Share
Facebook Facebook icon Twitter Twitter icon LinkedIn LinkedIn icon Email

Brain Circuits

6 things you need to know about the Cali Fund 

Published 25 March 2025 in Brain Circuits • 3 min read

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.

 

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.

 

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.

Authors

Adrian Dellecker

Adrian Dellecker

Senior Researcher and Writer at IMD

Adrian is a political scientist, environmental advocacy expert and innovator. He previously worked as Head of Strategy and Development at the Luc Hoffmann Institute, and has driven and managed a large number of innovative projects and ventures for environmental conservation. He is passionate about helping conservation generate new revenue streams and new audiences to help reverse current trends, and build a future for his and all the world’s children to thrive on a healthy planet. Before joining the institute he was Head of Policy and Advocacy in WWF International’s Global and Regional Policy Unit from 2008 to 2016.

Related

Learn Brain Circuits

Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Go on - they only take five minutes.
 
Read more 

Explore Leadership

What makes a great leader? Do you need charisma? How do you inspire your team? Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk.
 
Read more

Join Membership

Log in here to join in the conversation with the I by IMD community. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises.
 
Sign up
X

Log in or register to enjoy the full experience

Explore first person business intelligence from top minds curated for a global executive audience