The 16th Conference of the Parties to the Convention on Biological Diversity (COP16), held in Colombia from October 21 to November 1, 2024, marked a significant moment in advancing marine and coastal conservation.
This was the first biodiversity COP since the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF), also referred to as the ‘Paris Agreement for Nature,’ at COP15 in 2022. The GBF’s central mission is to halt and reverse biodiversity loss in order to shift nature onto a path to recovery. To achieve this, GBF has set four long-term goals for 2050 and 23 targets for 2030.
This article will explore key marine-related decisions from COP16 and implications investors should be aware of.
Recognition of Ecologically and Biologically Significant Marine Areas (EBSAs)
Ecologically and Biologically Significant Areas (EBSAs) are areas of the ocean which are of particular importance due to their ecological and biological features. These zones play a vital role for both nature and humans as they provide habitats, food sources, and breeding grounds for certain species.
To date, 338 EBSAs have been identified across the world. However, the Protected Planet Report 2024 has found that only 8.4% of the ocean and coastal areas are estimated to be protected and conserved.
At COP16, government negotiators adopted an historic decision on EBSAs. The parties agreed on a new framework based on scientific criteria for mapping and updating EBSAs vital for the health of the ocean. This marks a critical step towards safeguarding marine biodiversity, as the data collected will inform science-based measures to conserve, restore, and manage marine ecosystems.
Most important, the adoption of the Framework represents a key milestone on the path to achieve multiple targets and goals set under the GBF. Specifically, it will support Target 3 of the GBF, referred to as 30×30, calling for the conservation of 30% of Earth’s land, waters, and seas by 2030. Mapping and managing existing and new protected zones represent one of the most effective approaches a) to conserve biodiversity, b) to ensure the collection of robust data, c) to ensure strategic and efficient management of ocean areas, and d) to promote international cooperation on ensuring collective protection of marine areas. All these factors contribute to reaching Target 3 under the GBF.
Conservation and Sustainable Use of Marine and Coastal Biodiversity and of Island Biodiversity
During COP16, Parties to the CBD have recognized conservation of marine, coastal, and island biodiversity as one of the key cross-cutting elements to reach some of the goals under the GBF. Important decisions have been agreed on, such as the adoption of the Agreement under the United Nations Convention on the Law of the Sea on the Conservation and Sustainable Use of Marine Biological Diversity of Areas beyond National Jurisdiction (BBNJ), and the encouragement of the development of an international legally binding instrument on plastic pollution.
Many other crucial points have been agreed upon, identifying gaps and areas in need of additional focus regarding marine, coastal, and island biodiversity. The following section will explore the key areas relevant for investors.
Enhance understanding of the extent of degraded marine and coastal areas and the complexities of restoration. Restoring degrading marine ecosystems makes it possible to protect and enhance ecosystem services while achieving national and global conservation and climate-nature targets.
Enhance the use of nature-based solutions (NbS) and/or ecosystem-based approaches across a variety of coastal and marine areas. Nbs are a strategic alternative to address climate change and biodiversity loss while also tackling a variety of social challenges, such as water and food security. Coastal and marine NbS are actions to protect, manage, and restore coastal and marine environments in ways that address societal challenges effectively and adaptively. Moreover, local coastal and marine NbS offer significant and cost-effective mitigation and adaptation measures, while providing multiple co-benefits to communities and ecosystems.
Assess and prevent, mitigate, or minimize the individual and cumulative impacts of all types of pollution, including transboundary pollution, when they co-occur in marine and coastal areas. Transboundary pollution refers to contamination that is not within national boundaries and therefore complicates processes for mitigation and control.
Pursue further research on the impacts of ocean acidification and warming, particularly in combination with other stressors. The ocean is the planet’s largest carbon sink, absorbing 30% of the carbon dioxide (CO2) in the atmosphere. As the ocean absorbs more CO2 from the atmosphere, this leads to ocean acidification. This phenomenon alters and damages marine ecosystems; for instance, it prevents shell-forming species such as corals, oysters, and plankton from surviving.
Challenges to Navigate
While expanded protection for marine areas represents a step in the right direction, COP16 also saw a lack of consensus on nature financing. Although eight countries pledged around $400 million total to the Global Biodiversity Framework Fund, this does not align with the GBF Target 19 of mobilizing $200 billion per year for Biodiversity from all sources by 2030.
As climate-nature finance remains inadequate to achieve the GBF targets, public and private finance will have to step up.
Why the Ocean Matters for Institutional Investors
The ocean is fundamental to global biodiversity, climate regulation, and economic resilience. COP16 has reaffirmed its indispensable role in achieving global nature and climate goals, with a strong emphasis on NbS and restoration of degraded marine ecosystems.
Despite the critical role of ecosystem services, their value remains unaccounted for in most corporate balance sheets, while such services are taken for granted in business projections. This oversight can obscure how reliant certain economic activities are on ecosystem services. For example, the beverage sector heavily depends on water supplies and forested areas that provide upstream catchment. Investing in NbS may therefore be considered a strategic imperative that secures long-term value across the entire supply chain.
For institutional investors, COP16 outcomes present a timely opportunity to align portfolios with ocean-focused initiatives. The areas that COP16 identified as needing greater focus may be areas where investors can take a proactive stance. Investors can position themselves ahead of regulatory shifts, mitigate risks tied to ecosystem degradation, and unlock growth potential tied to blue economy opportunities.
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- Use ISS ESG Climate Solutions to help you gain a better understanding of your exposure to climate-related risks and use the insights to safeguard your investment portfolios.
By: Clarissa Persico, Freshwater and Oceans Lead, Natural Capital Research Institute, ISS ESG
