Rome 2025 Convention on Biological Diversity (COP16)
The 16th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP16) take up in Rome, from February 25th to 27th, 2025, at the headquarters of the Food and Agriculture Organization of the United Nations. Originally held in Cali, Colombia, from October 21st to November 1st, 2024, the Conference was suspended due to unresolved critical issues. The resumed session in Rome was crucial to finalize key negotiations and reaffirm global commitments to biodiversity conservation, with significant legal and Environmental, Social, and Governance (ESG) implications.
Through the deal, wealthier countries committed to allocating at least $30 billion annually to developing countries to protect biodiversity as part of a broader plan aiming to raise $200 billion per year by 2030. This is the estimated amount needed to safeguard natural habitats without hindering development while ensuring a balance among Earth's living species and ultimately protecting human health.
The Montreal Protocol sets the goal of protecting 30% of the Earth's land surface and 50% of marine and ocean areas by 2030 (currently, only 17% of land and 8% of marine areas are protected). The agreement reached is a compromise made possible, in particular, by Brazil’s mediation on behalf of the BRICS bloc. However, deep divisions remain between the Global North and South. The decision to establish a dedicated new fund, as requested by African countries, has been postponed to 2028. Wealthy nations—led by the EU, Japan, and Canada—oppose the creation of additional funds and insist that emerging powers like China should also be included among the financial contributors.
Strengthening the Kunming-Montreal Global Biodiversity Framework and legal obligations
One of the primary goals of COP16 was the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF), adopted in 2022.
The main focus of the Convention was financing for nature conservation, following the example set at COP 29 on climate in Baku. The goal was to define the Kunming-Montreal Global Biodiversity Framework, approved in 2022 at COP 15, which in summary aims to:
- protect at least 30% of land and sea areas by 2030,
- eliminate $500 billion annually in environmentally harmful subsidies,
- strengthen ecosystem resilience by reducing the species extinction rate tenfold and increasing wildlife abundance,
- establish the Global Biodiversity Framework Fund (GBFF) to bridge the $700 billion annual financial gap needed for biodiversity conservation.
Biodiversity Financing
The agreement signed in Rome confirms the creation of an international funding stream that will increase from $20 billion annually by 2025 to $30 billion by 2030. However, the broader goal remains to mobilize $200 billion per year by the end of the decade through all possible financing channels, including national and international public funds, private investments, blended finance, and philanthropic contributions.
The management of these resources was the most complex issue to resolve. Wealthy countries pushed for the funds to be managed by the Global Environment Facility (GEF), which operates under the supervision of the World Bank and is governed primarily by donor countries. Conversely, developing and transitioning economies demanded full adherence to Article 21 of the CBD, which calls for the creation of an autonomous ad hoc mechanism managed directly by the COP.
A breakthrough was reached thanks to a proposal from Brazil on behalf of the BRICS bloc, according to which the COP will maintain full control over the governance of the new fund while keeping its operations within an existing mechanism (the GEF), in accordance with the Convention.
A final decision on its long-term structure has been deferred to future COP meetings, leaving open the possibility of moving the fund outside the GEF’s scope.
The fund will provide more stable and predictable financial access, ensuring resource distribution even to countries under international sanctions—an issue described as “discriminatory” by developing nations.
However, as of now, only $382 million has been raised for the GBFF, according to the financial mechanisms document released by COP. Donor countries include Austria, Canada, Denmark, France, Germany, Japan, Luxembourg, New Zealand, Norway, Spain, the United Kingdom, Northern Ireland, and Quebec. Italy is absent from the list, while it is worth noting that the United States has never ratified the Convention on Biological Diversity.
The launch of the "Cali Fund"
Another major development at COP 16 was the official launch of the Cali Fund. This initiative is based on the fair sharing of benefits derived from the use of biodiversity-related genetic resources and the rights of Indigenous peoples. It aims to direct profits from the commercial use of natural resources toward biodiversity conservation and the benefit of developing nations, Indigenous communities, and local populations.
The fund is primarily financed by companies using genetic resources for commercial purposes, such as pharmaceutical, biotech, and cosmetics industries. At least 50% of the collected funds will go to these groups, reinforcing the principle of equity in the use of natural resources. Additionally, the final document reiterates the goal of cutting at least $500 billion per year in biodiversity-harming subsidies by 2030.
Other decisions made in Rome
The agreement reached in Rome strengthens the planning, monitoring, reporting, and review system of the Kunming-Montreal Global Biodiversity Framework. This will allow governments to assess progress using a unified set of indicators, providing clear, aggregable, and globally comparable data.
A key aspect of the new strategy is the direct involvement of non-governmental actors, including Indigenous communities, civil society, and the private sector, which will be required to report on their contributions to the transition toward a more sustainable economy.
COP 16 also laid the groundwork for strengthened cooperation between the Convention on Biological Diversity and other multilateral environmental treaties—including the COP on climate and the COP on desertification—and established the conditions for appointing the next Executive Secretary of the Convention.
A Compromise with Key Absences
While COP16 represented a critical step forward in biodiversity governance, its effectiveness remains uncertain due to the absence of key global players, including the United States, which has not ratified the Convention on Biological Diversity. The lack of participation from such major economies raises concerns about the enforceability of the commitments made and the potential for regulatory fragmentation, with differing levels of implementation across jurisdictions. This poses challenges for multinational businesses navigating compliance obligations in multiple regions.
Additionally, while the agreements reached emphasize corporate biodiversity disclosure and stricter due diligence requirements, they may not be sufficient to address the systemic drivers of biodiversity loss, such as industrial deforestation and unsustainable agricultural practices. Without legally binding commitments from all major global economies, the risk remains that biodiversity protections will be unevenly applied, creating potential gaps in accountability and enforcement.
Next Steps: legal enforcement and ESG integration
The outcomes of COP16 reinforce the growing legal and regulatory landscape surrounding biodiversity commitments. In the coming months, governments and regulatory bodies will work to integrate COP16 resolutions into national laws, with implications for corporate legal teams, compliance officers, and sustainability professionals.
The discussions in Rome set the stage for further negotiations at COP17 in 2027, where progress on the Kunming-Montreal GBF will be assessed, and stricter compliance measures are expected to be introduced. Companies must now prepare for evolving legal frameworks governing biodiversity and enhanced disclosure requirements to ensure regulatory alignment.
Stay tuned to CMS ESG for continued insights and updates on legal developments in biodiversity and sustainability regulations.
