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The Cali Fund is the global fund of the multilateral mechanism for sharing benefits from digital sequence information (DSI) on genetic resources under the Convention on Biological Diversity (CBD). Decision 16/2, adopted by the Conference of the Parties (COP 16) on 1 November 2024, names it the “Cali Fund for the Fair and Equitable Sharing of Benefits from the Use of Digital Sequence Information on Genetic Resources” (paragraph 2 of the decision). It asks commercial users of DSI to contribute to a pooled fund, while public databases and public research and academic institutions are not expected to make monetary contributions.
What it is and who runs it
The decision links fair and equitable sharing of benefits from DSI to Goal C and Target 13 of the Kunming-Montreal Global Biodiversity Framework. Under Annex paragraph 23, the fund is administered by the United Nations through the Multi-Partner Trust Fund Office and operates under the authority of, and is accountable to, the Conference of the Parties. A Steering Committee is established by the COP; its composition includes representatives of Parties, indigenous peoples and local communities, civil society, academia and entities operating public databases, the private sector, and the United Nations system.
Because the mechanism is pooled, it does not require tracking each individual sequence download. That matters in biology, where much work starts from sequences retrieved from public databases rather than from a physical sample. The decision states that the mechanism covers DSI that is publicly available and not subject to mutually agreed terms that restrict its free availability (Annex paragraph 1).
Who is expected to contribute
As stated in Decision 16/2 and checked on 2026-11-07, users of DSI in sectors that directly or indirectly benefit from it in their commercial activities should contribute a proportion of their profits or revenue, according to their size (Annex paragraph 3). Entities that exceed at least two of three thresholds, averaged over the preceding three years, should contribute:
- Total assets: 20 million United States dollars.
- Sales: 50 million United States dollars.
- Profit: 5 million United States dollars.
The indicative rate is 1 per cent of profits or 0.1 per cent of revenue. Annex paragraph 4 adds that the COP will establish thresholds and contribution rates at its seventeenth meeting and review them periodically, so these figures should be re-checked against the latest COP decisions.
Enclosure I gives an indicative list of sectors: pharmaceuticals; nutraceuticals (food and health supplements); cosmetics; animal and plant breeding; biotechnology; laboratory equipment associated with sequencing and use of DSI, including reagents and supplies; and information, scientific and technical services related to DSI, including artificial intelligence. Annex paragraph 5 states that the contribution provision does not apply to entities in those sectors that do not use DSI.
Annex paragraph 9 states: “Entities operating public databases and public research and academic institutions are not expected to make monetary contributions to the global fund.”
What it funds
- Purposes: Funding should support the objectives of the Convention in developing country Parties, especially least developed countries, small island developing States and Parties with economies in transition, including conservation and sustainable use of biodiversity through national biodiversity strategies and action plans, scientific research on biodiversity, and capacity-building for generating, accessing, using, analysing and storing DSI (Annex paragraph 18). This connects to work in conservation biology.
- Indigenous peoples and local communities: Where appropriate and subject to national circumstances and legislation, at least half of the funding of the global fund should support the self-identified needs of indigenous peoples and local communities, including women and youth (Annex paragraph 21).
- Allocation: Funding is to take into account the overall funds available and an indicative list of criteria in Enclosure II; a formula is to be determined by the COP at its seventeenth meeting (Annex paragraph 19).
- Open data governance: Databases that make DSI publicly available should, for data governance, be consistent with open access to data, taking into consideration the FAIR, CARE and TRUST principles (Annex paragraph 10(d)). They should also require information on the country of origin of the genetic resources, where known (paragraph 10(c)). Research data services such as CyVerse for plant biology sit in this wider open-data context.
How contributions work
- Contributions are expected to be made directly but may be made through a national authority, and receipts are issued at the point of contribution (Annex paragraph 14).
- For each year a user makes monetary contributions in line with the modalities, the user is considered to have fairly and equitably shared monetary benefits under the mechanism and receives a certificate (Annex paragraph 15).
- Contributions beyond the indicative levels are encouraged (Annex paragraph 16).
- Parties and non-Parties are invited to take administrative, policy or legislative measures to encourage users in their jurisdiction to contribute (Annex paragraph 13).
Non-monetary benefit-sharing
All users of DSI should share non-monetary benefits as appropriate, and this is complementary to monetary benefit-sharing (Annex paragraph 6). Such benefits should support self-identified capacity and technical development needs, including capacity-building for generating, accessing, using and storing DSI (paragraph 7), and are facilitated through an existing clearing-house under the Convention (paragraph 8).
Common misunderstandings
- Assuming academic researchers pay data fees: Annex paragraph 9 states that public research and academic institutions and entities operating public databases are not expected to make monetary contributions.
- Confusing DSI with physical material: The decision concerns digital sequence information. Physical genetic resources remain subject to access and benefit-sharing arrangements such as material transfer agreements and applicable national measures. The decision also asks that national measures be aligned with the mechanism to avoid duplicated expectations (Annex paragraph 26).
- Treating the thresholds as final: Annex paragraph 4 provides for the COP to set thresholds and rates at its seventeenth meeting.
- Assuming every company in a listed sector contributes: The size test applies, and paragraph 5 excludes sector entities that do not use DSI.
Key provisions at a glance
| Topic | What Decision 16/2 says | Annex reference |
|---|---|---|
| Administration | United Nations Multi-Partner Trust Fund Office, accountable to the COP | Paragraph 23 |
| Size test | Exceed two of three: assets 20 million, sales 50 million, profit 5 million US dollars (three-year average) | Paragraph 3 |
| Indicative rate | 1 per cent of profits or 0.1 per cent of revenue | Paragraph 3 |
| Not expected to pay | Public databases and public research and academic institutions | Paragraph 9 |
| Indigenous peoples and local communities | At least half of funding, where appropriate | Paragraph 21 |
| Review of thresholds | COP to establish thresholds and rates at its seventeenth meeting | Paragraph 4 |
FAQ
What is digital sequence information (DSI)?
DSI is the term used under the Convention on Biological Diversity for digital information derived from genetic resources; Decision 16/2 applies the mechanism to such information where it is publicly available and meets the conditions in Annex paragraph 1.
Do university researchers have to pay fees when downloading sequences from public databases?
Annex paragraph 9 states that public research and academic institutions and entities operating public databases are not expected to make monetary contributions to the global fund.
Which companies are expected to contribute to the Cali Fund?
Users of DSI in commercial sectors that benefit from it, when they exceed at least two of three thresholds (total assets of 20 million, sales of 50 million and profit of 5 million United States dollars, averaged over three years). The thresholds and rates are due to be set at COP 17 (Annex paragraphs 3 and 4).
How is the money used?
Funding supports the Convention’s objectives in developing country Parties and capacity-building for DSI, and where appropriate at least half is to support the self-identified needs of indigenous peoples and local communities (Annex paragraphs 18 and 21).
Sources
- Conference of the Parties to the Convention on Biological Diversity. (2024). Decision 16/2: Digital sequence information on genetic resources. CBD/COP/DEC/16/2. https://www.cbd.int/doc/decisions/cop-16/cop-16-dec-02-en.pdf (checked 2026-11-07).
