Montreal -Canada
The UN Convention on Biological Diversity has put out plans for a new international system and fund. This system aims to unlock significant funding for conserving and sustainably using biodiversity.
The proposals and options aim to fulfil a global commitment to equitably share revenues and benefits from products utilising “digital sequence information on genetic resources,” including DNA sequences of plants, animals, and microbes.
These efforts are designed to ensure that countries and communities receive fair compensation for the use and commercialisation of genetic resources, potentially generating significant revenues derived from industries such as pharmaceuticals, cosmetics, and agricultural biotechnology.
The goal is to establish mechanisms that promote fairness, transparency, and sustainability in benefit-sharing while supporting biodiversity conservation and the rights of Indigenous peoples and local communities globally.
Also focuses on how companies benefit from using genetic information from plants, animals, and other organisms in products like medicines, cosmetics, and bioplastics.
Parties to the Convention agreed in 2022 to create this system to ensure fair sharing of these benefits. Currently, negotiations are ongoing, led by Malawi and the United Kingdom, to finalise how this system will operate globally.
The proposals will be discussed by CBD parties in August, just before COP16 in October, marking a crucial step in this process.
A positive outcome from the UN Convention on Biological Diversity’s proposed multilateral mechanism could significantly narrow the gap in fair benefit-sharing from genetic resources. This initiative, pledged by 196 parties at COP 15 in 2022, aims to address longstanding disparities in how benefits from products using “digital sequence information” (DSI) are distributed.
The upcoming negotiations in Montreal from August 12-16, leading up to COP 16 in Cali, Colombia in October, are crucial. Nations will discuss key questions, such as which industrial sectors, like pharmaceuticals, cosmetics, seeds, and agricultural biotechnology, should contribute to and benefit from this mechanism.
This process seeks to establish clear guidelines for equitable revenue distribution, potentially unlocking substantial funds to support biodiversity conservation and sustainable development globally.
Reflecting on the significant economic impact of sectors reliant on Digital Sequence Information (DSI), the Co-Chairs of the negotiations, Mphatso Kalemba of Malawi and William Lockhart of the UK, highlight the potential for substantial financial contributions.
Industries utilising DSI generate annual revenues ranging from one to a few trillion dollars. Even a small percentage contribution, such as 0.1% of $1 trillion, could yield $1 billion for the global fund, while 1% would amount to $10 billion.
The envisioned uses of these funds are expansive and include crucial support for conservation efforts and sustainable use of nature worldwide.
This includes empowering Indigenous Peoples and Local Communities in their biodiversity stewardship roles and enhancing global capacity for generating and utilising DSI.
This financial mechanism aims to harness the economic benefits derived from genetic resources to foster environmental sustainability and equitable development on a global scale.
As noted in the documents prepared for the meeting: “While all producers of products developed through the use of DSI or all companies operating in sectors that are highly dependent on DSI would be encouraged to contribute, the main focus would be on large and transnational producers or companies.”
“The scale of the contributions to the fund should take into account the overall intended scale of the fund, the number of contributors, the degree to which revenue generated is dependent on the use of DSI, and the potential impact of the contribution on business activity and consumers.”
As well, adds the synthesis note, contributions should be “proportionate and reasonable, in the sense that businesses are not burdened with unsustainable costs, and that additional costs are not so significant that they are passed through to consumers in a way that might generate new inflationary pressures.”
Potential trigger points for contributions identified by the Co-Chairs:
When a product developed through the use of DSI is placed on the market, users would be expected to contribute.
When revenue is generated in a sector highly dependent on the use of DSI, companies would be expected to contribute a proportion of their total revenue generated.
Production of the documents stems from a 2022 agreement by the UN Convention on Biological Diversity’s 193 Parties to establish a global fund within a new multilateral mechanism for DSI benefit sharing.
Various options for disbursing funds are addressed, as well as options for governance of the mechanism, and how to share non-monetary benefits of DSI-related science, including capacity building, technology transfer, research results, and joint research partnerships.
Looking forward, CBD’s DSI working group negotiators will make recommendations to be taken up at the next biodiversity summit, which will include COP16 (Cali, Colombia, 21 October – 1 November).
Says David Cooper, CBD’s Acting Executive Secretary: “Until now, users of information on genetic resources have shared little of the profits generated from their use.”
“The need to address this issue was settled at COP-15, in Montreal as part of the deal that also included the Kunming-Montreal Global Biodiversity Framework – “the Biodiversity Plan.”
These documents consider the many questions and challenges ahead and propose some options for the mechanism’s efficient, effective operation, including a new fund that could support those who are protecting biodiversity around the world, especially indigenous peoples and local communities around the world.
“We have faith that the goodwill and positive and constructive spirit of compromise Parties have shown to date on this issue will continue through the negotiations in Montreal and Cali,” he adds.
Says Mphatso Kalemba of Malawi, Co-Chair of the negotiations: “The world has been presented with an opportunity to mobilise additional resources for biodiversity conservation and sustainable use whilst enhancing benefits from the use of DSI through this mechanism and its fund. I hope that delegates will work hard in Montreal to unpack that solution to the world.”
According to William Lockhart of the UK, Co-Chair of the negotiations: “It has been a privilege to work with Governments, researchers, indigenous peoples, NGOs and others to prepare these proposals. By sharing the benefits from the use of DSI, and using those benefits to protect nature, we will collectively ensure that nature’s wonders remain available to the next generation of scientists. We are looking forward to a positive round of negotiations in Montreal ahead of COP16.”
About the CBD
Established in 1992, the CBD is an international treaty for the conservation of biodiversity, the sustainable use of the components of biodiversity, and the equitable sharing of the benefits derived from the use of genetic resources.
With 196 Parties, the CBD has near universal participation among countries. It helps to address threats to biodiversity and ecosystem services through scientific assessments, the development of tools, incentives and processes, the transfer of technologies and good practices and the active involvement of relevant stakeholders, including indigenous peoples and local communities, youth, women, NGOs, sub-national actors, and the business community.
The Cartagena Protocol to the CBD that entered into force in 2003 and currently has 173 Parties aims to safeguard biological diversity from potential risks posed by genetically modified organisms (GMOs) resulting from biotechnology.
It focuses on the safe transport, handling, and use of living-modified organisms, considering their potential adverse effects on biodiversity and human health. It also has a supplementary protocol on liability and redress.
The Nagoya Protocol to the CBD entered into force in 2014 and has 141 Parties. It provides a transparent bilateral legal framework to providers and users for the fair and equitable sharing of benefits derived from genetic resources.
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