By Natasha White Delegates from almost 200 countries are gathering this week in Cali, Colombia, for the biennial United Nations summit on biodiversity, the first one since the landmark Global Biodiversity Framework was signed in Montreal in December 2022. It comes as natural abundance continues to decline at an alarming rate. The planet is in a "critical situation," said Susana Muhamad, COP16 president and Colombia's environment minister. Read More: Earth Has Overshot Key 'Planetary Boundaries,' Scientists Warn The summit's goal, Muhamad said, is to "make peace with nature." In practical terms, that means assessing and advancing nations' progress on their efforts to implement the 2022 framework. The pact spells out targets from protecting 30% of the globe's land and sea to halving food waste to slashing use of harmful chemicals. Mist drifts above the rainforest in Brazil's Amazonas state in 2019. Photographer: Dado Galdieri/Bloomberg Around 14,000 people are registered to attend — a record turnout, according to Astrid Schomaker, executive secretary of the UN Convention on Biological Diversity. That includes more than 100 government ministers and several heads of state, Muhamad said. Some of the world's biggest banks, including JPMorgan Chase & Co. and Standard Chartered Plc, are sending representatives for the first time. Citigroup Inc., Bank of America Corp., HSBC Holdings Plc and Deutsche Bank AG will also be present. The focus will be threefold: Combatting 'biopiracy' Perhaps the biggest issue is deciding the final details of a new global system to collect and share a sliver of the trillions of dollars in revenue raked in by the world's largest companies. Conglomerates in sectors like pharmaceuticals and biotechnology would be asked to contribute to a fund to compensate countries from which their resources are derived. That money would in turn be used to protect nature. In the past, researchers interested in, say, tree sap to help create new drugs would physically export samples. Now, they're much more likely to take a digital fingerprint. But there's no global rule governing how countries should be paid for that information on their genetic resources, a situation that some countries liken to a form of piracy. Discussions are set to be highly contentious. Research firm BloombergNEF rates the likelihood of parties reaching consensus on the details of a mechanism and fund at only 2 in 10. Taking stock Countries are due to submit their so-called national biodiversity strategies and action plans for meeting the framework by the start of the summit Monday. At the end of Saturday only 31 countries plus the EU had done so. Laggards include the UK and Switzerland, as well as a number of the world's so-called "megadiverse" countries, among them Brazil, India and South Africa. (The US is not a signatory.) Banks and investors are looking to the national plans to help shape their investment decisions and in-house nature strategies. Investors can then "actually start to think about, 'OK, where are the returns and what will be commercially viable?'" said Judson Berkey, group head of engagement and regulatory strategy at UBS Group AG, Boosting finance The 2022 framework called for raising $700 billion per year for nature protection and restoration. As at the better-known climate COPs, who pays, how much and to whom will be points of contention. On the public finance side, developed countries have committed to contribute at least $20 billion per year by 2025 to poorer countries. For 2022 — the latest year for which data is available — they were $4.6 billion short of that target, according to the Organisation for Economic Co-operation and Development (OECD). Read More: Why Biodiversity Urgently Needs More Financing Options There's already been controversy. Campaign for Nature, a nonprofit, says most of the projects to which the $15.4 billion in biodiversity finance was allocated are only tangentially linked to protecting biodiversity. Still, Muhamad said she's calling for developed countries to increase the pledge, and a new broad-based fund is on the table too. "It's very important to understand that there is a commitment that is going to be fulfilled," she said. "This is fundamental for the trust between the parties." When it comes to private capital, proposals have ranged from impact funds or bonds to a new market for biodiversity credits. Behind closed doors, bankers have said they're at a loss about how to approach the topic. Read the full story on Bloomberg.com. |
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