Companies Now Required to Contribute to Biodiversity Fund Using Genetic Resource Data
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Synopsis
On February 25, the Cali Fund was launched, requiring companies utilizing Digital Sequence Information to contribute to biodiversity funding, promoting equitable sharing and conservation efforts globally.
Key Takeaways
- Cali Fund launched to support biodiversity.
- Companies using DSI to contribute revenue.
- 50% funds dedicated to indigenous communities.
- Support for National Biodiversity Strategies.
- Exemption for non-DSI reliant entities.
Rome, Feb 25 (NationPress) In a significant advancement under the Convention on Biological Diversity (CBD), the Cali Fund for the Fair and Equitable Sharing of Benefits from the utilization of Digital Sequence Information on Genetic Resources (DSI) was inaugurated on Tuesday.
Companies leveraging data from genetic resources across various profitable industries are now anticipated to allocate a portion of their earnings to this fund.
The Cali Fund, which was introduced during the second day of the resumed session of COP16 of the CBD at the headquarters of the Food and Agriculture Organisation of the United Nations (FAO), aims to generate new funding avenues for global biodiversity initiatives, aligning with the three goals of the CBD: conservation of biological diversity, sustainable usage of its components, and equitable sharing of benefits derived from genetic resources.
In acknowledgment of their role as guardians of biodiversity, 50% of the Cali Fund resources will be dedicated to the self-identified needs of indigenous people and local communities, especially women and youth.
The fund's disbursements will also facilitate the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF), a universal strategy aimed at halting and reversing biodiversity loss, particularly by supporting the execution of National Biodiversity Strategies and Action Plans (NBSAPs) by developing nations and enhancing scientific research on biodiversity.
In accordance with decision 16/2, adopted on November 2, 2024, at COP16 in Colombia, the Cali Fund will be managed by the Multi-Partner Trust Fund Office (MPTFO) in collaboration with the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP), with the CBD Secretariat overseeing the Cali Fund Secretariat.
A memorandum of understanding formalizing this structure was signed during the launch event.
"I commend the CBD Secretariat for their tireless efforts in preparing the launch of the Cali Fund just four months after the decision operationalizing it was adopted," expressed Susana Muhamad, the COP16 President.
"Colombians are proud that this significant achievement under the CBD emerged at La COP de la gente in Cali."
"Today's launch exemplifies effective multilateralism," stated Elizabeth Mrema, UNEP Deputy Executive Director.
"The responsibility now rests on businesses globally. Those who contribute to the fund will be recognized as pioneers and will enjoy the advantages as society increasingly acknowledges the necessity of giving back to nature."
Major corporations and entities that benefit from DSI are expected to contribute a share of their revenues from sectors heavily reliant on DSI usage, including pharmaceuticals, cosmetics, agricultural biotechnology, and laboratory equipment. Those involved in scientific and technical services related to DSI, including artificial intelligence, are also included.
Entities such as academic institutions, public databases, and research organizations not dependent on DSI are exempt from funding the Cali Fund.
