COP15: Business Engagement in Biodiversity Sparks Debate & Funding Concerns

Business Presence at UN Biodiversity Conference Sparks Debate

MONTREAL – The United Nations Biodiversity Conference (COP15) in Montreal has drawn a record number of corporate representatives, exceeding previous gatherings and prompting both optimism and concern among environmental advocates. More than 900 delegates representing 41 companies are attending the conference, which aims to establish a new international framework for preserving global ecosystems through 2030, according to the convention’s press office.

While some see increased business engagement as a sign of growing recognition of the require to address biodiversity loss, others worry that profit motives may undermine conservation efforts. Nele Marien, program coordinator at Friends of the Earth, expressed skepticism, stating, “The shareholders are the ones who govern the business and what they wish is profit. In many cases that’s a conflict of interest with biodiversity.”

The conference, originally scheduled for Kunming, China, in 2020 but postponed due to the COVID-19 pandemic, convened governments worldwide to agree on goals to halt and reverse nature loss. Adoption of a global biodiversity framework is seen as critical to meeting Sustainable Development Goals and limiting global warming to 1.5 degrees Celsius, according to the UN Environment Programme (UNEP).

Dan O’Brien, a partner at PricewaterhouseCoopers LLP’s Canadian unit, countered the criticism, arguing that business involvement demonstrates a “significant recognition” of the importance of biodiversity. He emphasized the need for conservation financing, noting that governments currently provide 85 percent of biodiversity funding, as reported by the Biodiversity Finance Initiative, a joint effort of the UN Development Programme and the European Commission.

The UN estimates a funding gap of between US$598 billion and US$824 billion per year by 2030. Stephanie Emond, vice-president of FinDev Canada, highlighted the necessity of private investment to bridge this gap, stating, “We won’t get there without the participation of private investors.”

According to a report co-authored by the World Economic Forum (WEF) and PwC, half of the world’s economy depends on nature. Businesses are increasingly recognizing nature loss as a risk to their long-term operations. This realization has led to increased interest in Targets 15 and 19 of the draft framework, which focus on corporate assessment and reporting of biodiversity impacts, and mobilizing financial resources for conservation, respectively.

Yet, tensions remain. Elizabeth Maruma Mrema, executive secretary of the UN Convention on Biological Diversity, suggested that economic growth and conservation could coexist, a statement that drew criticism from some environmentalists. An advocate from the Center for the Advancement of the Steady State Economy distributed a press release calling Mrema “behind the times” and advocating for her replacement if she does not acknowledge the incompatibility of continuous economic growth with biodiversity preservation.

The growing presence of business representatives at COP conferences has been noted by long-time attendees like Marien, who fears it signals an attempt by non-state actors to influence global environmental policy. She argues that the involvement of businesses with conflicting interests undermines the legitimacy of the negotiations and hinders progress toward meaningful outcomes. “If you come here and your objectives actually are against the objectives of the convention, then we have a problem,” she said.

Disagreements over financial commitments have already led to disruptions at the conference. Representatives from dozens of developing countries staged a walkout, protesting the reluctance of wealthy nations to specify the amount of funding they would contribute to achieve the agreed-upon goals. A delegate, speaking on condition of anonymity, told CTV News that rich countries are eager to discuss targets but hesitant to commit financial resources. This reflects a broader “trust deficit” pervading the negotiations.

Canada’s Environment Minister Steven Guilbeault affirmed his country’s commitment to mobilizing resources and urged other wealthy nations to follow suit. Talks have resumed, but resource mobilization remains a contentious issue.

Organizations like the Taskforce on Nature-related Financial Disclosures (TNFD) are attempting to provide investors with information about companies’ impacts on nature and their efforts to mitigate them. The goal is to direct capital toward “nature positive” models, according to O’Brien. He advocates for a standardized approach to measuring and reporting biodiversity impacts, similar to the carbon tax used to quantify the negative effects of climate change.

Tammy Newmark, chief executive of Eco Enterprises, a venture capital fund focused on biodiversity, noted the shift in perception regarding the role of the private sector. Initially, the concept of a venture fund for biodiversity was met with skepticism, but interest grew as the need for capital in communities in Latin America became apparent. “In the offerings on how to address biodiversity, you need a multitude of strategies in order to accomplish the huge task at hand,” she said.

Despite the growing engagement of the private sector, advocates like Marien remain cautious, advocating for limited and specific roles for businesses in the COP process. O’Brien, however, maintains that business involvement is essential, stating, “You can’t have a conference like this in the absence of business,” and that businesses will be “fundamental” in solving the issues at hand.

COP15 is scheduled to conclude on December 19. The outcome of the negotiations regarding financial commitments and the role of the private sector remains uncertain.