In News:

‘Cali Fund’ launched at CBD COP16 in Rome to boost biodiversity finance.

Key Details:

• Launched at: COP16 to the UN Convention on Biological Diversity (CBD), held in Rome in 2025.
• Purpose: The Cali Fund aims to promote the fair and equitable sharing of benefits arising from the use of Digital Sequence Information (DSI) on genetic resources, marking a major step towards fulfilling Goal C and Target 13 of the Kunming-Montreal Global Biodiversity Framework (KMGBF)—which targets halting and reversing biodiversity loss by 2030.

Key Features of the Cali Fund:

• Origin: It builds on the multilateral mechanism adopted during COP15 (2022) and was operationalised at COP16 (2025).
• Objective:Mobilise financial contributions from the private sector to support biodiversity conservation and implementation of National Biodiversity Strategies and Action Plans (NBSAPs).
• Hosted By: Multi-Partner Trust Fund Office (MPTFO).
• Managed By: United Nations Development Programme (UNDP) and United Nations Environment Programme (UNEP).
• Secretariat: Hosted by the Convention on Biological Diversity (CBD).

Funding Mechanism:

• Source of Contributions: Companies commercially utilisingDSI—genetic data from plants, animals, and microorganisms—especially in sectors like:
  • Pharmaceuticals
  • Cosmetics
  • Agriculture and biotechnology
  • Industrial biotech and AI-assisted research
• Exemptions: Academic institutions, public research bodies, and entities not reliant on DSI are exempt.
• Allocation:
  • 50% of resources are earmarked for indigenous peoples and local communities, especially women and youth, recognising their key role in biodiversity protection.

Significance:

• Global First: First UN biodiversity fund to receive direct contributions from private companies.
• Support for Biodiversity Action Plans: Assists developing countries in implementing their KMGBF targets and NBSAPs.
• Boosts Scientific Research: Enhances capabilities for storing, using, and analysing DSI.
• Promotes Collective Action: Encourages industries benefiting from biodiversity to reinvest in its protection—ushering in a new era of biodiversity finance.

About Digital Sequence Information (DSI):

• Definition: Digitally stored genetic data from DNA, RNA, and proteins.
• Use Cases: Vital for research in health, food security, climate change, conservation, and bioeconomy.
• Governance: Discussed under CBD, WHO PIP Framework, UN Law of the Sea, and others.