COP16 Rome: Strengthening Global Biodiversity Commitments 

B4NZ participated in the 16th United Nations Biodiversity Conference (COP16), which initially took place in Cali, Colombia. Discussions in Cali centred on the means of implementation for the Global Biodiversity Framework (GBF), focusing on how countries could translate biodiversity commitments into concrete action. Key agreements included the establishment of a new fund for benefit-sharing from digital sequence information (DSI), ensuring that industries profiting from genetic resources contribute equitably. Delegates also agreed to create a dedicated subsidiary body to enhance the role of Indigenous peoples and local communities in biodiversity governance and to introduce a process for identifying ecologically and biologically significant marine areas to reinforce ocean conservation efforts. 

While these discussions were productive, negotiations in Cali did not formally conclude, as critical issues—particularly those related to financing mechanisms and implementation strategies—remained unresolved. As a result, world leaders convened again in Rome from 25-27 February 2025 to continue discussions and reach definitive agreements on how to fund and implement the GBF effectively. 

Key Outcomes from COP16 Rome – A Financial Sector Perspective 

The resumed COP16 delivered crucial agreements to advance the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF). These decisions hold significant implications for the financial sector, particularly for institutions aligning with nature-positive finance and the net-zero transition. 

Mobilising $200bn Annually for Biodiversity by 2030 

One of the most significant outcomes was the agreement to scale up biodiversity financing to $200bn per year by 2030, with at least $20bn annually flowing to developing countries by 2025, rising to $30bn by 2030. This commitment reflects a growing recognition that private sector engagement and financial instruments will be essential to achieving biodiversity goals. 

A major milestone was the establishment of the first-ever ministerial dialogue on nature with finance ministers, moving biodiversity from the periphery to a central position in global economic policy. The financial sector plays a pivotal role in meeting these funding targets. Mobilising private capital will be essential, and initiatives like the Taskforce on Nature-related Financial Disclosures (TNFD) are likely to shape how banks, insurers, and investors measure and mitigate biodiversity-related risks. The integration of nature-positive finance into lending and investment decisions will be a key focus for responsible financial institutions.  

At B4NZ, one of the key conversations we had with government officials and our members in Cali was around de-risking nature-related investments for financial institutions to enable larger capital flows into biodiversity finance. Addressing investment risks is critical to ensuring that private sector funding can scale effectively, and we look forward to progressing our work in this space to help create financial mechanisms and partnerships that facilitate greater private sector participation in nature conservation. 

The Launch of the Cali Fund – Sharing Benefits from Genetic Resources 

At COP16 in Rome, delegates officially launched the Cali Fund, which facilitates benefit-sharing from digital sequence information (DSI)—the genetic data of plants, animals, and microorganisms. Under the agreement, industries such as pharmaceuticals and biotechnology will contribute 0.1% of profits or 1% of revenue from DSI-related research to the fund, with half of the proceeds directed to Indigenous Peoples and local communities. 

The Cali Fund sets a precedent for integrating biodiversity-related obligations into global trade and finance. Financial institutions involved in biotech, pharmaceuticals, and agribusiness should anticipate potential expansions in levies on biodiversity-derived revenue streams. As regulatory frameworks evolve, embedding nature-positive metrics into investment due diligence will become increasingly important. 

Strengthening the Monitoring Framework for Biodiversity Commitments 

Delegates at COP16 Rome approved a strengthened monitoring system to track progress against the KMGBF’s 23 global biodiversity targets. This framework includes standardised indicators and national reporting requirements, ensuring that countries provide transparent, comparable biodiversity data. 

Transparent monitoring is crucial for nature-focused financial strategies. As governments improve biodiversity data collection, financial institutions will have better access to metrics for risk assessment and impact measurement. This is a step toward standardising nature-related financial disclosures in investment and lending decisions. 

Establishing a Permanent Financial Mechanism for Biodiversity by 2030 

A significant breakthrough at COP16 was the agreement to establish a long-term financial mechanism for biodiversity conservation by 2030. Currently, the Global Environment Facility (GEF) serves as an interim mechanism, providing over $3bn for biodiversity protection between 2022 and 2024, leveraging more than $22bn in co-financing. 

Despite the difficult negotiations, countries reached an agreement to create a new system for gathering and allocating nature finance in the lead-up to COP19. This is a significant achievement for the Global South as it ensures they will finally receive the support they have been calling for in the coming years. 

According to the roadmap, countries must determine the criteria for the mechanism by COP17 next year in Armenia. By COP18, they will need to decide whether to establish a new fund and, if so, ensure it becomes operational by COP19 in 2030. 

A stable and well-funded biodiversity finance system presents a new landscape for nature-focused financial products. As banks and investors seek nature-positive portfolios, structured finance mechanisms, such as biodiversity credits, sovereign green bonds, and nature-related blended finance, could see significant growth. 

Conclusion: The Role of the Financial Sector in Driving Biodiversity Action 

COP16 reinforced the need for stronger financial engagement in biodiversity conservation. The agreements reached in Rome create new obligations, risks, and opportunities for the financial sector, particularly for institutions committed to nature-positive and net-zero aligned finance. 

Yerevan, Armenia, will host the next COP conference, COP17, in 2026, bringing together stakeholders to discuss progress on the Global Biodiversity Framework. 

At B4NZ, we are committed to maintaining momentum following COP16 by continuing our engagement with the UK Government to ensure that biodiversity finance remains a priority and translates into tangible action. Collaboration will be key in driving meaningful progress, and we look forward to working with stakeholders across different sectors to advance this agenda. If you are interested in discussing how we are contributing to this space, please get in touch. 

Contact 

Elena Pérez Celis
Head of Policy & Public Affairs
elena.perezcelis@b4nz.co.uk