The UN Climate Change Conference (COP29) opened in Baku, Azerbaijan, last week. With nature and biodiversity among the key themes on today’s programme, what focus might discussions take in light of outcomes from the UN Biodiversity Conference (COP16)?
Background
Earlier this month in Cali, Columbia, COP16 came to an abrupt end after a quorum was lost due to the early departure of many delegates.[1] Although COP16 saw unprecedent engagement from the private sector and had substantial wins for Indigenous Peoples, the mobilisation of funding remains an area of challenge.
COP16 aimed to review progress made on the Kunming-Montreal Global Biodiversity Framework (the Biodiversity Framework) adopted at COP15 and build on this further. The Biodiversity Framework outlined four long-term global biodiversity goals and 23 targets aimed at halting and reversing nature loss.[2]
Key outcomes from COP16
A significant achievement at COP16 was the launch of a global fund, named the “Cali Fund”. Large businesses in industries that commercially benefit from genetic data (such as pharmaceutical, biotechnology, animal and crop breeding) are expected to contribute based on their profits or revenue.[3] The Cali Fund is projected to generate more than £1bn annually, with proceeds directed toward nature protection and restoration, and the needs of Indigenous Peoples and local communities.[4]
Some have raised concerns about the fund being voluntary, that payment rates are indicative only and that there is no longer an obligation for entities to prove they do not use genetic data. Additionally, COP16 established a new permanent body representing Indigenous Peoples and local communities, empowering their decision making.[5]
The most significant challenge at COP16 was advancing the Biodiversity Framework’s Target 19, which calls for the mobilisation of at least $200bn a year from all sources for biodiversity by 2030.[6] This includes a commitment to allocate at least $20bn per year to developing countries by 2025, rising to $30bn per year by 2030. Delegates were unable to reach an agreement, however, on how to directly channel these funds and so the specifics around the distribution of resources is yet to be clarified.[7] In another step forward, delegates also pledged an additional $163m to the flagship Global Biodiversity Framework Fund, bringing total funding to just under $400m – albeit short of the target set.[8]
A further impasse was the failure to reach a consensus on the creation of universal monitoring metrics to track the progress of the Biodiversity Framework targets.[9] Although a draft monitoring framework was produced, it is, as yet, unapproved.[10] Agreements to mobilise the funding and monitoring framework have now been postponed to an interim meeting in Bangkok next year.
Predictions for COP29
COP16 highlights how difficult it is to align financial commitments with actionable plans. Biodiversity and climate change are intrinsically linked, given the vital role of nature habitats in carbon storage and the way climate change impacts nature habitats.[11] COP29 should incorporate the outcomes of COP16 and emphasise that protecting and improving biodiversity is equally as important as reducing carbon emissions.[12]
As COP29 has been dubbed the “finance COP”, we can expect a continued focus on investment in biodiversity and nature restoration.[13] However, the challenges faced in securing biodiversity finance at COP16 suggest that similar obstacles may arise at COP29, particularly when discussing progress on the New Collective Quantified Goal for climate finance.[14]
The record level of participation from the private sector at COP16 highlighted its willingness to invest. However, it is waiting for further development of the biodiversity credit market,[15] nature transition plans, and consistent metrics before moving forward.[16] In a similar vein, discussions on carbon pricing and trading schemes are expected to play a vital role in encouraging a greater private sector engagement.[17]
For more insight, read our article on the themes at the forefront of COP29 that will be relevant to businesses and individuals alike. You can also read more about the theme of nature and biodiversity and why it’s topping boardroom agendas in our ‘a climate for nature’ series of Q&A articles.
[1]https://www.theguardian.com/environment/2024/nov/03/cop16-ends-in-disarry-and-indecision-despite-biodiversity-breakthroughs
[2] https://www.cbd.int/gbf/targets
[3] https://www.un.org/sustainabledevelopment/blog/2024/11/biodiversity-cop-16-important-agreement-reached-towards-goal-of-making-peace-with-nature-2/
[4] https://www.theguardian.com/environment/2024/nov/03/cop16-ends-in-disarry-and-indecision-despite-biodiversity-breakthroughs
[5] https://www.gov.uk/government/news/cop-16-concludes-uk-back-on-the-global-stage-urging-action-on-nature-recovery-and-supporting-30by30-goals
[6] https://www.cbd.int/gbf/targets
[7] https://www.iied.org/historic-platform-for-indigenous-peoples-finance-failure-cop16
[8] https://www.thegef.org/what-we-do/topics/global-biodiversity-framework-fund
[9] https://www.cbd.int/conferences/2024
[10] https://www.cbd.int/doc/c/53a2/9483/b5a9d4084465052fcca69d94/cop-16-wg1-crp-11-en.pdf
[11] https://www.rspb.org.uk/whats-happening/news/what-is-cop
[12] https://www.newcivilengineer.com/latest/motts-technical-director-cop16-showed-biodiversity-has-a-seat-at-the-global-infrastructure-table-07-11-2024/
[13] https://loupedin.blog/2024/10/cop16-how-will-the-global-conference-drive-change-on-biodiversity/
[14] https://www.iied.org/historic-platform-for-indigenous-peoples-finance-failure-cop16
[15] https://www.wri.org/insights/biodiversity-credits-explained
[16] https://www.wri.org/news/statement-cop16-biodiversity-summit-concludes-some-progress-major-work-remains and https://www.durham.ac.uk/departments/academic/geography/about-us/news/cop16-the-worlds-largest-meeting-to-save-nature-has-ended-with-no-clear-path-ahead/#:~:text=Private%20investors%2C%20pension%20funds%2C%20the,transparent%20means%20of%20reporting%20progress.
[17]https://gowlingwlg.com/en-gb/insights-resources/articles/2024/what-is-cop29-focused-on-and-what-do-businesses-need-to-know
About the author(s)
Emma is a senior associate in Gowling WLG's planning and environment team with a broad depth of experience in planning and environmental law. She has experience in both the non-contentious and contentious elements of planning and environmental law.
Emma Cartledge-Taylor
Emma is a senior associate in Gowling WLG's planning and environment team with a broad depth of experience in planning and environmental law. She has experience in both the non-contentious and contentious elements of planning and environmental law.