COP 16: Biodiversity summit falls short of key implementation targets
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Article Type
Sustainability Soapbox
Topic
Responsible Investing
Published
November 13, 2024
Read time
5 mins
Author
Robin Honeyman
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The UN Biodiversity COP16 in Cali, Colombia ended on 1 November 2024 with mixed results. Following COP15’s landmark Global Biodiversity Framework (GBF), this implementation-focused conference aimed to translate ambitious goals into concrete action. However, progress fell short in several critical areas.

 

Financing Gap Widens

The GBF’s financing targets remain largely unmet:   

  • By 2030: to mobilise $200 billion from public and private funds,
  • By 2025: to raise financial flows from developed to developing countries to at least $20 billion
  • Current reality: Only $163 million in new contributions were pledged by countries at COP16, bringing the total to $400 million – less than 1% of the 2025 target.

 

National Action Plans Fall Behind 

NBSAP – crucial blueprints for implementing the GBF’s targets – saw limited adoption. Of the 196 participating nations, only 44 submitted plans. Developing countries cited a lack of financial assistance as the key barrier to submission while developed countries blamed a lack of time. The poor submission rate has hampered progress on establishing monitoring frameworks.

 

Signs of Progress

Despite overall challenges, two positive developments emerged:

1. Corporate Sector Engagement


The Taskforce on Nature-related Financial Disclosures gained momentum:

  • Early adopters increased from 320 to over 500 companies since January 2024
  • 57% will start reporting against the framework for FY2024.
  • In the absence of agreed monitoring indicators, the TNFD may fill the gap, at least for corporates.

 

2. Innovation in Resource Sharing

A new global fund for digital sequence information (DSI) was established:

  • The agreement states that companies using DSI should be subject to a voluntary levy of 1% on profits or 0.1% of revenues if they are used in commercial pursuits, such as drug development.
  • This levy would impact sectors such as pharmaceuticals, agriculture, and food and beverages
  • 50% of the fund will be distributed to Indigenous People to aid their conservation efforts.

 

Implementation Challenges

There has been some pushback from the private sector. Pharmaceutical businesses based in the UK and Europe have argued that the levy would reduce their competitiveness with US peers as the USA is currently not a signatory to the UN Biodiversity process (and therefore not subject to the levy). While there was some muted progress in Colombia, challenges clearly remain after COP16, particularly on the point of financing which is holding back other areas, such as national plans.

 

Next Steps

The next biodiversity COP will be held in 2026, and we think it is unlikely we will see consensus on financing arrangements before then, although we may see countries continue to release their NBSAPs. For corporates, the picture is brighter as the pace of adoption of the TNFD is encouraging and looks set to continue.

Disclosures

Author

Robin Honeyman
Responsible Investment Associate
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