COP16, held in Cali, Colombia, marked an important moment in the global effort to implement the Global Biodiversity Framework (GBF). Two years after its adoption, COP16 underscored the need for decisive action, particularly in the realm of biodiversity finance. Negotiations under the banner of "Peace with Nature" centered on closing the $200 billion annual biodiversity financing gap, with mixed outcomes.

Key Outcomes and Challenges  

Biodiversity Finance: Closing the Gap

A central theme at COP16 was addressing the biodiversity financing gap, which is estimated to be around $200 billion annually by 2030. The conference made progress with the establishment of the Cali Fund for Digital Sequence Information (DSI), marking a milestone in ensuring fair financial contributions from businesses utilizing genetic data. However, the fund remains voluntary, and its effectiveness will depend on the right incentives and implementation at national level to benefit Indigenous Peoples and Local Communities.

Despite broad consensus on the need for increased biodiversity funding, disagreements over new financial mechanisms hindered progress. The lack of resolution on a dedicated fund for the GBF means that instead of focusing on implementation, the discussions will have to continue in 2025.

Reforming Environmentally Harmful Subsidies (EHS)

Target 18 of the GBF calls for the redirection of $2.6 trillion in harmful subsidies annually. COP16 saw limited advancements in this area, highlighting systemic challenges that reward short-term profits over sustainable practices. Governments and businesses must collaborate to reform EHS and realign incentives for nature-positive investments.

People-Centered Approaches

COP16 showcased the importance of cross-stakeholder collaboration. A landmark achievement was the establishment of a permanent subsidiary body under Article 8(j), recognizing the leadership role of Indigenous Peoples and Local Communities. This is a significant step in integrating traditional knowledge into global biodiversity efforts.

Business and Finance Engagement

For the first time, COP16 saw extensive participation from the business and finance sectors, showing the growing recognition of biodiversity alongside climate on corporate agendas. Initiatives like the Now for Nature Accelerator aim to scale credible nature strategies across industries. However, voluntary actions must be driven by stronger regulations to drive systemic change.

A Window of Opportunity in Europe: The EU's next Multiannual Financial Framework (MFF)

The long-term budget of the EU – the Multiannual Financial Framework (MFF) – is the high-level spending plan of the EU. The current MFF runs out in 2027, and by mid 2025 first proposals for the next MFF will be made by the EC. The preparation of the new MFF in 2025 is a critical opportunity to better integrate biodiversity finance into long-term budgeting, e.g. by an improved mainstreaming of nature restoration and nature-based solutions in the next MFF. Aligning EU funding with the GBF can set a precedent for global financial systems to prioritize nature. This is a moment for the EU to lead by example, ensuring that biodiversity finance becomes a cornerstone of its policy framework.

Ecologic Institute is actively supporting the European Commission towards an improved mainstreaming of biodiversity across sectors, e.g. through its work in the technical study Mainstreaming Climate and Environmental Objectives in EU Funding Programmes in the Post-2027 Period, commissioned by DG CLIMA and DG ENV of the European Commission. Ecologic Institute is leading the work on improved finance for nature restoration and nature-based solutions.

Biodiversity, Europe's Competitiveness and the transition towards a Nature-Positive Economy

Healthy ecosystems are essential to achieve the EU's political priorities, including its competitiveness. Ecosystems provide important services that form the backbone of many economic sectors, such as agriculture, fisheries, forestry, and tourism. These services – ranging from carbon sequestration and water purification to soil fertility and pollination – are integral to maintaining Europe's economic stability and growth. As global markets increasingly prioritize sustainability, investing in nature-positive solutions enhances Europe's ability to compete in emerging green markets, ensuring sustainable growth and securing its leadership in the global transition to a nature-positive economy.

A nature-positive economy prioritizes ecological recovery and social prosperity, aiming to halt and reverse biodiversity loss by 2030 and achieve full recovery by 2050. This framework not only safeguards the planet but also presents economic opportunities by fostering sustainable industries, creating millions of jobs, and reducing nature-related risks for businesses and communities. Nature-based solutions (NbS) and nature-based enterprises (NbE) play an important role by enhancing natural capital and supporting the transition toward sustainable practices. This transition is essential for addressing global challenges such as climate change and biodiversity loss, while simultaneously unlocking economic potential. By embedding nature-positive principles across sectors, we can drive transformative change in economic models, ensuring resilience and long-term prosperity.

Ecologic Institute is actively involved in the GoNaturePositive project, which is coordinated by Trinity College Dublin and involves 20 partners across 14 countries, represented by research institutions, non-profits and environmental organisations who are leading the nature-positive agenda at global and European levels.