As the world converges on Cali, Colombia, for COP16, negotiators from 196 countries face a daunting challenge: closing a $200 billion annual funding gap for biodiversity protection and restoration. The urgency of this task cannot be overstated. Our planet’s biodiversity is in crisis, and the solutions on the table—from donations by wealthy nations to innovative financial instruments like biodiversity credits—are steps in the right direction. However, the most promising initiative is the proposal to create a global system where the world’s largest companies contribute a small fraction of their revenues to a biodiversity fund.
This proposal marks a significant shift in how we value and protect our natural resources. For too long, the world’s genetic resources—microbes, plants and animals—have been seen as free for the taking. Companies have reaped immense benefits from these resources, developing life-saving drugs, vaccines and food products, often without compensating the countries from which these resources originate. This exploitation has perpetuated a system of biopiracy, where digital sequences of genetic information are extracted and utilized without any return to the source nations.
The proposed fund seeks to rectify this by ensuring that countries are compensated for the use of their genetic resources, even when these resources are digitized and used in labs far from their origins. The establishment of such a fund would not only provide much-needed financial support for biodiversity conservation, but also create a fairer and more equitable system for sharing the benefits of genetic resources.
COP16, the 16th Conference of the Parties to the United Nations Framework Convention on Climate Change, is a critical juncture for global environmental policy. This summit will bring together representatives from nearly every nation on Earth to address pressing issues related to climate change and biodiversity. COP16 is not just another conference; it is a unique opportunity to forge international agreements that can lead to meaningful action against the ongoing degradation of our planet’s ecosystems. The decisions made at COP16 will set the course for biodiversity protection efforts for the coming decade, making it an essential moment for corporate leaders to engage and influence the outcomes. By leaning into COP16, corporate leaders can help shape policies that are not only environmentally sound but also economically viable, ensuring that the measures adopted are sustainable in the long term.
Corporate leaders have a pivotal role to play in shaping and supporting this initiative. The proposed contributions, ranging from 0.1% to 1% of revenues, are modest when compared to the potential impact. For context, a 1% contribution from global retail sales could generate the necessary $200 billion annually. This is a cent on the dollar to save life on Earth—a small price to pay for the preservation of our planet’s biodiversity.
Yet, resistance is anticipated. Countries like Japan and Switzerland have expressed concerns about a mandatory mechanism, and pharmaceutical companies have warned of potential negative implications for public health. These concerns must be addressed through transparent and inclusive dialogue. It is crucial to strike a balance between fostering innovation and ensuring that the benefits of biodiversity are shared equitably.
The era of unbridled access to nature’s bounty is ending. As Siva Thambisetty, associate professor of law at the London School of Economics, aptly puts it, “the direction of travel is that biodiversity is not free.” This new paradigm of accountability and fair compensation is not just a moral imperative; it is a practical necessity for the sustainability of our planet.
Corporate leaders must recognize their responsibility and embrace this new model. By contributing to the biodiversity fund, they can help bridge the funding gap and support the conservation efforts that are critical to our planet’s future. This is not just about philanthropy; it is about ensuring the long-term viability of the natural resources upon which many industries depend.
As we move towards COP16, it is imperative for corporate leaders to step up and support this initiative. The stakes are too high for inaction. By committing to a fair and equitable system for sharing the benefits of genetic resources, we can ensure that biodiversity protection and restoration receive the funding they desperately need. This is a pivotal moment in the fight to preserve our planet’s biodiversity, and corporate leaders have the power to make a significant difference. Let us seize this opportunity to create a sustainable and equitable future for all.
