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6 things you need to know about the Cali FundÂ
Launched in February 2025, the Cali Fund of the Kunming-Montreal Global Biodiversity Framework is set to mobilize new streams of private-sector funding for biodiversity. It is expected to raise roughly $1bn per year. Adrian Dellecker sets out its business implications.
1. New mechanism for companies to fund nature conservation
Companies making commercial use of Digital Sequence Information (DSI) on genetic resources are to contribute a portion of their revenue (0.1%) or profits (1%) to biodiversity conservation. These numbers set a precedent and template for private-sector contributions to nature conservation.
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2. Targeted industry contributions
For now, specific industries highly dependent on DSI are expected to contribute, including pharmaceuticals, cosmetics, agricultural biotechnology, and AI services related to genetic resources, but the scope could increase with time.
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3. Strong accountability
The fund will be managed by a multi-partner office, with several UN agencies and governments as partners, as well as indigenous peoples and local communities, who will receive at least 50% of the funds. Companies participating can outsource the distribution of benefits to these actors.
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4. Contribution to the Global Biodiversity Framework
The Fund directly supports the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF) agreed by countries in December 2022. Contributions to the Cali Fund will go towards meeting these global targets.
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5. Shifting to nature-positive
The Fund is expected to raise roughly $1bn per year, helping corporate strategies to become nature positive.
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6. Risk management
Companies in the sectors most exposed to nature loss are expected to contribute to the Fund, thereby helping to reduce their exposure to the risks associated with natural resource depletion.
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Key takeaway
The Cali Fund is a new type of funding mechanism intended to act as a template for private-sector contributions to nature conservation and could ultimately include more companies. By aligning with the KMGBF goals, companies can not only contribute to global biodiversity conservation but also unlock new market opportunities, enhance their reputation, and ensure long-term sustainability.
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