Biodiversity fund meant to raise billions has collected $7,085

A fund created to raise billions of dollars for nature by charging companies that profit from genetic data has collected just $7,085 since it began operating, Dawn reported, citing AFP. It is a sluggish start for a fund meant to be a showcase for innovative financing.

The Cali Fund was agreed at the COP16 biodiversity summit in Cali, Colombia, in late 2024 and began operating in February 2025. Its designers spoke of raising one billion dollars a year. Its future is now under discussion at the COP17 biodiversity talks in Yerevan, Armenia, which run until October 30.

How it is meant to work

The fund targets digital sequence information (DSI), data derived from the genetic resources of plants, animals, fungi, viruses and micro-organisms that is freely available in online databases. Companies use it to develop medicines, cosmetics and better crops.

• The ask: pharmaceutical, cosmetics, biotechnology and plant and animal breeding firms should pay 1 percent of annual profits, or 0.1 percent of turnover
• The idea: those who benefit from nature’s genetic data should help protect biodiversity and the local communities who preserve it
• The catch: the fund is not legally binding; it only invites governments to encourage companies to pay

Who has paid

Only three companies have contributed so far:

• TierraViva AI (Britain): $1,000
• Prozomix (Britain): $5,000
• E-BIOM (Belgium): $1,085

Two others have pledged a further $3,571.

Why companies are holding back

The mechanism “still relies very heavily on incentives and voluntary contributions,” said Juliette Landry of the Paris-based think tank IDDRI. “As long as these incentives are not strong enough and consistent across countries, a company may well ask why it should contribute when its competitors are not doing so.”

Pakhi Das, a public policy adviser at the NGO Plant-for-the-Planet, said no country currently had a law encouraging contributions to the fund, and none was discussing one.

“The main hurdle that companies seem to be raising is ensuring there are safeguards in place for how their funding will be used,” said Vishaish Uppal of WWF-India. Companies also want assurance that the fund’s international payment certificates will be accepted at home so they do not pay twice.

“The level of participation in the Cali Fund reflects ongoing questions about the design and implementation of the mechanism, rather than a lack of commitment to biodiversity,” said Guilherme Cintra of the International Federation of Pharmaceutical Manufacturers and Associations.

Not the only shortfall

The trickle of money highlights how hard it is to raise funds for biodiversity. Ahead of the COP17 talks, UN Secretary-General Antonio Guterres warned that many of the world’s 2030 nature targets were off track, saying: “There is progress, but not enough.”

Why it matters

The fund was meant to make companies that profit from nature pay towards protecting it. Unless governments make payment compulsory, the Cali Fund risks becoming a symbol of promises without cash. Read our report on the UN’s warning on nature targets.

This article draws on reporting by Dawn and AFP.