Incentivising private sector contributions to multilateral funds for the protection of biodiversity

Camila Cristancho Duarte, Agata Makowska, Juan David Merlo and Alejandro Garcia Cabrera

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Biodiversity underpins a large share of global economic activity, yet the finance available to protect it falls well short of what is needed. An estimated US$300 billion to US$1 trillion per year is required by 2030, compared with current nature conservation spending of around US$220 billion annually, more than 80% of which comes from governments. Closing this gap will require greater public spending alongside new approaches to mobilising private finance. This report examines how private sector contributions to global biodiversity funds can be incentivised and integrated into core business activity rather than treated as philanthropy. Taking the Cali Fund as its primary case study, it draws lessons for other biodiversity finance mechanisms. The Cali Fund was established under the Convention on Biological Diversity in response to the growing commercial use of digital sequence information (DSI), genetic data that is commonly accessed through open-access databases. Companies that use DSI and meet specified sectoral and financial criteria are encouraged to contribute 1% of profits or 0.1% of revenue. However, contributions are voluntary and, as of October 2026, the Fund had received five contributions totalling US$10,577. Drawing on a literature review, interviews with DSI experts and participation in DSI Informal Dialogues, the report finds that the general business case for biodiversity does not in itself create a strong incentive for companies to contribute to multilateral biodiversity funds. Experience from other international mechanisms also suggests that voluntary contributions are more likely where the contributor base is clearly defined and companies have a strong incentive to participate.

JEL-codes: F3 G3 J01 R14 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2026-10
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