The United Nations has officially launched the Cali Fund to boost global biodiversity financing, ensuring private sector contributions support conservation and sustainable development. The fund, introduced at the COP16 resumed session in Rome, aims to mobilize financial support from companies profiting from genetic data, with at least 50% of proceeds directed to Indigenous and local communities. This initiative aligns with the Kunming-Montreal Global Biodiversity Framework (KMGBF) and seeks to bridge biodiversity research and funding gaps. 

The Cali Fund marks the first mechanism under the Convention on Biological Diversity (CBD) that mandates financial contributions from private sector entities, particularly in the pharmaceutical, biotechnology, and cosmetics industries that utilize Digital Sequence Information (DSI). While corporate participation remains voluntary, companies that contribute will be recognized as sustainability leaders. Elizabeth Mrema, UNEP Deputy Executive Director, emphasized that businesses embracing biodiversity responsibility will benefit from growing public demand for ethical environmental practices. 

Direct Support for Local Communities 
Half of the fund’s proceeds will go directly to Indigenous peoples, local communities, women, and youth—key custodians of biodiversity. These funds will support the implementation of National Biodiversity Strategies and Action Plans (NBSAPs) in developing nations, advancing global conservation efforts. 

The launch comes as negotiations intensify to mobilize $200 billion annually for biodiversity protection. Disputes persist over funding sources and distribution mechanisms, but the European Union has reaffirmed its commitment, with Commissioner Jessika Roswall stating that biodiversity funding remains a priority despite geopolitical challenges. 

Managed by the UN Multi-Partner Trust Fund Office (MPTFO) in partnership with UNDP and UNEP, the Cali Fund is a major step in securing private sector engagement for biodiversity. The focus now shifts to securing corporate commitments, ensuring long-term financial support for global conservation efforts. 

Sources: 

https://esgnews.com/un-launches-cali-fund-at-cop16-resumed-session-to-secure-private-sector-biodiversity-contributions/ 

https://mptf.undp.org/news/press-release-cali-fund-launches-margins-resumed-session-cop16 

https://www.downtoearth.org.in/wildlife-biodiversity/cali-fund-launched-at-cbd-cop16-in-rome-to-boost-biodiversity-finance 

https://sdg.iisd.org/news/new-fund-to-support-global-biodiversity-framework-indigenous-peoples/