Cali Fund, launched at COP16, ensures fair benefit-sharing from Digital Sequence Information (DSI) to support biodiversity conservation.
Contents
- 1 Introduction
- 2 What is Digital Sequence Information (DSI)?
- 3 Purpose of the Cali Fund
- 4 The Evolution of Benefit-Sharing & the Cali Fund
- 5 Impact and Significance of the Cali Fund
- 6 Why the Cali Fund Matters for IAS Aspirants
- 7 To get free counseling/support on UPSC preparation from expert mentors please call 9773890604
Introduction
The Cali Fund is a groundbreaking global financial mechanism introduced during the 16th United Nations Biodiversity Conference (COP16) in Cali, Colombia, in 2024. Designed to ensure equitable benefit-sharing from the commercial use of Digital Sequence Information (DSI) on genetic resources, this initiative plays a vital role in biodiversity conservation.
What is Digital Sequence Information (DSI)?
Digital Sequence Information (DSI) refers to digital representations of genetic material, including DNA and RNA sequences. Various industries, such as pharmaceuticals, biotechnology, agriculture, and cosmetics, leverage DSI for research, innovation, and product development. Despite being derived from natural genetic resources, the financial benefits of DSI often do not reach the local communities and indigenous groups that have preserved these resources for generations.
Purpose of the Cali Fund
The Cali Fund is established to bridge this gap by ensuring that industries profiting from DSI contribute financially to biodiversity conservation and local communities. The mechanism mandates that companies using DSI for commercial purposes contribute:
✅ 1% of their profits OR 0.1% of their revenue to the fund.
How the Cali Fund Works
- Managed by the United Nations, ensuring transparency and accountability.
- At least 50% of resources go to Indigenous Peoples and local communities, focusing on women and youth.
- Ensures fair compensation to those safeguarding biodiversity-rich regions.
The Evolution of Benefit-Sharing & the Cali Fund
For decades, international agreements like the Convention on Biological Diversity (CBD) and the Nagoya Protocol (2010) emphasized Access and Benefit-Sharing (ABS). However, these treaties did not explicitly regulate DSI, leading to global disputes over its commercial use.
The Cali Fund (2024) marks a historic breakthrough by creating the first-ever global framework for financial contributions from industries using DSI. This initiative addresses concerns that high-income nations and corporations have been profiting from genetic resources without compensating the communities preserving them.
Impact and Significance of the Cali Fund
The Cali Fund is a game-changer in biodiversity finance and corporate accountability. By linking corporate profits with biodiversity protection, it creates a sustainable funding model for environmental conservation. The fund:
🔹 Ensures economic benefits from genetic discoveries are shared.
🔹 Strengthens the role of Indigenous Peoples and local communities in biodiversity efforts.
🔹 Encourages global cooperation to protect genetic resources.
Why the Cali Fund Matters for IAS Aspirants
COPs (Conference of the Parties) are crucial for the UPSC exam. Every year, at least one question is expected on climate and biodiversity COPs. It’s essential to go beyond surface-level facts and understand:
✔️ Key programs and initiatives under each COP
✔️ India’s commitments and policies
✔️ Involved agencies and implementation frameworks
The Cali Fund is not just a financial mechanism; it is a global step towards environmental justice. As biodiversity conservation continues to be a priority, this initiative sets a precedent for equitable benefit-sharing in the era of digital genetics.
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