WEBVTT - Who Gives a COP? UN Biodiversity Summit Expectations 0:00:00.520 --> 0:00:03.280 This is Dana Perkins and you're listening to Switched on 0:00:03.720 --> 0:00:07.200 the BNAF podcast, and today we're going to talk about COP, 0:00:07.480 --> 0:00:12.680 not Climate COP and Baku Azerbaijan, but BIOCOP in Cali, Columbia. 0:00:12.800 --> 0:00:16.239 We've got Hugh Bromley, beanuf's head of Food, Agriculture and 0:00:16.360 --> 0:00:19.479 Nature and his team member Alistair Perty on the show 0:00:19.480 --> 0:00:23.000 today to tell us about the United Nations Conference on 0:00:23.120 --> 0:00:26.240 Biological Diversity. They tell us what this summit is all 0:00:26.280 --> 0:00:29.240 about and what we can expect from the good to 0:00:29.320 --> 0:00:31.920 the bad, by sharing some of their predictions for this 0:00:32.040 --> 0:00:36.400 event in a research note titled Expectations from Biodiversity COP 0:00:36.479 --> 0:00:40.120 sixteen Cali Fauna Dreaming. We love a good pun in there. 0:00:40.200 --> 0:00:43.000 So if you're more familiar with Climate COP, you're not alone. 0:00:43.080 --> 0:00:45.800 We'll go through some of the need to know definitions 0:00:45.840 --> 0:00:49.280 to get you familiar with the international agreements like the 0:00:49.320 --> 0:00:53.880 Global Biodiversity Framework and required homework in advance of COP 0:00:53.920 --> 0:00:58.000 sixteen by the parties attending, such as the National Biodiversity 0:00:58.000 --> 0:01:01.640 Strategies and Action Plans. Clients will be able to find 0:01:01.800 --> 0:01:04.959 this report at BNF go on the Bloomberg terminal, or 0:01:05.000 --> 0:01:09.160 at BNF dot com for public resources associated with international 0:01:09.200 --> 0:01:12.360 events such as COP sixteen, COP twenty nine, or New 0:01:12.400 --> 0:01:16.280 York Climate Week. Head to about dot BNF, dot com, 0:01:16.319 --> 0:01:21.440 forward slash, bn EF dash climate dash action. This website 0:01:21.520 --> 0:01:26.160 contains public research on climate and nature as we publish reports. 0:01:26.400 --> 0:01:29.440 Now let's get to our conversation with Hugh and Alistair 0:01:29.560 --> 0:01:41.720 regarding BIOCOP. Hugh, welcome to the show. 0:01:41.920 --> 0:01:43.000 Great to be back, Dana. 0:01:43.080 --> 0:01:45.640 And Alistair, nice having you back to Thank you, Dana, 0:01:45.760 --> 0:01:48.120 nice to be here. We're going to talk about biodiversity 0:01:48.160 --> 0:01:49.800 COP today and we're going to use a lot of 0:01:49.840 --> 0:01:53.520 definitions because really that was the genesis of why we 0:01:53.640 --> 0:01:55.840 decided to do this show, is that there's so much 0:01:55.880 --> 0:02:00.960 conversation about climate COP and increasingly conversation about bio diversity COP. 0:02:01.000 --> 0:02:03.880 And we wager that they're listeners out there who listen 0:02:03.920 --> 0:02:06.640 to this show who also want to know what the 0:02:06.680 --> 0:02:09.520 difference is and really what the aims and purpose of 0:02:09.720 --> 0:02:13.519 biodiversity COP is, especially with it coming up very shortly. 0:02:14.000 --> 0:02:17.600 So before we even jump in on the Conference of 0:02:17.600 --> 0:02:20.359 the Parties, which is what COP stands for, let's do 0:02:20.440 --> 0:02:24.200 some definitions on nature and biodiversity because I increasingly am 0:02:24.240 --> 0:02:29.840 seeing nature used as terminology within financial reporting. And then additionally, 0:02:29.880 --> 0:02:33.679 biodiversity is another term that keeps coming up. So nature biodiversity, 0:02:33.720 --> 0:02:35.840 which one do you want to start with? But give 0:02:35.880 --> 0:02:36.560 me a definition. 0:02:36.919 --> 0:02:38.840 Yeah, it's a really good point, Dan, and I think 0:02:38.840 --> 0:02:41.239 there's been quite a lot of confusion about this terminology, 0:02:41.320 --> 0:02:44.560 especially over the last year and within the financial circles. 0:02:44.639 --> 0:02:47.720 Generally we say nature when we're talking about all resources 0:02:47.760 --> 0:02:50.400 not made by humans that can be biotic things i. 0:02:50.680 --> 0:02:55.120 Living organisms, or abiotic resources non living things such as water, air, 0:02:55.240 --> 0:02:58.680 and geology. Biodiversity is different. It's the variation in the 0:02:58.760 --> 0:03:02.440 type of species and think more biodiversity means more different 0:03:02.560 --> 0:03:06.079 kinds of living things and this can apply across species, habitats, 0:03:06.120 --> 0:03:07.160 and also genetics. 0:03:07.360 --> 0:03:12.120 So at biodiversity cop they're focused specifically on biodiversity or 0:03:12.160 --> 0:03:15.280 does it bleed into this broader definition that is nature. 0:03:15.560 --> 0:03:20.760 Essentially, biodiversity is one characteristic of nature. If we improve nature, 0:03:20.800 --> 0:03:22.760 if we make it more resilient, one of the things 0:03:22.760 --> 0:03:25.640 that we'll see is more kinds of species and more biodiversity. 0:03:25.720 --> 0:03:28.079 So yeah, the focus will be on biodiversity, but that's 0:03:28.120 --> 0:03:30.520 part of a bigger discussion on nature and the reason 0:03:30.520 --> 0:03:34.079 why This is so important for us as humans and 0:03:34.160 --> 0:03:36.920 for the business world is because this stack of natural 0:03:36.960 --> 0:03:40.680 resources provides ecosystem services. That's a flow of value that 0:03:40.720 --> 0:03:45.559 we can generate. Many things from this covers regulating services, provisions, 0:03:45.640 --> 0:03:49.480 provisioning services, supporting services, and cultural services. Some of the 0:03:49.520 --> 0:03:51.640 more well known ones might just be the food that 0:03:51.640 --> 0:03:55.080 we get from nature, or it could be pollination services 0:03:55.240 --> 0:03:59.840 or water and air purification. We also derive intangible benefits, 0:04:00.000 --> 0:04:03.080 which is cultural appreciation on various other things like. 0:04:03.000 --> 0:04:06.960 That pollination services. I mean you're literally talking about bees here. Yeah, 0:04:07.040 --> 0:04:10.480 we are exactly Okay, we're giving things very technical names. 0:04:10.680 --> 0:04:15.200 Here we go. So at Biodiversity Cup where when what's 0:04:15.240 --> 0:04:15.720 coming up? 0:04:15.960 --> 0:04:16.200 Sure? 0:04:16.240 --> 0:04:19.800 So bid Diversity COP kicks off later this month in Cali, Columbia. 0:04:19.880 --> 0:04:23.120 So really this comes nearly two years after a landmark 0:04:23.160 --> 0:04:26.000 agreement was reached at COP fifteen, which was in Montreal 0:04:26.080 --> 0:04:28.800 the end of twenty twenty two that led to the 0:04:28.839 --> 0:04:31.920 Global bio Diversity Framework, a set of principles. So Cali 0:04:31.920 --> 0:04:34.320 Columbia is really meant to be just a status check 0:04:34.360 --> 0:04:37.880 on how we're progressing on those that agreement and the 0:04:37.880 --> 0:04:41.600 set of targets reached in Montreal, rather than leading to 0:04:42.000 --> 0:04:44.240 any great breakthrough in new agreements. 0:04:44.440 --> 0:04:47.640 And these CUP meetings are facilitated by the United Nations. 0:04:47.640 --> 0:04:49.000 But who really attends. 0:04:49.440 --> 0:04:53.040 We know this time around there's around fourteen thousand delegates registered, 0:04:53.120 --> 0:04:55.680 so I imagine that's going to be a record, including a 0:04:55.760 --> 0:04:58.560 number of heads of state. I think this bio Diversity 0:04:58.600 --> 0:05:00.560 cop is really going to be the first we see 0:05:00.560 --> 0:05:05.000 a really significant financial and corporate attendance and delegation. That 0:05:05.160 --> 0:05:07.479 was somewhat true in Montreal, probably for the first instance, 0:05:07.480 --> 0:05:09.840 but this is one where actually that we're seeing amongst 0:05:09.839 --> 0:05:14.279 our clientele much more interest in this space, especially given 0:05:14.480 --> 0:05:16.960 the challenges of attending Climate copp and Backwood. 0:05:17.000 --> 0:05:17.320 Later in the. 0:05:17.360 --> 0:05:21.480 Year's one hundred and ninety six parties, which means regions 0:05:21.720 --> 0:05:25.640 countries are signatories of the Convention on Biological Diversity. They 0:05:25.680 --> 0:05:29.520 all send delegates to negotiate on many of the items 0:05:29.560 --> 0:05:32.440 up a discussion. Among these one hundred and ninety six parties, 0:05:32.600 --> 0:05:37.080 there's one hundred ministers for the environment from their respective parties, 0:05:37.279 --> 0:05:39.679 as well as twelve heads of states, largely from South 0:05:39.680 --> 0:05:41.440 American or Latin American countries. 0:05:41.640 --> 0:05:44.119 So let's talk a little bit just while we're laying 0:05:44.120 --> 0:05:46.039 it all out at the beginning what the structure of 0:05:46.080 --> 0:05:48.719 these meetings really is. So you have those that are 0:05:48.760 --> 0:05:51.760 for the delegates and the official negotiations. So when we 0:05:51.800 --> 0:05:55.000 talk about the different things that are actually signed and 0:05:55.160 --> 0:05:57.479 the resolutions that come out of these meetings, there's one 0:05:57.480 --> 0:06:00.680 set of meetings, but then there's the blue zone and 0:06:00.720 --> 0:06:02.760 the green zone, and then people who are going to 0:06:02.839 --> 0:06:04.400 neither of the two. But we can leave that to 0:06:04.440 --> 0:06:06.400 the side. The blue zone in the green zone, can 0:06:06.440 --> 0:06:08.040 you explain what the difference between those are. 0:06:08.240 --> 0:06:10.280 That's such a good point because when I first standed 0:06:10.279 --> 0:06:12.400 this space, I was already confused by the difference. You 0:06:12.440 --> 0:06:14.039 hear it thrown around all the time, and you're like, 0:06:14.080 --> 0:06:16.080 what's the green, what's the blue. Blue is where all 0:06:16.120 --> 0:06:19.279 the official negotiation happens. That's where the plannary room is, 0:06:19.320 --> 0:06:22.200 where all the party's main delegates Are's where business happens. 0:06:22.279 --> 0:06:25.360 There is some angio and civil society engagement there, but 0:06:25.520 --> 0:06:29.040 most of the non government, non official negotiations happens about 0:06:29.080 --> 0:06:31.359 forty five minutes away in the center of town in 0:06:31.400 --> 0:06:34.320 the green zone. Here a lot of private and public 0:06:34.360 --> 0:06:39.400 sector institutions have set up informal pavilions where there'll be debates, discussions, panels. 0:06:39.520 --> 0:06:40.120 I think for. 0:06:40.120 --> 0:06:43.839 Anyone who's attending CALLY this year, they'll be becoming aware 0:06:43.839 --> 0:06:45.960 of just how challenging the logistics is. Because normally the 0:06:45.960 --> 0:06:48.599 green and the blue zones are either adjacent or concentric 0:06:48.600 --> 0:06:51.800 to one another. Cally's looking different, CALLI. The green zone 0:06:51.839 --> 0:06:54.159 is downtown, the blue zone is a conference center. You know, 0:06:54.240 --> 0:06:56.000 normally twenty minutes out of town. We're told it will 0:06:56.040 --> 0:06:58.599 take forty five minutes to an hour. Given the number 0:06:58.640 --> 0:07:00.839 of people visiting town. It's going to be quite a 0:07:00.880 --> 0:07:03.320 difficult cop to be present in and you know, to 0:07:03.440 --> 0:07:07.040 experience both zones, and I imagine you know certainly going 0:07:07.080 --> 0:07:09.480 into it, that's the logistics are looking challenging. 0:07:09.800 --> 0:07:14.160 So you had mentioned this Kunming Montreal Global Biodiversity Framework 0:07:14.200 --> 0:07:16.880 referred to as GBF, and this was one of the 0:07:16.920 --> 0:07:19.120 really important things that came out of COP fifteen two 0:07:19.200 --> 0:07:21.760 years ago. Can you explain what's in that and why 0:07:21.840 --> 0:07:24.400 that was such a large agreement to come to. 0:07:24.760 --> 0:07:28.600 Absolutely, the Global Biodiversity Framework is Nature's equivalent of the 0:07:28.640 --> 0:07:31.360 Paris Agreement. Here all those one hundred and ninety six 0:07:31.400 --> 0:07:34.480 parties came together and agreed essentially a ten year plan 0:07:34.600 --> 0:07:37.520 for biodiversity. It's the goals that we need to achieve 0:07:37.600 --> 0:07:40.840 by twenty thirty. That's twenty three targets covering a range 0:07:40.880 --> 0:07:43.240 of really important issues that we'll get into today, as 0:07:43.240 --> 0:07:46.440 well as four more high level fluffy goals living in 0:07:46.440 --> 0:07:48.960 harmony with nature by twenty fifty. But these things won't 0:07:49.000 --> 0:07:50.200 be on the Khali agenda. 0:07:50.320 --> 0:07:52.560 So the most notable of those targets and the headline 0:07:52.560 --> 0:07:54.040 coming out of Montreal was. 0:07:53.960 --> 0:07:55.680 This thirty by thirty target. 0:07:55.760 --> 0:07:58.040 So that's the target to restore thirty percent of all 0:07:58.120 --> 0:08:01.800 degraded ecosystems and conserve thirty percent of all inlead waters 0:08:01.800 --> 0:08:04.320 and seas. That's been collectively known as a thirty by 0:08:04.400 --> 0:08:04.840 thirty target. 0:08:04.880 --> 0:08:07.120 But actually, to Alistairs point, there's twenty three. 0:08:06.920 --> 0:08:10.000 Targets containing that part of us your framework, and Kelly 0:08:10.080 --> 0:08:12.760 is really a check in on all those targets. 0:08:13.000 --> 0:08:17.360 So decisions are made at Biodiversity COP and goals are set, 0:08:17.400 --> 0:08:19.840 and goals are definitely a good way to reach for 0:08:19.920 --> 0:08:22.440 something in benchmark progress, But is any of it legally 0:08:22.480 --> 0:08:25.880 binding and how may that differ from how things take 0:08:25.920 --> 0:08:28.360 place at the climate focused COP meetings. 0:08:28.600 --> 0:08:30.600 It's a really good point and it kind of explains 0:08:30.680 --> 0:08:33.640 why so little happened over the previous decade. The last 0:08:33.679 --> 0:08:36.680 version of the GBF was a different tenure plan which 0:08:36.679 --> 0:08:39.120 had twenty two targets, and they all failed. One of 0:08:39.160 --> 0:08:42.360 the reasons is that the biodiversity cop outcomes are not 0:08:42.480 --> 0:08:46.520 legally binding. Once countries or parties come back to their 0:08:46.559 --> 0:08:50.600 governments and ratify policies, then it becomes a legally binding issue, 0:08:50.800 --> 0:08:52.760 but there's no obligation for them to do that under 0:08:52.800 --> 0:08:54.040 any kind of legal framework. 0:08:54.360 --> 0:08:56.720 In the run up to the Biodiversity cop taking place 0:08:56.720 --> 0:08:59.400 in Kelly, there was some paperwork to be done. So 0:08:59.480 --> 0:09:01.960 the part that are actually coming to the table we're 0:09:02.040 --> 0:09:04.840 meant to done their homework and submitted information. Can you 0:09:04.880 --> 0:09:07.920 talk about what that's called? So what those plans actually 0:09:07.960 --> 0:09:10.960 are referred to as, what's in them, and how we're 0:09:11.000 --> 0:09:13.720 doing on submissions and meeting deadlines. 0:09:14.080 --> 0:09:16.600 That's a great question, is the essence of what this 0:09:16.720 --> 0:09:18.880 meeting is about. All of these one hundred and ninety 0:09:18.920 --> 0:09:22.840 six parties were required to submit updated and revised national 0:09:22.880 --> 0:09:26.400 biodiversity strategies and action plans, which is quite the mouthful. 0:09:26.480 --> 0:09:29.080 So we'll just call them national plans. The deadline for 0:09:29.120 --> 0:09:32.760 this submission is the closing ceremony of the Kali Proceedings. 0:09:32.800 --> 0:09:35.560 All of these plans should cover the twenty three targets 0:09:35.600 --> 0:09:39.160 contained within the Global Biodiversity Framework, and if done correctly 0:09:39.240 --> 0:09:41.360 in theory, it should be a big step forward in 0:09:41.480 --> 0:09:45.560 protecting and restoring nature globally. However, we've noticed that only 0:09:45.600 --> 0:09:47.880 twenty five countries have so far been able to submit 0:09:47.920 --> 0:09:51.080 those plans, but there is some silver linings within this. 0:09:51.320 --> 0:09:55.720 Among those twenty five countries, does the EU, China, Japan, 0:09:56.080 --> 0:09:59.680 and New Zealand and Australia submit their documents at the 0:10:00.080 --> 0:10:03.320 Nature Positive Summit held in Sydney. The parties who have 0:10:03.320 --> 0:10:06.400 submitted documents to count for about half of global GDP 0:10:06.520 --> 0:10:09.079 and roughly a quarter of global landmarks, So there is 0:10:09.160 --> 0:10:12.559 progress from many of the higher income Global North countries, 0:10:12.640 --> 0:10:14.480 but still many laggots exist. 0:10:14.800 --> 0:10:17.280 And while it's a significant share of GDP, it's worth 0:10:17.280 --> 0:10:20.080 pointing out that these u and negotiations are consensus space, 0:10:20.320 --> 0:10:22.720 so it actually actually you do need all one hundred 0:10:22.720 --> 0:10:26.240 and ninety six parties to agree on conventions or in agreements. Here, 0:10:26.240 --> 0:10:28.160 you don't need the multi A Smitt of plans necessarily, 0:10:28.200 --> 0:10:30.440 but it's an indication of the level of engagement amongst 0:10:30.480 --> 0:10:31.480 the various countries. 0:10:31.880 --> 0:10:34.960 Many countries have been slow to submit their plans, and 0:10:35.000 --> 0:10:37.680 we've learned recently that the UK will not be able 0:10:37.720 --> 0:10:40.480 to submit it in time for the deadline. In Kuli, 0:10:40.640 --> 0:10:42.960 one of the reasons is they've undertaken a really deep 0:10:43.040 --> 0:10:46.560 there consultative approach. They've worked to really build out a 0:10:46.600 --> 0:10:49.400 long term biodiversity strategy, and of course that takes time 0:10:49.400 --> 0:10:53.040 because it is like a transformational economy wide issue. 0:10:53.160 --> 0:10:56.120 Now in climate discussions, there's a lot of conversation around 0:10:56.360 --> 0:10:59.880 industrialized nations and their emissions, and you know, really focus 0:11:00.120 --> 0:11:03.240 on a few countries that actually have the vast majority 0:11:03.280 --> 0:11:05.480 of global emissions and then other countries that are in 0:11:05.520 --> 0:11:09.640 the process of industrializing. So emerging markets and developing economies 0:11:09.720 --> 0:11:12.440 is largely the term being used at present to define 0:11:12.480 --> 0:11:15.680 this group of countries and how potentially their emission targets 0:11:15.679 --> 0:11:19.240 should be. Quite different from a biodiversity standpoint, you don't 0:11:19.240 --> 0:11:22.520 have that same developed and developing diconomy, but you do 0:11:22.640 --> 0:11:26.480 have vast amounts of biodiversity in certain parts of the world. 0:11:26.520 --> 0:11:30.600 So maybe Brazil or Indonesia. Is there a real focus 0:11:30.600 --> 0:11:33.640 on specific countries and which countries are really at the 0:11:33.679 --> 0:11:37.680 center of these conversations regarding what it is we're trying 0:11:37.720 --> 0:11:38.640 to preserve. 0:11:39.240 --> 0:11:43.359 So similar to climate, much of global biodiversity is located 0:11:43.440 --> 0:11:47.319 in EMDs, and generally we see them pressing for compensation 0:11:47.480 --> 0:11:50.000 from the rich countries who have profited so much from it. 0:11:50.120 --> 0:11:54.640 But this club of developed economies is reluctant to what's 0:11:54.679 --> 0:11:58.320 required to these countries in order to rectify what's being taken. 0:11:58.640 --> 0:12:02.920 There's a two hundred billion dollar target to mobilize finance 0:12:03.000 --> 0:12:06.719 towards biodiversity in general, but there's also two specific targets 0:12:06.760 --> 0:12:11.120 for international development finance. The first of those is mobilizing 0:12:11.200 --> 0:12:16.160 twenty billion dollars to emdas by twenty twenty five for biodiversity, 0:12:16.280 --> 0:12:18.600 and that follows through to twenty thirty with a thirty 0:12:18.640 --> 0:12:20.560 billion target for those countries. 0:12:20.800 --> 0:12:23.320 One thing we've done for the past two years produce 0:12:23.760 --> 0:12:27.040 some funding priorities for where these funds, once raised, should 0:12:27.040 --> 0:12:27.520 be deployed. 0:12:27.760 --> 0:12:28.440 We've we've done it. 0:12:28.559 --> 0:12:30.880 This will be our third iteration that really releasing at 0:12:30.920 --> 0:12:33.559 Cali and really what we look at there is three indicators. 0:12:33.600 --> 0:12:36.319 The first being the presence of biodiversity. You know, where 0:12:36.400 --> 0:12:39.120 is biodiversity present that should be saved. The second is 0:12:39.440 --> 0:12:42.079 where is it valuable? So what are the ecosystem services, 0:12:42.080 --> 0:12:44.599 whether monetized or not by the broader economy. Where is 0:12:44.679 --> 0:12:47.800 biodiversity in nature delivering value? And the third being where 0:12:47.840 --> 0:12:49.760 is it under threat? So that is where is their 0:12:49.760 --> 0:12:53.719 political instability or where are extractive industries large such that 0:12:53.760 --> 0:12:56.120 they pose a threat to nature? And we look across 0:12:56.160 --> 0:12:57.960 all of those metrics and wait, then we come to 0:12:57.960 --> 0:13:00.439 the conclusion that a lot of bio diversity five needs 0:13:00.440 --> 0:13:04.319 to be deployed, unsurprisingly in markets like Brazil, China, Indonesia, 0:13:04.559 --> 0:13:07.720 DRC and Colombia and many others as well. And really 0:13:07.760 --> 0:13:11.199 that comes down to threat is high amongst a lot 0:13:11.200 --> 0:13:14.400 of these countries, but there is enough political stability such 0:13:14.440 --> 0:13:14.719 that the. 0:13:14.640 --> 0:13:16.280 Funds aren't there should not be wasted. 0:13:16.400 --> 0:13:19.840 The value varies greatly, and these are biodiversity hotspots. 0:13:20.360 --> 0:13:24.880 Some of the more developed countries have effectively destroyed almost 0:13:24.920 --> 0:13:28.000 all of their biodiversity, so their presence score on that 0:13:28.240 --> 0:13:31.800 indicator is zero. So we look at the EU UK, 0:13:32.160 --> 0:13:33.720 almost no biodiversity remains. 0:13:33.760 --> 0:13:36.240 Well, when we think about the Amazon people talk about 0:13:36.280 --> 0:13:38.720 it sometimes as the lungs of the earth. So there 0:13:38.720 --> 0:13:41.040 are shared resources that we should all care about, even 0:13:41.080 --> 0:13:44.679 though they may not from a government standpoint, be specifically 0:13:44.760 --> 0:13:47.840 one government's responsibility or another, which I suppose is actually 0:13:47.880 --> 0:13:49.920 the fundamental aim of having these meetings. 0:13:50.080 --> 0:13:51.120 That's absolutely right. 0:13:51.200 --> 0:13:54.520 So that's one conclusion we arrived through this value metric 0:13:54.800 --> 0:13:59.080 is that the value derived from ecosystem services transcend national boundaries. 0:13:59.080 --> 0:14:01.239 And actually what you send to find is that ecosystem 0:14:01.240 --> 0:14:04.600 service values tend to be higher across large land masses 0:14:04.640 --> 0:14:07.479 where biodiversity remains intact, and across large economies. 0:14:07.600 --> 0:14:09.360 But actually value of ecosystem service is. 0:14:09.360 --> 0:14:12.240 Getting many cases exceed the local economy the GDP of 0:14:12.240 --> 0:14:14.800 that economy, and that means that they are exporting value 0:14:14.840 --> 0:14:16.480 to the rest of the world that they're probably not 0:14:16.559 --> 0:14:17.000 paying for. 0:14:17.040 --> 0:14:19.040 But that's why these negotiations are important. 0:14:19.280 --> 0:14:21.320 So let's talk about that funding gap in some of 0:14:21.320 --> 0:14:25.800 the financial pledges the GBF or the Global Biodiversity Framework. 0:14:25.880 --> 0:14:28.200 Can we talk about how that is meant to be 0:14:28.280 --> 0:14:31.400 funded and how much money has actually made its way 0:14:31.440 --> 0:14:32.200 into the part. 0:14:32.400 --> 0:14:36.360 According to BNAF analysis, which is based on some very 0:14:36.400 --> 0:14:39.240 important reporting work done in twenty twenty and twenty twenty one, 0:14:39.320 --> 0:14:42.760 and since updated. There's approximately an eight hundred billion dollar 0:14:42.880 --> 0:14:45.760 annual gap. To meet the goals of the Biodiversity Framework, 0:14:45.840 --> 0:14:48.800 a trillion per year is required, but currently only about 0:14:48.800 --> 0:14:52.560 two hundred billion per years flowing into biodiversity. The first 0:14:52.600 --> 0:14:55.240 step to address this is a target for twenty thirty 0:14:55.280 --> 0:14:58.320 requiring two hundred billion of annual flows, But there's issues 0:14:58.360 --> 0:15:01.440 here which countries should commit that in what form, What 0:15:01.600 --> 0:15:05.360 constitutes biodiversity finance. Should it be biodiversity related, should it 0:15:05.360 --> 0:15:08.640 be biodiversity specific. Every party to the CBD has their 0:15:08.680 --> 0:15:11.000 own different view on this. So one weird thing we 0:15:11.080 --> 0:15:13.240 found is like, there is this two hundred billion dollars 0:15:13.240 --> 0:15:16.680 per year requirement contained within the GBF, but current annual 0:15:16.680 --> 0:15:19.840 biodiversity flows are about two hundred billion. So you could argue, 0:15:19.880 --> 0:15:22.640 if you were being cheeky, that that target has already 0:15:22.640 --> 0:15:25.080 been met, but it's so fluffy that this disagreement. 0:15:25.320 --> 0:15:28.240 So with all of the submitting of paperwork in the 0:15:28.320 --> 0:15:32.120 run up to cop and discussions around which categories certain 0:15:32.160 --> 0:15:34.720 parts of biodiversity fit within, do you think that one 0:15:34.760 --> 0:15:37.440 of the benefits of these meetings has actually been better 0:15:37.520 --> 0:15:41.000 reporting and better measurement of what's actually happening around the world. 0:15:41.320 --> 0:15:43.600 There's often this idea that there's a massive data gap 0:15:43.760 --> 0:15:47.200 of nature and biodiversity that's preventing action and preventing reporting. 0:15:47.400 --> 0:15:49.760 I think, you know, in our view, that's probably overstated. 0:15:49.880 --> 0:15:52.560 There is lots of data in this space. What's sometimes 0:15:52.560 --> 0:15:55.960 missing is the attribution or association of those nature metrics 0:15:56.000 --> 0:15:58.280 with the companies and even in some cases the jurisdictions 0:15:58.360 --> 0:16:01.360 or countries responsible for that natural resource that is impacting 0:16:01.440 --> 0:16:04.800 or dependent on those resources. I think scale and completeness 0:16:04.800 --> 0:16:08.080 can be lacking, but regulative at developments, the EUGR being 0:16:08.120 --> 0:16:13.520 the EU Deforestation Regulation and CSRD is the Corporate Sustainability 0:16:13.640 --> 0:16:18.240 Reporting Directive supporting rapid development of private private sector data products, 0:16:18.320 --> 0:16:20.560 including what we're doing here at Bloomberg, and we're investing 0:16:20.600 --> 0:16:22.920 heavily in the space building out data sets and tools 0:16:22.960 --> 0:16:26.760 to associate those indicators such as bi diverse intactus, deforestation, 0:16:26.960 --> 0:16:30.760 water scarcity with company operations and their supply chain dependency. 0:16:30.880 --> 0:16:33.560 There's also certainly data lacking around maritime. I think we're 0:16:33.560 --> 0:16:36.480 a bit naive here. When I look at maritime data, 0:16:36.480 --> 0:16:38.920 I think of the George W. Bush saying, I believe 0:16:38.920 --> 0:16:41.280 the human being and fish can coexist peacefully. We're kind 0:16:41.320 --> 0:16:43.800 of at that state where we know something exists there 0:16:43.840 --> 0:16:44.920 but don't know how to approach it. 0:16:45.000 --> 0:16:46.440 There's a data problem, but. 0:16:46.440 --> 0:16:49.280 Reporting is moving really quickly because of regulation, and it's 0:16:49.320 --> 0:16:51.600 supported by much more robust data. 0:16:51.680 --> 0:16:53.800 So one of the things that we do headed into 0:16:54.160 --> 0:16:57.320 the COP meetings, whether their Biodiversity COP or Climate COP, 0:16:57.400 --> 0:16:59.480 is trying and give a bit of a scorecard to 0:16:59.520 --> 0:17:01.680 how we think things are going to go when it 0:17:01.720 --> 0:17:05.119 comes to negotiations across some of the main criteria of 0:17:05.160 --> 0:17:07.919 what's to be discussed at that upcoming meeting. So a 0:17:07.960 --> 0:17:10.879 bit of a prediction, if you will. Headed into this 0:17:10.960 --> 0:17:14.360 biodiversity cup, we gave it a four point nine out 0:17:14.400 --> 0:17:17.520 of ten overall, so we'll just call it five, which 0:17:17.680 --> 0:17:21.000 I would say is not necessarily the most optimistic, But 0:17:21.040 --> 0:17:23.879 there were a couple of categories that actually did rank 0:17:24.000 --> 0:17:26.560 significantly higher. So why don't we go to some of 0:17:26.600 --> 0:17:30.439 those with monitoring frameworks? And this actually piggybacks onto what 0:17:30.480 --> 0:17:33.080 we were just talking about, which was, you know, data 0:17:33.119 --> 0:17:35.240 and how we go about measuring things. That was one 0:17:35.240 --> 0:17:37.600 of those areas we actually saw a pretty high score, 0:17:37.640 --> 0:17:40.200 so it was eight out of ten. Why are monitoring 0:17:40.240 --> 0:17:42.240 frameworks getting an eight out of ten? And why is 0:17:42.280 --> 0:17:45.360 this potentially one of the bright spots in the upcoming 0:17:45.400 --> 0:17:46.720 Biodiversity Cup meetings. 0:17:47.080 --> 0:17:50.720 Behind the scenes of these cop meetings there is intercessional 0:17:50.720 --> 0:17:54.119 meetings where all these parties negotiate through the year on 0:17:54.200 --> 0:17:58.000 difficult technical issues. One of them less headline grabbing than 0:17:58.040 --> 0:18:00.640 money of the others are these monitoring and report frameworks. 0:18:00.680 --> 0:18:02.280 And over the last two years the parties to the 0:18:02.320 --> 0:18:05.480 CBD have ironed out almost all the details behind the scenes, 0:18:05.520 --> 0:18:08.439 so essentially they'll be rubber stamping the final document with 0:18:08.520 --> 0:18:11.159 only a few things to agree. Much of the architecture 0:18:11.200 --> 0:18:14.920 on reporting and monitoring was already built over the last 0:18:14.960 --> 0:18:17.679 ten years. While the twenty two itch targets were a 0:18:17.680 --> 0:18:20.720 complete failure with none of them being met, systems for 0:18:20.960 --> 0:18:24.760 parties to monitor biodiversity change and report their findings were 0:18:24.880 --> 0:18:28.040 set up well, so countries are well placed to agree 0:18:28.040 --> 0:18:30.959 on these things, so we're optimistic of a good outcome. Also, 0:18:31.160 --> 0:18:33.840 countries have nothing to lose. There's no point in disagreeing 0:18:33.880 --> 0:18:37.200 on a monitoring framework. Much more important is actually implementing 0:18:37.240 --> 0:18:39.000 policies that achieve those goals. 0:18:39.160 --> 0:18:42.159 So then let's talk about where the drama lies, the 0:18:42.359 --> 0:18:47.080 digital sequence information. Why is this likely to be really contentious? 0:18:47.280 --> 0:18:50.359 Well, first, the digital sequence information or DSi is a 0:18:50.440 --> 0:18:53.119 terrible name. It should just be called genetic resources. This 0:18:53.240 --> 0:18:56.000 is acknowledged by people working in that field. It's just 0:18:56.080 --> 0:18:58.960 hard now to rename it. When we say genetic resources, 0:18:59.000 --> 0:19:02.240 we say information from plant animal genetics that are then 0:19:02.320 --> 0:19:06.359 used in fields such as medicine or agricultural biotechnology. And 0:19:06.440 --> 0:19:10.320 it's a hugely profitable industry, with global revenues from DSi 0:19:10.720 --> 0:19:13.359 estimated at about one point five trillion per year, rising 0:19:13.359 --> 0:19:15.840 to almost two point three trillion by twenty thirty. 0:19:16.119 --> 0:19:18.840 The reason we're unlikely to see any breakthroughs here is 0:19:18.880 --> 0:19:21.080 that there's really no reason for these companies to be paying. 0:19:21.680 --> 0:19:24.320 The world has a very Victorian attitude to generate material. 0:19:24.760 --> 0:19:28.400 These companies and countries can benefit from genate resources collected 0:19:28.440 --> 0:19:29.960 from poor countries. 0:19:29.520 --> 0:19:30.120 At no cost. 0:19:30.520 --> 0:19:32.480 Really, what you have is companies that are basically privatized 0:19:32.520 --> 0:19:35.399 British museums of genate resources collected from other nations at 0:19:35.440 --> 0:19:36.280 various points in time. 0:19:36.680 --> 0:19:38.600 So let's talk about some of the different groups that 0:19:38.640 --> 0:19:41.520 are coming together. So beyond those who are involved with 0:19:41.560 --> 0:19:44.399 the actual negotiations at the real center of the meeting, 0:19:44.640 --> 0:19:47.720 there are some other stakeholders that really want to have 0:19:47.760 --> 0:19:49.760 a voice there. Some of those are businesses as we 0:19:49.760 --> 0:19:54.119 were just discussing and what they're actually getting from nature 0:19:54.240 --> 0:19:58.720 and biodiversity. And then there are Indigenous peoples who really 0:19:58.760 --> 0:20:01.640 do need to be represent and how is this being 0:20:01.680 --> 0:20:04.920