The International Chamber of Commerce (ICC), acting as the institutional representative of millions of businesses across diverse sectors and geographic regions, has formally expressed its appreciation for the "Friends of the Cali Fund" initiative and its recent declaration. This endorsement marks a significant milestone in the lead-up to the 16th Conference of the Parties (COP16) to the Convention on Biological Diversity (CBD), scheduled to take place in Cali, Colombia. The ICC has specifically welcomed the initiative’s recognition of the critical need for collaboration with the private sector to address existing barriers to the implementation of a global multilateral mechanism for benefit-sharing. By signaling its readiness to engage with the initiative, other Parties, and various stakeholders, the ICC aims to build the necessary foundations for a coherent, effective, and workable system that meaningfully supports global biodiversity goals while maintaining the viability of commercial research and development.
As the global community grapples with the rapid loss of biodiversity, the debate over Digital Sequence Information (DSI) on genetic resources has moved to the forefront of international environmental policy. DSI refers to the digitized genetic blueprints of biological organisms, which are used extensively in industries ranging from pharmaceuticals and biotechnology to agriculture and cosmetics. The ICC’s recent statement underscores a fundamental business recognition: nature possesses intrinsic and economic value, and its conservation is a prerequisite for long-term global stability. Consequently, the business community supports the principle of fair and equitable benefit-sharing as a vital mechanism to fund the conservation and sustainable use of biodiversity.
The Evolution of the Multilateral Benefit-Sharing Mechanism
The push for a multilateral mechanism (MLM) represents a strategic shift from the bilateral approach established under the 2010 Nagoya Protocol. The Nagoya Protocol required individual agreements between users of genetic resources and the provider countries. While well-intentioned, this bilateral system has often been criticized for its administrative complexity, high transaction costs, and the legal uncertainty it creates for researchers. The emergence of DSI—where genetic information can be accessed online without the physical transfer of biological material—further complicated the Nagoya framework, leading to calls for a more streamlined, global approach.
The current momentum follows the landmark CBD Decision 15/9, adopted during COP15 in Montreal in December 2022. This decision established a process to develop a multilateral mechanism for benefit-sharing from the use of DSI, including a global fund. The "Cali Fund," named in anticipation of the upcoming summit in Colombia, is envisioned as the financial vehicle that will collect and distribute benefits—likely in the form of monetary contributions from commercial users—to support biodiversity conservation, particularly in the Global South, where much of the world’s genetic diversity is concentrated.
Chronology of Key Developments Leading to the Cali Declaration
The journey toward a global DSI mechanism has been marked by intensive negotiations and a growing recognition of the role of digital data in modern science.
- December 2022 (COP15, Montreal): Parties agreed to Target 13 of the Kunming-Montreal Global Biodiversity Framework (GBF), which calls for the fair and equitable sharing of benefits from genetic resources and DSI. Decision 15/9 was adopted, creating a path for a multilateral mechanism.
- 2023 – Early 2024: An Ad Hoc Open-ended Working Group on Benefit-sharing from the Use of DSI was established. Multiple meetings in Geneva and Montreal focused on defining the scope, triggers for payment, and governance of the proposed global fund.
- August 2024: The "Friends of the Cali Fund" initiative gained traction. This coalition of countries and stakeholders issued a declaration seeking to bridge the gap between divergent national interests and the private sector’s operational realities.
- October 2024 (Upcoming COP16): The summit in Cali is expected to finalize the modalities of the mechanism, making the ICC’s current stance a pivotal contribution to the final stages of negotiation.
Core Business Requirements for a Functional Mechanism
For the private sector, the success of the Cali Fund depends on its practical application. The ICC has outlined several non-negotiable criteria to ensure the mechanism does not inadvertently stifle the very innovation that could provide solutions to the biodiversity crisis.
First, the ICC emphasizes alignment with Paragraph 9 of CBD Decision 15/9. This paragraph stipulates that any solution should be efficient, feasible, and not hinder research and innovation. It also stresses that the system should be "proportionate," meaning the financial obligations imposed on companies must not outweigh the economic benefits derived from the DSI or create a barrier to entry for small and medium-sized enterprises (SMEs).
Second, the issue of "legal certainty" is paramount. Businesses require a clear understanding of when payments are triggered and to whom they are owed. A major concern for the ICC is the potential for "double payment" or overlapping jurisdictions, where a company might be asked to pay into the global Cali Fund while also facing benefit-sharing claims from individual nations under domestic laws. To avoid this, the ICC advocates for a coherent benefit-sharing landscape where international and national instruments are harmonized.
Third, the mechanism must avoid economic distortion. If the cost of using DSI becomes too high in certain jurisdictions or for certain types of data, it could lead to a "chilling effect" on genomic research. This is particularly concerning for the development of vaccines, climate-resilient crops, and sustainable bio-based materials.
Supporting Data: The Economic and Biological Stakes
The scale of the biodiversity crisis provides the backdrop for these negotiations. According to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), approximately one million species are currently threatened with extinction. The economic value of ecosystem services—such as pollination, water purification, and carbon sequestration—is estimated at $125 trillion to $140 trillion per year, more than 1.5 times the size of global GDP.
In terms of the financial potential of DSI, estimates vary widely, making the ICC’s call for a "workable" mechanism even more critical. Some studies suggest that the sectors most reliant on DSI—including pharmaceuticals, seed industry, and industrial biotechnology—generate combined annual revenues exceeding $1.5 trillion. If a benefit-sharing levy were set at even 0.1% of revenue for products derived from DSI, the Cali Fund could theoretically see hundreds of millions, if not billions, of dollars annually. However, the ICC warns that such figures must be balanced against the high costs of R&D and the fact that most DSI use does not result in a direct commercial product.
Stakeholder Reactions and Geopolitical Dynamics
The ICC’s proactive stance has been met with a mix of optimism and caution from other stakeholders. Developing nations, often represented by the G77 and China, have historically pushed for mandatory, high-percentage contributions to the fund, arguing that the Global North has benefited from "digital biopiracy" for decades. For these nations, the Cali Fund is a matter of climate and biological justice.
In contrast, many developed nations and scientific organizations emphasize the importance of "Open Access." They argue that DSI must remain freely available in public databases like GenBank to facilitate rapid scientific responses, such as the development of COVID-19 vaccines, which relied heavily on the rapid sharing of the SARS-CoV-2 viral sequence.
The "Friends of the Cali Fund" initiative acts as a diplomatic bridge. By including the private sector in the conversation, the initiative acknowledges that without corporate buy-in, the fund will likely remain underfunded and unenforceable. The ICC’s willingness to engage suggests that a middle ground—perhaps involving a combination of voluntary contributions and standardized, low-friction mandatory fees for certain commercial sectors—is being explored.
Analysis of Implications for Global Research and Innovation
The outcome of the Cali negotiations will have profound implications for the future of the "bio-economy." If the multilateral mechanism is successfully implemented, it could provide a stable, predictable stream of funding for conservation projects worldwide, helping to meet the $200 billion annual funding gap for biodiversity identified in the GBF.
However, if the mechanism is poorly designed, it could lead to a fragmented global system. Researchers might shift away from using genetic sequences from biodiverse regions to avoid legal entanglements, or companies might reduce their investment in biodiversity-linked R&D. The ICC’s emphasis on "clarity" is a direct response to these risks. A successful Cali Fund must ensure that the "sharing of benefits" does not become a "tax on science."
Furthermore, the governance of the fund remains a point of contention. The ICC and its members are advocating for a transparent governance structure where the private sector has a seat at the table, ensuring that the funds are actually used for on-the-ground conservation and sustainable use, rather than being absorbed by administrative overhead.
Looking Ahead to COP16 in Cali
As the international community prepares for the October summit, the ICC has signaled its intent to work closely with the Friends of the Cali Fund and other Parties. The focus will remain on addressing "remaining important conceptual, governance, and practical implementation issues." These include defining the exact "triggers" for benefit-sharing—whether it should be based on the use of the data itself, the commercialization of a product, or a general sector-wide levy.
The ICC’s message is clear: the private sector is not an obstacle to biodiversity conservation but a necessary partner. By supporting a multilateral mechanism that is "effective in contributing to biodiversity goals and workable in practice for all concerned," the ICC is championing a model where economic growth and environmental stewardship are mutually reinforcing. The success of the Cali Fund will ultimately be judged by its ability to turn digital genetic data into tangible protection for the world’s most vulnerable ecosystems, a goal that the ICC believes is achievable through genuine collaboration and legal pragmatism.
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