COP16: A Global Financial Plan for Genetic Data Use

During the U.N. COP16 talks in Colombia, nearly 200 countries agreed on how firms in industries such as pharmaceuticals and cosmetics should compensate for using genetic data in R&D. The initiative aims to support nature conservation and Indigenous communities, generating significant funds directed at preserving biodiversity.

In a landmark move at the U.N. COP16 talks held in Colombia, nearly 200 countries have reached a consensus on financial mechanisms regarding the use of genetic information by companies in the pharmaceutical, cosmetic, and biotechnology sectors. The agreement seeks to channel funds generated towards conserving global biodiversity.

The deal, stemming from the Kunming-Montreal Global Biodiversity Framework, plans to direct half of the proceeds to Indigenous and local communities. By leveraging genetic data present in products like nutrient-rich rice and specially treated denim, conservation efforts are anticipated to receive a significant boost.

After intense negotiations, especially between India and Switzerland, the accord establishes a Cali fund. This fund mandates qualifying companies to contribute financially based on their revenue or profits, marking a pivotal step towards holding corporations accountable for their ecological impact.

(With inputs from agencies.)