The UN Biodiversity Conference (COP16) in Rome has concluded with an agreement to mobilise $200 billion annually by 2030 to safeguard ecosystems and reverse biodiversity loss. This finance for nature deal resolves key financial disputes that had stalled negotiations at the previous COP16 session in Cali, Colombia.Â
With biodiversity loss accelerating at an unprecedented rate, this agreement is a crucial step towards ensuring long-term environmental and economic resilience. However, governments alone cannot shoulder this responsibility; business sustainability must also integrate finance for nature as a core priority. Keep reading to find out more about this landmark commitment.Â
A breakthrough in finance for nature
COP16’s financial breakthrough follows years of negotiations and disputes over how to fund global biodiversity protection. While the Kunming-Montreal Global Biodiversity Framework (GBF), signed in 2022, set ambitious targets (including protecting 30 percent of the planet’s land and sea), progress has been slow due to a lack of adequate funding.
The Rome agreement ensures that at least $20 billion per year will be directed towards conservation efforts in developing countries by 2025, rising to $30 billion by 2030. This commitment is part of a broader $200 billion global biodiversity finance goal, which will be sourced from public and private contributions.
Despite this progress, key governance questions remain unresolved. Discussions on whether a new entity will be established to oversee biodiversity funding and where it should be located have been postponed. These details will be critical in ensuring that the funds are effectively allocated and reach the areas most in need.
Discover how to develop an impactful biodiversity strategy and drive nature-positive action
The gaps in global conservation efforts
A major highlight of COP16 was the launch of the Cali Fund, a new initiative designed to encourage industries that profit from biodiversity to contribute financially to its protection. This reflects a growing recognition that biodiversity is also an economic asset that underpins entire industries, from agriculture and fisheries to pharmaceuticals and tourism.
While the new nature finance commitments mark a significant step forward, reports highlight gaps in conservation effectiveness. A UNEP-WCMC report last year found that:
- 17.6 percent of global land and 8.4 percent of ocean areas are protected, with progress increasing by just 0.5 percent since 2020.
- 20 percent of the most critical biodiversity areas are fully protected.
- 1.3 percent of global waters and 5 percent of protected lands have undergone conservation management assessments.
- Connectivity between protected areas is weak, limiting the ability of ecosystems to thrive.
These figures suggest that while the financial pledges from COP16 are welcome, they must be accompanied by strong governance, effective conservation management, and corporate participation to maximise their impact.
The COP16 agreement is a call to action for businesses to align their operations with biodiversity protection. Finance for nature should be an integral part of corporate sustainability strategies, influencing supply chain decisions, investment priorities, and ESG reporting.
Businesses must:
- Assess their impact on biodiversity and develop clear strategies to reduce harm and restore ecosystems.
- Engage in nature-positive financing, supporting conservation projects and sustainable land use.
- Collaborate with governments and NGOs to drive collective action towards global biodiversity targets.
Final thoughts
The historic nature-based finance commitments made at COP16 are a step in the right direction, but funding alone will not solve the biodiversity crisis. Businesses must take an active role in biodiversity protection to mitigate risk and seize the economic opportunities of a nature-positive future.Â
However, possessing the right knowledge and tools is an important first step to integrating biodiversity into business strategy. Our Certificate in Business with Biodiversity course provides professionals with practical insights into biodiversity conservation, nature-based solutions, and ESG frameworks. Enrol today and take the lead in protecting ecosystems, securing your business’s future in a nature-positive economy.
