COP16 2.0: States finalise $200bn-per-year plan for biodiversity
Sustainability professionals applaud the “historic” outcome, but want to see real money on the table
More than 140 nations attending COP16 have agreed on a financial roadmap to channel $200bn annually by 2030 toward safeguarding biodiversity, though deferred a decision on a new global nature fund to 2028.
Negotiators in Rome also agreed on $20bn per year in conservation financing for developing nations, with that figure rising to $30bn annually by 2030.
Building on the landmark 2022 Kunming-Montreal Global Biodiversity Framework—which identified a staggering $700bn annual financing gap for biodiversity and set out plans to slash or redirect $500bn in harmful subsidies—the delegates took steps to operationalise these ambitions
The agreements follow a previous round of inconclusive talks in Colombia last year, when countries failed to agree on the creation of a new global fund for nature. Establishing the fund was a key demand of developing countries, but the EU, Switzerland and other developed nations raised last-minute objections.
Susana Muhamad, Colombia’s outgoing Minister of Environment and president of the negotiations, called the new financial roadmap Kunming-Montreal Global Biodiversity Framework’s “legs, arms, and muscles”.
The discussions also saw the formal launch of the Cali Fund—a global financial mechanism designed to ensure fair benefit-sharing from digital sequence information on genetic resources. Voluntary contributions from industry players are expected to underpin this fund, with at least 50% of its resources earmarked for indigenous peoples and local communities, recognised as the primary custodians of biodiversity.
KEY OUTCOMES
- Countries agreed to mobilise at least $200bn annually by 2030 to bridge the biodiversity financing gap. This includes raising $20bn per year for developing nations by 2025, scaling up to $30bn annually by 2030.
- A pledge was made to cut or redirect $500bn in harmful subsidies by 2030 that currently encourage activities detrimental to biodiversity.
- The new Cali Fund supports benefit-sharing from digital sequence information (DSI) on genetic resources, with at least 50% of funds allocated to indigenous peoples and local communities.
- An improved framework for planning, monitoring, reporting, and reviewing progress under the Kunming-Montreal Global Biodiversity Framework was adopted, aiming to bolster transparency and accountability toward the 2030 targets.
- The agreement reinforces the 30x30 target, aiming to protect 30% of terrestrial and marine areas and restore 30% of degraded ecosystems by 2030.
Sustainability professionals want to see money on the table
Despite the reported palpable energy and standing ovations as the meeting concluded, several compromises and concerns remain. Some NGOs and youth representatives noted that the voluntary nature of key mechanisms, including the Cali Fund, could risk delivering “empty promises”. Additionally, the absence of the US—a non-party to the Convention on Biological Diversity—raises questions about the full financial firepower behind the commitments.
Greenpeace has welcomed the deal, but said that the agreement needs to be followed with actions. “This is a helpful move in maintaining trust that the nature finance gap can be closed, but it’s only one side of the coin, and we urgently need to see the other side too: money on the table," said An Lambrechts, head of Greenpeace's COP16 Colombia delegation.
Lorenzo Saa, chief sustainability officer at Clarity AI, applauded the “resilience of multilateralism”: “What a relief: at a time when geopolitical disunity seems to reign, the constructive spirit of negotiations and the genuine positive energy among delegates of different stripes felt like a rare win."
However, the mere “handful” of financial institutions present raised concerns about the buy-in from the financial sector.
“The global community—its financial institutions, both public and private—must now take a lesson from Ancient Rome: “Facta non verba”—deeds, not words,” he added. “These breakthroughs must be backed by real financial flows to ensure they have the legs to run.”
Why COP16 and nature are important for investors
Aviva, including representatives from Aviva Investors, was one of the few financial institutions that attended the first COP16 conference in Columbia last November.
Aviva's position is that "biodiversity considerations will become more prominent in years to come, bringing investment risks, but also significant opportunities to potentially generate alpha".
Opportunities stem from "investments in activities that contribute to restoring and protecting nature", the insurance and investment giant wrote in a recent blog. Well-positioned companies can reap "significant reputational benefits", leading to increased revenues. In particular, consumer demand for more sustainable products across Gen Z and millennial demographics creates opportunities for first movers. And investments positioned ahead of changing nature-related regulation are likely to benefit over the longer term.
West Yorkshire Pension Fund's Darran Ward recently highlighted "a growing recognition among institutional investors that natural capital is a critical component of a sustainable and resilient global economy".
By making direct, active investments in natural assets such as forests, wetlands, and sustainable agriculture, the local government pension scheme aims to enhance resilience, mitigate climate risks, and generate long-term financial returns.
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