Nearly 200 nations convened in Cali with the goal of implementing the 2022 Kunming-Montreal Global Biodiversity Framework agreement, which aims to halt the rapid decline of nature by 2030. This new payment system could potentially generate billions of dollars for nature conservation initiatives, with half of the proceeds directed to Indigenous peoples and local communities.

Genetic data from biodiversity is utilized in various products, from nutrient-enriched rice to stone-washed denim jeans made using enzymes sourced from microbes.

This agreement follows the establishment of a permanent body for Indigenous and local communities to officially participate in U.N. nature decisions, alongside recognition of the contributions of Afro-descendant communities to conservation efforts.

Despite initial disagreements—particularly between India and Switzerland—that extended negotiations into the early hours, the measure was ultimately adopted. Companies in industries such as pharmaceuticals, cosmetics, and biotechnology will be required to make payments for their use of genetic material.

"Businesses are committed to supporting biodiversity goals and have been actively engaged throughout this process," stated Daphne Yong-D'Herve, an expert on genetic information from the International Chamber of Commerce.

The fund, named the Cali Fund in honor of the COP16 host city, will be financed through contributions from qualifying companies, which are expected to pay either 0.1% of their revenue or 1% of their profits.

"The clear signal sent by COP16 today is that large corporations must pay back their dues for nature protection," emphasized Glenn Walker, head of the nature program at Greenpeace Australia Pacific.