COP16: The global nature summit that should be on everyone’s radar

In October, the world’s attention will turn to Colombia, one of the most biodiverse countries in the world[1], as it hosts the 16^th Conference of Parties to the Convention on Biological Diversity (CBD), also known as ‘COP16’. Global leaders, environmentalists, policymakers, and the business and financial community will gather to address one of the most pressing issues of our time – the protection and restoration of nature.

The location is symbolic. Colombia is a country that has hugely diverse ecosystems – from Amazonian rainforests to Andean highlands. Amazingly, despite having just 1% of the world’s land mass[2], the country is home to 10% of the planet’s species. It has a deep history in environmental stewardship and a wealth of knowledge that we can all learn from as we work to transition our lives to live in harmony with nature.

Why COP16 matters and what it will cover

At first glance, international summits like COP16 might seem abstract, or even irrelevant, to your daily life and business operations. Nothing could be further from the truth. This is an ‘implementation’ COP, where decisions made will shape the trajectory of our relationship with nature, influencing the future of our economies and planet.

As we have outlined in our Framework, nature is the foundation in which our global economy rests. More than half of global GDP[3] (55% or $58 trillion) is moderately or highly dependent on nature through its provision of assets and ecosystem services. Yet we treat nature as a disposable commodity that has no value. As a result, our natural world is in crisis. The outcomes of COP16 will have profound implications for not only the natural world, but also for corporate and financial operations and for the long-term health of our global economy.

The global meeting will build on the success and momentum of the landmark agreement – the Global Biodiversity Framework (GBF or ‘Biodiversity Plan’) – that was finalised in Montreal in 2022. The GBF is ambitious, centred around four goals for 2050 and 23 targets for 2030 (with two interim targets in 2025). These targets include a key commitment to protect 30% of the planet’s lands, inland waters, coastal areas, and oceans. Additionally, the framework includes goals to reduce harmful subsidies, cut food waste, and increase financial resources for biodiversity conservation.

As we have said, COP16 will be very focused on taking practical steps to implement the GBF. Key areas that will be covered include:

Mobilising and bolstering implementation

• Resource mobilisation – There will be a strong focus on ways to mobilise capital for nature, particularly how public and private finance can work together closely through blended finance mechanisms. The goal agreed in the GBF is to raise $200 billion annually by 2030 (short of the $700 billion financing gap), and a desire not to take on more debt. Discussions will include scaling funding through the Global Biodiversity Framework Fund within the Global Environment Facility.
• Voluntary adoption – Some 400 organisations have adopted the Taskforce on Nature-related Financial Disclosures (TNFD) early, including Legal & General. We are expecting another batch of organisations that are willing to start to assess, manage and disclose their nature-related risks and opportunities, impacts and dependencies.
• Climate and nature nexus – We are expecting greater action in deepening the climate-nature nexus to best protect natural climate solutions and balance the potential trade-offs in ambitions.

National action

• National Biodiversity Action Plans (NBSAP) – Signatories to the GBF are expected to submit their NBSAP outlining how they are taking a whole-of-government approach to implementing its goals and targets. Within this, there will be a focus on reviewing progress and ambitions outlined in the submitted NBSAPs and holding parties to account. It would appear many countries are far behind in their submissions at the time of writing. As such, we expect action on a robust monitoring and accountability mechanism.

Benefit sharing

• Fair and equitable access and benefit sharing (ABS) – Improving and operationalising fair and equitable access and benefit sharing of genetic resources will be high on the agenda. This is driven by the Nagoya Protocol and particularly relevant for emerging markets. One option being tabled is some form of corporate levy on firms that utilise digital sequence information on genetic resources. Any levy would likely be voluntary but highly relevant for the pharmaceutical, biotech and agricultural sectors.
• Indigenous rights – There will be a focus on ensuring how to more effectively leverage the knowledge and experience, boost participation, and protect Indigenous rights and local communities.

While we are expecting the above to be covered, we believe there is significant areas still to be resolved and in our next blog we will cover the priorities we will be discussing with policymakers and stakeholders.

[1] Source: Convention on Biological Diversity

[2] Source: World Vision

[3] https://www.pwc.co.uk/issues/esg/now-for-nature.html