6 things you need to know about the Cali Fund 

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.

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.

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.

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.

5. Shifting to nature-positive

The Fund is expected to raise roughly $1bn per year, helping corporate strategies to become nature positive.

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.