CBD COP16 Cali, Colombia: Biodiversity interest still building but no significant developments this time

Two years have passed since the historic signing of the Global Biodiversity Framework (GBF) in December of 2022. Columbia hosted the event this year with expectations for the momentum to continue.

At CBD COP15, the GBF set out 4 key goals by 2050

Four overarching goals to be achieved by 2050 are:

1. Focusing on ecosystem integrity and limiting extinction of threatened species
2. Sustainable use of biodiversity and natural capital
3. Fair sharing of benefits from genetic resources
4. Ensuring adequate means of implementation, specifically financial resources and global scientific cooperation

This framework (GBF) also set out 23 specific targets for 2030

Among the 23 targets for 2030 there are two which are the most important: target 3 and 4 - the conservation of at least 30% of the world’s lands, inland waters, coastal areas, and oceans and the restoration of 30% of the degraded areas and ecosystems. Some of the other targets include:

• halving global food waste
• reduce excess pollution from fertilizers, waste and pesticides
• reducing harmful subsidies by $500 billion per year
• mobilising $200 billion per year for biodiversity-related funding

Broadly, the conference in Cali has been a disappointment and a missed opportunity to build on the solid foundations laid by landmark moment in Montreal at COP15. The signing of the GBF brings the need for countries to demonstrate action and have measurable targets and commitments that can be tracked. Just 44 of the 196 country signatories released formal plans and the UK was the only G7 signatory member to not provide a full target. It should be noted the US is not a signatory to the GBF and therefore has not set a target.

Furthermore, there also appeared to be a lack of clarity on building a framework to monitor progress against the targets of the GBF which is an area of much needed clarity.

Perhaps optimistically, by the close of the conference 119 countries (up from 44), had produced a national target of some form, but most still do not have an accompanying plan for how they will be achieved.

Lastly, on targets, 70% of the world’s biodiversity is found in 17 “megadiverse countries” (includes Australia, USA, Brazil, India and Columbia) and of these nations, 12 failed to provide targets in time for the conference.

Other outcomes witnessed: TNFD met with significant adoption

On the positive side, the Taskforce on Nature related Financial Disclosures (TNFD) had a busy conference. Firstly, the group has already gathered 502 financial institutions that have committed to voluntary reporting – a 57% increase from the initial numbers announced in January this year. With the TNFD closely aligned to the GBF, it’s great to see financial markets participating greatly where governments are perhaps lagging. We should expect to see the first TNFD reporting and disclosures for FY2024.

We also saw TNFD publish their initial draft guidance on nature transition planning. Where the goldrush for net-zero carbon target setting led to confusion and greenwashing, it is clearly an important factor for guidance to be available for firms to set targets with comfort around nature transition planning.

Nature Action 100 first benchmark assessments

NatureAction 100 launched last year and outlined its key focus companies with AstraZeneca, Amazon, Johnson & Johnson, Novo Nordisk, Unilever and Rio Tinto among the names highlighted. NatureAction is seeking greater disclosure for where corporates are exposed to nature-based risk or dependencies and how they are managed.

It should be noted that NatureAction100 is still an early-stage development, so we should allow companies some time to get to grips with the asks set out by the collaborative engagement initiative. With that in mind, it is therefore not a surprise that the first benchmark assessment of corporate responses showing that there is a lot more to be done. Less than half of the named companies are fully aligned with the ambition component of Nature – “The company has a commitment to avoid and reduce key drivers of nature loss and/or to restore and regenerate ecosystems throughout its value chain".

Biopiracy and Digital Sequence Information Fund

Genetic data that originates from nature has largely been freely shared for years and companies have profited extensively from this information, especially commercial drugs and the pharmaceutical industry. An agreement was reached that would see large companies needing to contribute to a fund that would be used for nature conservation. Companies would be expected to contribute 1% of profits, or 0.1% of revenue if the hit two out of three criteria: 1) sales of more than $50m (£39m), 2) profits of more than $5m, and 3) $20m in total assets would contribute to a DSI Fund.

Whilst this was agreed, we do not yet know which countries globally would introduce this. The fund is estimated to raise upwards of £1bn per year. The news has not been too well received by corporates with AstraZeneca replying to this idea suggesting it would cut jobs in the UK if the government were to introduce this.

Finance – more COP out when it comes to funding global issues.

We have seen the climate focused COPs gather significant business attention in recent years. Given the big forward-looking investment opportunity this is very understandable. However, when we turn to nature preservation and biodiversity management, the dollar signs of excitement and opportunity are yet to start flashing. That is perhaps because the system we have operated in until now is one where natural capital is more often an input into business or is negatively impacted by product of processes. Nature is broadly taken for granted but is a system we should try to preserve most likely at a cost, rather than something that can be repackaged into a product and a business revenue generating function. The key element of finance that can help is funding to unlock the protection and restoration efforts. GBF Fund – highest estimates are around the $200bn a year in financing needed for various GBF challenges on land and Sea. So far funding has amassed £163m.

Finishing on a positive, smaller more specific purpose groups continue to gain support

The GBF was signed by 196 signatories back in 2022 but some of the more specific targets were pioneered by other smaller groups of countries. Specifically, the 30% of nature protection target was led by the High Ambition Coalition for Nature and People (HACN&P) which at the close of COP15 was 114 countries led by Costa Rica, France and the UK. Currently these levels are somewhere closer to 17% of land and just 8% of oceans protected. Most notably China has also joined the (HACN&P) in December 2023.

With the commencement of COP29, we expect to see further targets and initiatives for Climate Change to be supported and will be covering these in the coming weeks.