Beyond Commitments: The State of Biodiversity Finance after COP16
Climate finance is top of the agenda at the 29th Conference of the Parties (COP29) where negotiators are seeking to increase the US$100bn annual target for developing nations.
Climate-related impacts are amplified by failure to protect global biodiversity. In October, the Biodiversity COP16 was the first major gathering since the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF), which set ambitious targets to halt and reverse biodiversity loss by 2030.
Genesis Analytics’ Climate Finance & Economics (CFE) practice team have analysed the wider implications of how the need for financial resources was addressed at COP 16.
Biodiversity finance targets
COP15 had ended with agreement on ambitious funding targets to reverse biodiversity loss by 2030 - a minimum annual target of US$200bn for conservation, with developed countries pledging $20bn by 2025 and $30bn by 2030. But an estimated annual shortfall of $700bn remains.
The Global Biodiversity Framework Fund (GBFF) to centralise finance target contributions was created at COP15. Developed countries' contributions to reversing biodiversity decline were insufficient with only US$250m raised by August 2024. This was increased by US$163m during COP 16.
Many developing countries called for the establishment of a new biodiversity fund at COP16, whilst developed countries proposed a review of existing financial arrangements by COP18 and shifted focus toward mobilising private sector funds to address the shortfall.
National Biodiversity Strategies and Action Plans (NBSAPs) are essential tools for implementing the GBF, and countries were expected to submit updated plans aligned with the framework. Only 44 countries had submitted revised NBSAPs by the end of the conference (see above), while 119 had provided national targets aligned with the GBF.
Overall outcomes from COP16
Countries reached consensus on the "Cali fund," a benefit-sharing mechanism for Digital Sequence Information (DSI), the genetic information from plants and animals. DSI is often used by the pharmaceutical and cosmetic industries based in the global north, using materials from biodiversity rich countries in the global south. At COP16, parties agreed on the creation of a global fund to ensure benefits are shared fairly, especially with Indigenous Peoples and Local Communities (IPLCs). Companies are expected to voluntarily contribute either 1% of profits or 0.1% of revenue.
The creation of a new permanent body for Indigenous Peoples was agreed, enabling them to provide direct input and perspectives at future biodiversity COPs. This was based on the premise of “respecting, preserving, and equitably sharing the benefits of Indigenous knowledge related to biodiversity”.
The financial and strategic commitments of the Kunming-Montreal framework must be realised by advanced economies. Without commitment and action on climate finances to developing countries, global biodiversity targets remain unlikely.
What are we doing at CFE?
At Genesis, we recognise that biodiversity, like climate change, is at the core of today’s global challenges - especially in developing countries, the most vulnerable and affected by climate change. Our work integrates ecological, economic, and social dimensions to support biodiversity resilience and conservation financing. We collaborate with diverse stakeholders to embed socioeconomic insights into biodiversity strategies, fostering both public and private investment flows essential for nature protection.
Our approach is multidisciplinary. Our just transition work considers equity, jobs, and the impacts of structural changes in emerging economies, amplifying the voices of marginalised communities and assessing the distributional effects of policies. In resilience and adaptation, we identify and mitigate biodiversity and climate risks, promote nature-based solutions, and protect vulnerable communities from economic losses. Our climate finance work aims to incentivise private sector involvement, de-risk investments, and pioneer innovative financing models that bridge funding gaps.
Through technical assistance, analytics, and strategic partnerships, we generate actionable, evidence-based solutions to support climate and biodiversity goals, aiming for a sustainable future where nature and societies thrive together.