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COP 16: A Hopeful Start Ends in Disappointment with Key Finance Agreements Delayed
CALI, COLOMBIA – The 16th Conference of the Parties (COP 16) has concluded, leaving behind a mixed legacy of both progress and concern. While important agreements to support biodiversity were achieved, they failed to reach consensus on key issues related to finance. COP 16 suspended without the adoption of a resource mobilization strategy to scale up finance for biodiversity and mainstream biodiversity in the financial planning of governments.
As COP 16 convened with some sense of optimism, important milestones were achieved, including enhanced recognition of alignment of financial flows with the biodiversity goals and increased participation from finance ministers and central banks. However, critical discussions on nature financing were postponed due to a lack of negotiators available to make decisions. A setback that according to CEO of Storebrand Asset Management, Jan Erik Saugestad, threatens to undermine confidence in the Global Biodiversity Framework (GBF) and its objectives.
Storebrand AM has been co-chairing the Finance for Biodiversity Policy Working Group over the past three years, representing 190 financial institutions in the negotiations. During this period coalition has urged world leaders to take immediate action and create the necessary frameworks and incentives that will empower the financial sector to drive positive change for nature.
“Despite Colombia’s leadership and tireless work of many negotiators to find consensus, this outcome jeopardizes the implementation of the framework”, he comments.
There was, however, notable progress in some areas. One was the launch of the “Cali Fund,” a global mechanism designed to share benefits derived from digital sequence information (DSI) on genetic resources. This initiative will see industries reliant on DSI, such as pharmaceuticals and agriculture, contribute a portion of their profits to support developing countries and Indigenous communities.
Another significant outcome was the establishment of a permanent body under the Convention aimed at enhancing the participation of Indigenous Peoples and local communities in biodiversity efforts. This new body will integrate traditional knowledge and perspectives into biodiversity policies, aligning conservation with the rights and contributions of these communities.
Low number of national transitions plans a concern
The low number of national strategies that are submitted remains a concern.
“The success of the GBF relies on national implementation. We have advocated for governments to develop ambitious transition plans, and that they should require financial institutions and companies to develop their own. We need a whole of government approach. Strong reporting requirements and actionable transition plans from both corporates and governments is needed”.
As of the conclusion of COP 16, 44 revised National Biodiversity Strategies and Action Plans (NBSAPs) were submitted, along with 119 Parties submitting revised National Targets. This represents around 63% of countries, marking a positive increase from less than half prior to the COP.
Closing the finance gap for the health society and the economy
Storebrand AM, remains committed to supporting governments in closing the finance gap.
“Closing the finance gap is not merely some moral obligation but necessary for the health of both society and the economy. Although we welcome the fresh wave of financial commitments made in Cali, these will be insufficient to bridge the nature gap as we have highlighted ahead of COP 16. Resource mobilization strategy remains a key issue, and we need finance ministers to pay more attention to nature”
“The clock is ticking, and we must act faster and more forcefully than today. To transform the economic system is hard, to prioritize nature may be challenging, to cut nature negative subsidies may be difficult, hurt growth and even have social consequences. It takes bold leadership”, Saugestad concludes.
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The clock is ticking, urgent action must prioritize.
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Financing climate oriented projects should be given key priority
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This setback could hinder efforts to address climate change effectively, highlighting the need for more timely and decisive action from all parties involved.
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This all started with promises, but delays in key finance agreements feel like a missed opportunity. Effective climate action requires timely financial support, especially for developing nations. Let's hope leaders prioritize these commitments soon..
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The world cannot afford the luxury of postponed agreements while people are drowning, burning, and struggling for survival. Will global leaders finally learn, or are we set for more conferences of empty promises?