CBD COP 16 saw important agreements on equitable biological data use and Indigenous representation. Discussions and action on funding, however, fell short of hopes for the conference. Separately, Investors made their presence felt, with a packed room to mark the launch of the first Nature Action 100 benchmark.
The biennial UN conference for biodiversity in Cali, Colombia brought together leading figures from governments, businesses, financial institutions, Indigenous communities and more to discuss the pressing issues of nature and biodiversity loss.
Expectations were high following the ambitious development of the Global Biodiversity Framework (GBF), or Biodiversity Plan, at COP15 in Montreal in 2022. However, despite some breakthroughs, funding and agreements fell short as negotiations ran out of time. We outline the highlights, what was missed, and how investors made their presence felt.
Access to data
A core outcome of the conference was agreement on terms around the equitable use of, and access to, biological data collected from other nations. Termed the ‘Digital Sequencing Agreement’, companies will be asked to contribute 1% of profits, or 0.1% of total revenue, to funds for the countries in which they collect biological material for the purpose of scientific research or product development. This measure is suggested to raise up to USD1 billion annually, but is currently a voluntary mechanism and limited to companies operating domestically.
From an investor perspective, discussions on data were reoccurring. Progress included the launch of the Taskforce for Nature-related Financial Disclosures’ (TNFD) new draft guidance for nature transition planning. Improved transparency and accurate disclosures will be invaluable in accelerating transparency and accurate disclosures in this space.
However, it was widely acknowledged that nascent data availability shouldn’t stop investors making progress, as many other avenues for action are still open.
Platforming Indigenous voices and representation
Another important agreement involved the establishment of a subsidiary body to include Indigenous peoples at every level of discussions on the GBF, giving Indigenous voices a permanent role in negotiations. This is a small but significant first step, especially ahead of COP30 in Brazil, where the country’s Indigenous population and their intrinsic relationship with the Amazon rainforest is a key topic of discussion.
The inclusion of Indigenous voices and communities in decisions on nature and biodiversity preservation is fundamental to progress. Demonstrating a clear commitment to uphold the rights of Indigenous People and engagement with Indigenous groups on nature is a key feature of the Nature Action 100 Benchmark, and features as part of the Investor Expectations for the Finance Sector Deforestation Action (FSDA). IIGCC helped launch and co-convene the former and is the Secretariat for the latter.
Looking ahead, addressing barriers to inclusion for indigenous delegations should remain a priority for COPs to come.
The first set of Nature Action 100 results show that most of the initiative’s 100 companies are in the early stages of addressing their nature-related impacts and dependencies.
The stalling of funding and targets
While the conference marked USD163 million in pledges to the Global Biodiversity Framework (GBF) Fund, it falls short of what was hoped for. Notably, most nations failed to submit National Biodiversity Strategy and Action Plans (NBSAPs). By the end of the conference 115 nations had submitted GBF plans, but only 44 had pledged updated NBSAPs.
A key point of tension centred around discussions of a new fund to help poorer nations restore their depleted natural environments. The proposal was blocked by a group of developing nations including the EU, Japan and Canada.
Sessions also failed to produce much progress on the USD200 billion per year fund for nature outlined in Target 19 of the GBF. No agreement was reached on how to monitor biodiversity targets and a CBD COP-specific budget failed to receive approval. Time constraints for some delegates and a lack of consensus on these issues ultimately led to the suspension of the conference.
Nature Action 100 Benchmark Assessment Launch
Nature Action 100, the first global investor-led engagement initiative to address nature and biodiversity loss, announced its inaugural benchmark assessments at COP16. This assessments measure corporate progress toward the initiative’s Investor Expectations for Companies.
The first set of results shows that most of the initiative’s 100 companies are in the early stages of addressing their nature-related impacts and dependencies. It also makes clear that more urgent and ambitious action is needed for companies to mitigate the growing material financial risks their businesses face from nature loss.
To mark the launch, we co-hosted an event to showcase key findings and speak more widely about the use case for investors. This included a panel discussion featuring Emine Isciel from Storebrand Asset Management, Joe Horrocks-Taylor from Columbia Threadneedle, Humberto Delgado-Rosa from the European Commission, and Andreas Dahl-Jørgensen from Norway's International Climate and Forest Initiative (NICFI), moderated by Jérôme Kisielewicz from ICF Investments.
The packed room highlighted the increasing importance investors are placing on nature, where the overlap with climate continues to grow.
If you’re interested in nature as a key pillar of our work at IIGCC why not join us as a member to access working groups and key material? Please contact Sarah Findlay for more information.