Overview From October 21 to November 1, 2024, COP16 gathers global stakeholders in Cali, Colombia, to advance the Kunming-Montreal Global Biodiversity Framework (GBF). The event focuses on tackling biodiversity loss, climate change, and pollution. It serves as a checkpoint to assess progress and intensify efforts toward meeting 2030 targets.
Why It Matters
Biodiversity Collapse Key Risk: As revealed by the World Economic Forum's Global Risks Report 2023, the rapid deterioration of biodiversity and ecosystem collapse is a top global risk with 50% of the global economy under threat from biodiversity loss.
Financial Risks and the Production Paradox: According to the investment bank Kepler Cheuvreux, systems relying on biodiversity generate $44 trillion per year for the global economy.
Capacity Building: Few if any private sector institutions, investors, and lenders employ trained ecologists in leadership positions.
Make Peace With Nature: During the summit’s opening ceremony on Sunday, Secretary-General António Guterres urged delegations from some 190 countries to “make peace with nature” and shore up plans to stop habitat loss, save endangered species, and preserve our planet’s precious ecosystems.
Connected Research from Responsible Alpha
Responsible Alpha organized this session with Bloomberg and PRI for the Ecological Society of America Annual Conference.
Click below to read previous Ressponsible Alpha articles on biodiversity
Join Responsible Alpha's Team at COP: Reach out to schedule time with our trained ecologists.
Key Facts
• 75% of global food crops rely on natural pollination by birds, bees and insects (IPBES 2019).
• Pollinator loss puts between $235 and $577 billion in annual crop output at risk, equal to 9% to 22% of total agricultural production (IPBES 2019).
• Biological control function, e.g. pest-control through animals eating insects and small mammals.
• Hedgerows increase crop production by 10% and reduce pesticide costs by 10% (by providing habitat to animals that control pests and pollinate crops, and by serving as windbreaker).
• Deforestation costs $4.5 trillion each year through the loss of biodiversity and exacerbation of water and soil erosion (IPBES 2019).
• 23% land areas saw a reduction in productivity due to land degradation and biodiversity loss (e.g. caused by land clearing, monocultures, overuse of fertilizer and pesticides, etc.) (IPBES 2019).
• Continuous land degradation and climate change expected to reduce global crop yields by 10% to 50% by 2050 (UNDP).
• Overuse of fertilizer and pesticides increases cost of freshwater production (EPA).
• Global food system – from farm to fork – causes 37% of global GHG emissions (IPCC).
• 75% of freshwater resources devoted to crop or livestock production (IPBES 2019).
Important Themes
Adopted in 2022, the Kunming-Montreal Global Biodiversity Framework sets ambitious goals to halt biodiversity loss. COP16 emphasizes "accelerated action" to ensure these targets are met. The EU’s opening statement stresses, “the urgency to act together as a global community has never been greater.” Efforts now shift to implementation, with plans to monitor progress and refine indicators. Funding from developed countries plays a key role, with the EU committing to strengthen the Global Environment Facility.
The convention underscores the critical role of Indigenous Peoples and local communities in biodiversity conservation. A new program under Article 8(j) aims to involve these communities actively in shaping CBD outcomes. Their traditional practices are vital to preserving biodiversity and achieving the framework's targets.
The UN Convention on Biological Diversity (CBD) describes biodiversity as “the diversity within species, between species and of ecosystems, including plants, animals, bacteria, and fungi”. These three work together to create life on Earth, in all its complexity.
National Biodiversity Strategies and Action Plans (NBSAP)
Only 20% of countries have presented national action plans two years after COP15, where the global biodiversity framework was agreed. Look for action plans to be presented in Cali. NBSAPs can be found here
Corporate Commitments and Gaps
Ahead of COP16, corporate commitments to biodiversity remain limited, despite increasing awareness since the Kunming-Montreal Global Biodiversity Framework's adoption. Many companies still struggle to assess their impact on ecosystems, and nature-related targets remain rare. The S&P Global report highlights that only a small percentage of firms have set measurable biodiversity targets, underscoring the gap between awareness and action. Latin American countries, especially Colombia, lead in biodiversity and deforestation-related corporate commitments, but systemic changes and stronger policies are needed globally to drive widespread business action and align with 2030 goals.
Policy Drivers and Challenges
The EU's Biodiversity Strategy for 2030 aligns initiatives, such as the Nature Restoration Law, with the GBF’s objectives to reverse biodiversity loss and improve climate resilience. Corporate accountability remains a central issue, with the Business for Nature coalition advocating for stricter regulations. The group emphasizes that “voluntary action alone is not enough” and warns that harmful subsidies now reach at least USD 2.6 trillion annually, which unintentionally promotes activities that harm nature. Addressing these subsidies and requiring companies to disclose their nature-related risks are seen as crucial steps forward.
Digital sequence information (DSI) also features prominently in discussions. The convention explores establishing a mechanism for fair benefit-sharing from DSI to ensure that biodiversity-rich countries receive equitable compensation. Ongoing debates address how to best protect traditional knowledge and allocate resources fairly.
Key Commodities and Sectoral Focus
At COP16, discussions on high-risk commodities highlight the need to address the environmental impacts associated with their supply chains. The focus is on implementing policies that ensure sustainable sourcing and promote supply chain transparency to reduce deforestation and biodiversity loss. The EU’s Deforestation Regulation (EUDR) is presented as a model for preventing products linked to deforestation from entering the market. By requiring strict traceability, the EUDR aims to protect ecosystems while pushing companies to adopt more sustainable practices. COP16 emphasizes that regulating sectoral commodities is crucial for aligning international trade with biodiversity goals, as well as mitigating financial risks for companies and investors.
Emerging Opportunities and Innovations
COP16 not only addresses current challenges but also explores emerging opportunities that could reshape global biodiversity efforts. A key focus is on nature-based solutions that enhance ecosystem services while benefiting communities and economies. Innovative approaches, such as integrating biodiversity metrics into financial risk assessments, show promise for aligning economic development with environmental sustainability. The convention also discusses technology's role in conservation, including remote sensing for habitat monitoring and digital platforms for sharing best practices. These innovations are set to play a crucial role in accelerating progress towards biodiversity targets.
Looking Ahead
As COP16 continues, scaling nature-based solutions to address climate change, biodiversity loss, and pollution remains a priority. Integrating these solutions into national policies and corporate strategies is crucial. A comprehensive global review process for the GBF’s implementation will help ensure transparency and drive future commitments, playing a key role in meeting the ambitious 2030 targets.
Conclusion
COP16 marks a pivotal moment in global biodiversity efforts, calling for swift action, ambitious policies, and strong collaboration. As stakeholders converge in Cali, the event highlights the urgent need to accelerate progress toward a sustainable and biodiverse future. The outcomes will shape the global agenda for biodiversity preservation and climate resilience.
Commenti