BBNJ Treaty Enters into Force: Getting Finance Right First

For too long, the high seas were the wild wild wet—a vast area beyond any nation's jurisdiction, open to exploitation, where the rules of responsible stewardship simply didn't apply. 

On 17January 2026, 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 (officially known as the BBNJ Agreement and also known as the High Seas Treaty) will enter into force. This marks a new era: one where nations accept shared responsibility for conserving and sustainably using marine biodiversity in areas beyond national jurisdiction.

After nearly two decades of negotiations, the Treaty reached the necessary 60 ratifications needed to enter into force in a little over two years after its adoption—remarkably swift by UN treaty standards. With 81 countries now ratified, this represents an unprecedented global commitment to protecting the areas beyond national jurisdiction (ABNJ)–the roughly 60% of our ocean outside any one nation's jurisdiction. The Treaty now has the potential to address biodiversity loss and ecosystem degradation across huge areas of ocean caused by climate change, pollution, and unsustainable use.

The BBNJ Agreement’s entry into force is cause for celebration. It addresses a critical gap in international law and the governance of the ABNJ, establishing comprehensive frameworks for managing marine genetic resources (MGR), creating new area-based management tools like marine protected areas in the ABNJ, conducting environmental impact assessments, and building the capacity of developing nations, as well as the transfer of technology. It will also play a significant role in achieving the target to protect 30% of coastal and marine areas by 2030—the 30x30 target. 

This celebration must mark a transition from negotiation to implementation, turning commitments into real-world conservation action. And the Treaty's ambitious vision means little without the financial mechanisms to implement it.

For Small Island Developing States (SIDS) and Least Developed Countries (LDCs) in particular—many of whom were first to ratify—access to adequate, predictable funding will determine whether the BBNJ Agreement delivers genuine equity or perpetuates existing inequalities in ocean governance.

The financial architecture

Article 52 of the BBNJ establishes a three-part financial mechanism. First, a voluntary trust fund will support developing country participation in meetings—an essential step required to facilitate equitable access and participation under the Agreement.  Second, the Global Environment Facility (GEF) trust fund, operating under the existing GEF infrastructure. Third, and most critical, an entirely new special fund, designed specifically for BBNJ implementation. Both the special fund and the GEF trust fund share the same mandate.

The special fund is a financial innovation particular to the BBNJ Agreement. Unlike traditional mechanisms, it will draw from multiple sources: mandatory contributions from developed countries, potential revenue from marine genetic resources, and voluntary contributions from both public and private sources.

This diverse funding base could provide more sustainable financing than traditional donor-dependent models, but it needs to be operationalised swiftly and effectively.

The good news is that developed States Parties have a binding obligation to contribute to the special fund once the Agreement enters into force. As of 17 January 2026, developed States Parties must make annual contributions equal to 50% of their assessed contribution to the BBNJ budget. This means the money is committed but cannot flow until the special fund's governance, banking arrangements, and access procedures are established. PrepCom 3 and the first COP must therefore prioritise operationalising these structures to translate obligations into accessible funding.

Here lies the challenge. Time. Comparable funds established under other multilateral environmental agreements have historically taken multiple years to become operational and provide funding to States parties. But the 12 months taken to operationalise the Loss and Damage Fund under the UNFCCC demonstrates that when States act decisively, funds are able to be operationalised quickly. 

With money ready to be used and development deadlines looming, it is critical that States work swiftly to operationalise the BBNJ financial mechanism. The ocean and developing countries need access to adequate and equitable funding urgently. Now is the time for the world to deliver this.

What to expect in 2026?

The BBNJ PrepCom meetings have run alongside the two year long ratification process with a goal to build the Treaty’s operational structure before official entry into force. These meetings lay the groundwork for how the Treaty will operate, and make recommendations for the first Conference of the Parties (COP1) to adopt. These recommendations include the governance, structures, tools and funding mechanisms needed to deliver the ambitious goals for high seas protection.  

The third and final session, PrepCom3, runs from 23 March to 2 April 2026, and carries extraordinary purpose. PrepCom2 made progress on institutional arrangements and began substantive discussions on the Memorandum of Understanding with the GEF. PrepCom3 must now deliver concrete outcomes that enable the special fund to begin operations quickly after COP1 (likely scheduled late 2026).

The work to be done

PrepCom 3 needs to identify the scale of assessed contributions from developed countries to the special fund. Article 14.6 mandates that developed State Parties contribute 50 percent of their assessed contribution to the overall BBNJ budget to the special fund. Yet budget questions remain unresolved: how large will the first budget be adopted at COP1, whether to base contributions on the UN scale of assessments, what adjustments to range and cycle may be necessary, what maximum individual contribution should be set, and how to account for the special circumstances of SIDS and LDCs. 

Without clarity on assessed contributions, the financial floor for the special fund cannot be established, and the fund's credibility as a sustainable financing mechanism for rapid operationalisation will remain uncertain. PrepCom 3 must produce concrete guidance on this critical issue, as States’ obligations come into effect immediately now that the agreement has entered into force, and practically the moment the first budget is adopted at COP1.

States will also have to agree on who will hold the monies in the interim before the operationalisation of the special fund. 

Steps to success

States must finalise recommendations on the special fund's governance structure, including its board composition, decision-making procedures, and hosting arrangements (including its relationship with the Secretariat for which Chile and Belgium have submitted bids), as well as the operationalisation process, timeline, and modalities for fund capitalisation and access. These institutional foundations will determine whether the fund can function efficiently whilst maintaining the accessibility and simplified procedures that Article 52 mandates. So far, there are proposals for a process to be initiated to undertake this work. 

Second, a key part of the operationalisation of the financial mechanism is focusing on resource mobilisation and capitalisation. The PrepCom and first COP must establish a novel and innovative financial architecture that is able to promote and encourage a wide range of sources, including assessed contributions, contributions from MGR, and, critically, new voluntary contributions from States and the private sector, including philanthropies, commercial corporations, and financial institutions. To operationalise this diverse funding base, States must agree on modalities for different funding instruments while ensuring streamlined procedures that reduce barriers to contribution. By widening the pool of resources, the BBNJ Agreement can provide adequate and equitable funding.

Third, there needs to be clear coherence between the special fund and GEF trust fund operationalisation to avoid duplication. PrepCom must establish what mechanisms and frameworks will enable the two funds to coordinate operationally and work together effectively. Additionally, PrepCom must address the issue of  GEF's existing operational capacity and the need for rapid special fund operationalisation—a sequencing challenge critical to both the timing of support to developing countries and the overall coherence of the financial mechanism.

Funding for the ocean’s future

The rapid ratification of the BBNJ Agreement demonstrates what global cooperation can achieve. Now comes the hard work of implementation. Without accessible, adequate funding mechanisms in place when the Treaty enters into force, developing States Parties will struggle to participate meaningfully in establishing marine protected areas, conducting environmental impact assessments, or benefiting from MGR.

The choices made at the March PrepCom and the first COP will determine whether the BBNJ Agreement delivers on its promise of equity and effective ocean stewardship, or whether it becomes another treaty whose ambitions exceed its means.

Eighty-one ratifications in just over two years showed what political will can accomplish. That same will must now extend to the less glamorous but equally critical task of operationalising the fund. The treaty is in force. The obligations are live. It’s time to deliver. 

The health of our ocean, planet and people cannot wait.

Dr Angelique Pouponneau and Torsten Thiele are Co-Chairs of the BBNJ Finance Advisory Group, hosted by the UNSW Centre for Sustainable Development Reform.