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From Cali - In a significant development at the 16th Conference of the Parties (COP16) to the Convention on Biological Diversity (CBD), a new decision has been adopted to facilitate the fair and equitable sharing of benefits arising from the use of digital sequence information (DSI) on genetic resources.
The document outlines a multilateral framework to manage DSI benefits and sets up the "Cali Fund" to channel resources derived from commercial use of nature back into biodiversity conservation, especially aiding developing countries, Indigenous peoples, and local communities. This fund will receive monetary contributions from companies and sectors that derive commercial benefits from genetic sequence data. Contributors include sectors like pharmaceuticals, biotechnology, and cosmetics, expected to donate a percentage of profits or revenue depending on their scale and reliance on DSI.
The document stipulates that commercial users of DSI must share both financial and non-monetary benefits. Financial contributions are directed to the Cali Fund, while non-monetary benefits include knowledge sharing and capacity building, especially focusing on Indigenous and local communities. These contributions aim to support self-identified needs for technical development and data access, enhancing communities' ability to participate in the global biodiversity economy.
How the Cali Fund will work
The text states: “Users of digital sequence information on genetic resources in sectors that directly or indirectly benefit from its use in their commercial activities should contribute a proportion of their profits or revenue to the global fund, according to their size. Companies from pharmaceuticals, nutraceuticals (food and health supplements), cosmetics; animal and plant breeding, biotechnology; laboratory equipment associated with the sequencing and use of digital sequence information on genetic resources, that have a balance sheet dates exceed at least two out of three of these thresholds (total assets: USD 20 million Sales; USD 50 million; Profit: USD 5 million) averaged over the preceding three years, should contribute to the global fund one percent of their profits or 0.1 percent of their revenue, as an indicative rate.
To increase accessibility and accountability, the framework encourages the creation of databases that make DSI publicly available. Such databases must respect principles of open science, including transparency, accessibility, and ethical governance, aligning with frameworks like FAIR (Findable, Accessible, Interoperable, and Reusable) and CARE (Collective Benefit, Authority to Control, Responsibility, Ethics).
Reflecting the principles of the United Nations Declaration on the Rights of Indigenous Peoples, the decision acknowledges Indigenous perspectives that view genetic resources as inherently tied to Mother Earth. Moreover, at least half of the Cali Fund’s resources are earmarked for the needs of Indigenous peoples, including women and youth. This emphasis promotes gender-responsive approaches within the fund allocation to ensure equitable access for marginalized communities.
Monitoring and future developments
A Steering Committee will oversee the multilateral mechanism's implementation, comprising representatives from various sectors, including civil society, academia, and Indigenous groups. This committee will report to the COP, ensuring transparency in the Cali Fund's operation. Furthermore, a Secretariat will support the mechanism, tasked with managing data, providing reports, and facilitating Steering Committee operations.
The effectiveness of the multilateral mechanism will be reviewed at COP18. This review will analyze fund mobilization, contribution adequacy, and the mechanism’s impact on research, Indigenous rights, and biodiversity conservation. Adjustments may be made based on insights from this periodic review to ensure ongoing alignment with the Kunming-Montreal Global Biodiversity Framework and emerging technologies affecting DSI governance.
The adoption of this framework marks a significant step toward balancing open access to genetic data with equitable benefit sharing. Through mechanisms like the Cali Fund, COP16 seeks to bridge commercial interests and community rights, emphasizing the importance of sustainable biodiversity practices.
Image: Emanuele Bompan