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A new international fund has been created to help protect biodiversity. The ‘Cali Fund’ was launched on February 25, 2025, at the resumed 16th Conference of Parties (COP16) to the United Nations Convention on Biological Diversity (CBD) in Rome.
It will collect money from private companies. These companies use genetic data from nature in their businesses. This marks an important step in ensuring industries benefiting from biodiversity also contribute to its conservation.
The Cali Fund will receive money from businesses that rely on Digital Sequence Information (DSI). DSI includes genetic data from plants, animals, and microorganisms. Industries like pharmaceuticals, cosmetics, agriculture, and biotechnology use DSI to develop products.
Under this new system, they will now have to contribute a part of their revenue to support biodiversity efforts.
The money collected will be used in several ways. It will support biodiversity conservation projects, help developing countries implement their biodiversity action plans, and fund scientific research to improve how genetic data is stored and used.
At least 50 per cent of its resources will go to indigenous peoples and local communities, recognising their crucial role in protecting nature.
This is the first time that a global biodiversity fund under the UN will receive direct contributions from businesses. COP16 President Susana Muhamad said Colombia is proud that this initiative was finalised at “La COP de la Gente” in Cali.
Astrid Schomaker, Executive Secretary of the CBD, called the fund “a new era of collective action for biodiversity”.
The United Nations Development Programme (UNDP) and United Nations Environment Programme will manage the fund. The Multi-Partner Trust Fund Office (MPTFO) will handle administrative tasks.
Private sector partners also expressed their support for the fund. Marcos Neto, Director of UNDP’s Sustainable Finance Hub, emphasised its importance in channeling resources to those who safeguard biodiversity. “Success of the Cali Fund will be critical for providing finance to people on the ground who are custodians for species and genetic diversity. We are proud to be a founding partner for this groundbreaking Fund,” he said.
This fund was created following a historic agreement at COP16 in Colombia last year, which set up a global system for sharing benefits from DSI.
Now, the focus is on making sure businesses pay their fair share and that the money reaches the communities and projects that need it most.
The Cali Fund is seen as a key step towards meeting the Kunming-Montreal Global Biodiversity Framework (KMGBF) goal of stopping and reversing biodiversity loss by 2030.