THE COP 16 on Biodiversity, held in Cali, and the Climate COP 29, based in Baku, shared the same central challenge: the financing. We were present at both and came back with valuable insights in the luggage. We will share everything with you. Are you coming with us?
COP 16: How to finance biodiversity conservation and restoration?
Two years ago, in COP 15 Montreal, the 196 signatory countries of the Convention on Biological Diversity (CBD) signed the Global Biodiversity Framework (GBF), with ambitious commitments to halt and reverse global biodiversity loss, including expanding protection of 30% of terrestrial and marine areas by 2030. In Cali, the challenge was to answer: as and with what money?
The financing dominated the debates and once again exposed the tug-of-war between developed and developing economies. The impasse was so significant that the meeting had to be suspended due to a lack of quorum and will only resume between February 25th and 27th in Rome. Meanwhile, doubts remain as to whether a new mechanism to finance these initiatives will be approved. Brazil, for example, advocates the creation of a new biodiversity fund, since the current one is below the Global Environment Facility (GEF), a structure of the World Bank, and deals with the low representation of developing economies – which concentrate most of the planet's biodiversity.
In the meantime, let's get to the good news!
Progress and achievements of COP 16
- Participation of indigenous peoples, local communities and Afro-descendants: a subsidiary body was approved that guarantees the permanent participation of indigenous people and local communities in CBD decisions. Furthermore, for the first time, the role of Afro-descendant communities – including quilombolas in Brazil – in the conservation and sustainable use of nature was officially recognized. This progress had a strong contribution from Brazil and reinforces opportunities to deepen social aspects related to conservation and climate in the future COP 30, which will be held next year in Brazil.
- Cali Fund for benefit sharing: one of the most anticipated themes was the benefit sharing generated by the use of genetic resources and the corresponding digital sequence information (DSI). The fund will enable indigenous populations and local communities to be duly compensated for their services in preserving and sharing traditional knowledge, with half of the resources being directed to them.
- Why does this matter? Companies that use a country's genetic heritage of biodiversity must pay for it, in accordance with the Benefit Sharing principle. In the past, industries such as pharmaceuticals and cosmetics based their research on physical resources, such as açaí or guarana, and international agreements reflect this reality. However, the advance of digitalization, with the use of genetic sequences stored in global databases, has brought challenges not foreseen in these agreements. In practice, the fund will serve to share the benefits of a given piece of knowledge with those who originated it.
- Private sector in the spotlight: The striking presence of Brazilian companies in Cali was one of the surprises of the conference. Although the numbers are still modest compared to the Climate COPs, the growing participation of the corporate and financial sector signals that risks and opportunities linked to biodiversity are gaining space on business agendas.
- Why is this understanding essential? Understand the economic impacts of biodiversity loss and the business dependence on natural resources is more than a strategic necessity — it is a condition for the sustainability of the businesses themselves. It is urgent that nature is integrated to companies' financial statements, driving a paradigm shift in how its value is perceived and measured.
COP 16 reinforced how climate and biodiversity are inseparable agendas. Witnessing discussions on the importance of local biodiversity actions and the central role of indigenous peoples and local communities in this process is fundamental to our work. At Sitawi, we seek to strengthen these groups and create solutions that respect and integrate their values, traditional knowledge and worldviews, promoting positive impact in a sustainable and fair way.
With that in mind, we headed straight to Baku, where the climate agenda took center stage.
COP 29: the COP of Finance
If Cali highlighted the challenges of financing biodiversity preservation, Baku proved that money is indeed the main obstacle in negotiations. It was, more than ever, the “Financing COP”. And, from now on, they all should be.
After intense debates, it was decided that the developed world will have until 2035 to mobilize US$ 300 billion annually to support the most vulnerable nations, while the collective effort seeks to achieve the ambitious but necessary goal of US$ 1.3 trillion per year in climate finance over the same period. This decision reflects the urgency of combine different sources of resources and expand partnerships global to make this transition possible.
A global call to action
The approved text calls for all global actors — businesses, governments, financial institutions and civil society — to join forces. The goal is clear: expand funding to developing countries through a combination of public, private, philanthropic, bilateral and multilateral resources. It will also be crucial to explore alternative sources of financing, as innovative financial mechanisms that attract new investments for the climate agenda.
Although developed countries have taken the lead in this effort, committing to mobilizing at least US$ 300 billion annually, the success of this goal will depend on broad global cooperation. Only with integrated actions it will be possible to transform this promise into a reality capable of facing climate challenges effectively and equitably.
A milestone in the carbon market
Success was really down to the implementation of Article 6 of the Paris Agreement, which regulates and encourages the carbon market. More than a simple economic mechanism, the carbon market represents an essential strategy for aligning greenhouse gas (GHG) emission reduction targets with the sustainable developmentThis system promotes collaboration between countries and the private sector, allowing nations and companies to exchange carbon credits as part of their climate commitments.
Despite approval, the adoption of these rules cannot signal the conclusion of efforts, but should serve as a starting point to ensure definitions on ecosystem integrity and defend the ssocial and environmental safeguards at the design and implementation of carbon projects. Without these improvements, the credibility of carbon markets as a meaningful tool for addressing climate change remains in question.
From Baku to Belém: Paths to COP 30
With the COP 29 completed, all attention turns to the next step: the COP 30, which will be held in Belém, in Brazil. This event brings with it great expectations of advancing the agenda of implementing practical solutions for unlock the climate finance, strengthen international cooperation mechanisms and promote a fair and inclusive energy transition.
As the country with the greatest biodiversity on the planet, Brazil will have the opportunity to position synergies between climate and biodiversity at the heart of global negotiations. The urgency of addressing these agendas in an integrated manner will be essential to ensure the sustainable and fair future of the planet, highlighting the fundamental role of nature-based solutions (nbs).
Furthermore, the importance of indigenous peoples and local communities will be undeniable in this debate. Their traditional knowledge and conservation practices offer concrete examples of how align sustainable development with environmental conservation. Ensuring that their voices are heard and incorporated into decision-making processes will be an essential milestone for the success of COP 30.
With its leadership in the climate debate and its rich biodiversity, Brazil has the chance to build a solid bridge between the advances achieved in Baku and the commitments that must be made in Belém, based on what was decided in Cali. The challenge is set, but the opportunities to turn ideas into action have never been so promising.
Transition to a sustainable and fair future
THE Sitawi is prepared to play a strategic role in this process. With extensive experience in the development of innovative financial mechanisms, we connect public, private and philanthropic actors to enable concrete solutions to the most pressing environmental and social challenges. Our ability to understand different contexts and offer custom solutions allows us to meet the specific needs of each partner, always focusing on positive impact.
We understand that climate and biodiversity are interconnected agendas, especially in developing countries, and it is based on this synergy that we direct our work. We develop integrated solutions that meet global and local needs, contributing to lasting and transformative impacts.
Climate and biodiversity finance have become central pillars to enable any real transformative action. In Baku, it became clear that collaboration between public, private and philanthropic actors will be essential to achieving global goals. At Sitawi, we are working to create financial mechanisms that connect these stakeholders, translating commitments into concrete actions.
With expertise in management and direction of financial resources for initiatives that truly work towards biodiversity conservation and adaptation and mitigation of climate change, We act as a bridge between funders and local initiatives, ensuring that resources reach those who truly need them and are used effectively and transparently.
Through strategic partnerships By bringing together governmental, private, and philanthropic resources, we create solutions such as blended finance, conservation funds, financial architectures for carbon and biodiversity projects, revolving and community funds, and mechanisms for... payment for environmental services (PES), impact bonds and other innovative financial tools. Each initiative is tailored to maximize positive social, environmental and financial impact.
As the world turns to Bethlehem and the challenges of COP 30, Sitawi continues to weave pathways that unite climate, biodiversity and transformative change. We are ready to transform challenges into opportunities — and together, build a more sustainable and fair future.
