The International Chamber of Commerce (ICC), the institutional representative of more than 45 million companies in over 170 countries, has formally announced its support for the "Friends of the Cali Fund" initiative, marking a significant step toward reconciling private sector interests with global biodiversity conservation targets. In a recent declaration, the ICC welcomed the initiative’s focus on fostering collaboration between governments and the private sector to address systemic barriers in the implementation of a multilateral benefit-sharing mechanism. This mechanism is designed to manage the use of Digital Sequence Information (DSI) on genetic resources, ensuring that the financial and scientific benefits derived from nature are shared equitably with the nations and indigenous communities that steward the world’s biodiversity.
The ICC’s endorsement comes at a critical juncture as the international community prepares for the 16th Conference of the Parties (COP16) to the Convention on Biological Diversity (CBD), scheduled to take place in Cali, Colombia. The "Friends of the Cali Fund" represents a coalition of parties and stakeholders committed to establishing a robust and transparent financial vehicle—the Cali Fund—that would collect and distribute contributions from users of DSI. By aligning with this initiative, the ICC seeks to ensure that the eventual framework is not only environmentally effective but also commercially viable and legally certain for businesses ranging from biotechnology and pharmaceuticals to agriculture and cosmetics.
The Context of Digital Sequence Information and Biodiversity
At the heart of this international negotiation is the concept of Digital Sequence Information. In the decades following the 1992 Convention on Biological Diversity and the subsequent 2010 Nagoya Protocol, the focus of benefit-sharing was primarily on physical genetic resources—such as rare plants or microbes found in rainforests. However, the genomic revolution has shifted the paradigm. Today, scientists and corporations rarely need physical samples; instead, they access vast, publicly available digital databases containing the DNA and RNA sequences of millions of organisms.
This technological shift created a regulatory loophole. While the Nagoya Protocol established rules for sharing benefits from physical samples, it did not explicitly cover digital data. Developing nations, which hold the majority of the world’s biological diversity, have argued that the use of DSI without compensation constitutes a form of "biopiracy." Conversely, the private sector and many research institutions have expressed concern that overly restrictive regulations could stifle innovation, delay the development of life-saving medicines, and impede climate-resilient crop research.
The multilateral mechanism discussed by the ICC and the Friends of the Cali Fund aims to resolve this tension. Rather than a fragmented system of bilateral contracts between companies and individual countries, the proposed multilateral system would create a global pool of funds, simplifying the process for businesses while ensuring a steady stream of finance for conservation.
Chronology of the Multilateral Mechanism Development
The path to the Cali Fund and the current ICC endorsement has been shaped by over a decade of intense diplomatic negotiations. Understanding the timeline is essential to grasping the stakes of the current initiative:
- 1992: The Rio Earth Summit: The Convention on Biological Diversity (CBD) is adopted, establishing the three main goals: conservation of biodiversity, sustainable use of its components, and the fair and equitable sharing of benefits.
- 2010: The Nagoya Protocol: A supplementary agreement to the CBD is adopted in Japan, providing a legal framework for "Access and Benefit-Sharing" (ABS). It focuses on bilateral agreements for physical genetic resources.
- 2016-2018: The Emergence of DSI: COP13 and COP14 see the formal introduction of DSI into the agenda as parties recognize that digital data is bypassing the Nagoya Protocol’s reach.
- December 2022: COP15 and Decision 15/9: During the UN Biodiversity Conference in Montreal, parties adopt the Kunming-Montreal Global Biodiversity Framework (GBF). Crucially, "Decision 15/9" is passed, agreeing to establish a multilateral mechanism for benefit-sharing from the use of DSI, including a global fund.
- 2023: Ad Hoc Open-ended Working Group: A dedicated working group is formed to hammer out the technical details of how the fund will collect money (e.g., via levies on products or voluntary contributions) and how it will be distributed.
- 2024: The Cali Declaration and COP16: The "Friends of the Cali Fund" initiative gains momentum, leading to the ICC’s recent statement of support ahead of the October 2024 summit in Colombia.
Private Sector Requirements for a Workable Mechanism
The ICC has articulated a clear set of criteria that the private sector believes are necessary for the multilateral mechanism to succeed. Central to their position is the need for alignment with Paragraph 9 of CBD Decision 15/9. This paragraph stipulates that any solution for DSI should be "efficient, feasible, and practical," while also avoiding the disruption of open science and research.
From the perspective of global business, the mechanism must provide "clarity and legal certainty." Currently, companies face a patchwork of national regulations regarding genetic data, which creates significant compliance risks. A unified multilateral system could replace this complexity with a predictable set of rules. However, the ICC warns against "economic distortion." If the financial contributions required from businesses are too high or structured inefficiently, it could disadvantage companies in certain jurisdictions or discourage the use of biological data altogether, ultimately harming the very innovation needed to solve environmental crises.
Furthermore, the ICC emphasizes that the mechanism must be part of a "coherent benefit-sharing landscape." This means the Cali Fund should not exist in a vacuum but must be aligned with other international instruments, such as the World Health Organization’s (WHO) Pandemic Influenza Preparedness (PIP) Framework and the high-seas treaty (BBNJ), which also contain benefit-sharing provisions.
Supporting Data: The Scale of the Bioeconomy
The economic stakes involved in DSI and biodiversity are immense. According to various economic reports, the global "bioeconomy"—sectors that rely on biological resources and data—is valued in the trillions of dollars.
- Pharmaceuticals: It is estimated that approximately 25% to 50% of all pharmaceutical products are derived from genetic resources. The global pharmaceutical market, valued at over $1.5 trillion, relies heavily on DSI for drug discovery and vaccine development.
- Agriculture: The global commercial seed market is valued at roughly $60 billion. DSI is essential for breeding crops that can withstand the impacts of climate change, such as drought and extreme heat.
- The Funding Gap: The Paulson Institute and other organizations estimate that there is a $700 billion annual funding gap for global biodiversity conservation. The Cali Fund is viewed as a primary vehicle to help close this gap by capturing a small percentage of the revenue generated by industries using DSI.
The ICC’s readiness to engage suggests that the private sector recognizes that contributing to this fund is not just a matter of corporate social responsibility, but a necessary investment in the "natural capital" that sustains their business models.
Official Responses and Stakeholder Perspectives
While the ICC represents the business community, other stakeholders have expressed a mix of optimism and caution regarding the Cali Fund.
Governmental Perspectives: Developing nations, particularly the "Like-Minded Megadiverse Countries" (which include Brazil, India, and South Africa), have welcomed the ICC’s engagement but continue to push for mandatory rather than voluntary contributions. They argue that a purely voluntary system would not generate the scale of funding required to meet the goals of the Kunming-Montreal Global Biodiversity Framework.
Civil Society and NGOs: Environmental groups have signaled that the success of the Cali Fund will depend on transparency. They advocate for a direct link between the funds collected and the indigenous peoples and local communities (IPLCs) who serve as the frontline guardians of biodiversity. The ICC’s call for "governance and practical implementation" solutions resonates with these groups, as both parties seek a system where funds are not lost to bureaucracy.
Scientific Community: Research organizations have expressed concern that any mechanism must maintain the "open access" nature of genomic databases. They argue that if researchers are forced to pay or navigate complex permits just to access sequence data, the pace of scientific discovery could slow down significantly.
Broader Impact and Future Implications
The ICC’s support for the Friends of the Cali Fund signals a shift toward a more collaborative era of environmental governance. By moving away from the adversarial "industry vs. environment" rhetoric, the ICC is positioning the private sector as a proactive partner in conservation.
The implications of an effective multilateral mechanism are profound. If the Cali Fund is successfully established at COP16, it could serve as a blueprint for other global challenges, such as carbon credits or plastic waste management. It would demonstrate that a globalized economy can internalize the costs of using natural resources, effectively putting a price on the digital value of nature to ensure its physical survival.
However, significant hurdles remain. The ICC’s statement highlights "remaining important conceptual, governance and practical implementation issues." These include determining which industries are "in scope," how to calculate contributions (whether based on revenue, profit, or data usage), and how to ensure that the distribution of funds is equitable and reaches the intended conservation projects.
As the world looks toward Cali in late 2024, the ICC’s commitment to building a "coherent, effective and workable" mechanism provides a necessary boost to the negotiations. The goal is no longer just to protect nature from business, but to ensure that business acts as a primary engine for nature’s recovery. The success of the Cali Fund will ultimately be measured by its ability to turn digital data into tangible protection for the world’s most vulnerable ecosystems, a goal that the International Chamber of Commerce has now firmly placed on its agenda.
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