UN Proposes Multilateral Fund to Share Benefits of Genetic Resources
Context: In August 2024, international delegates will gather to discuss a milestone proposal relating to a multilateral fund for sharing the benefits derived from digital sequence information (DSI).
- The proposal emerges ahead of the final talks in the (Convention on Biological Diversity) CBD’s DSI negotiating group in Montreal, aiming to set the stage for discussions at the COP16 UN biodiversity summit in Cali, Colombia.
Key Highlights:
- The outcome of the negotiations will influence discussions on comparable multilateral funds within the Food and Agriculture Organization’s International Treaty on Plant Genetic Resources for Food and Agriculture, and the World Health Organisation’s Pandemic Treaty.
- While all companies using DSI would contribute to the fund, the main focus would be on large and transnational producers or companies.
- UN documents released on July 1, 2024, indicate that the revenue from products such as medicines, cosmetics, and agricultural biotechnology could amount to billions of dollars.
- For instance, a mere 0.1% of $1 trillion would yield $1 billion for the global fund, while 1% would amount to $10 billion.
Background:
- Traditionally, companies obtained genetic material directly from the environment. This system required them to share benefits with the communities that protected those resources.
- Companies are turning to DSI from open-source databases instead.
- This allows them to avoid sharing benefits, which is a violation of the Convention on Biological Diversity (CBD).
- Sharing benefits is a core principle of the CBD, but it lacks guidance in situations where only genetic material DSI is used.
What is DSI?
It refers to genetic information obtained from plants, animals, and microbes.
It can include things like nucleic acid sequences and protein sequence data. There is currently no agreed-upon definition for the scope of DSI.
- A Multilateral Fund for Benefit Sharing: At the 15th Conference of the Parties (COP15) held in December 2022, CBD parties pledged to establish a new multilateral mechanism.
- A global fund supporting nature conservation, sustainable use, and related activities of Indigenous Peoples and Local Communities.
Challenges and opportunities:
- There are concerns that this contribution could hurt business activity and consumer spending.
- The documents emphasise that the contribution should be reasonable and manageable for businesses to ensure they do not face unaffordable costs.
- Any additional expenditure should not burden consumers or create inflationary pressures.
Way Forward: While all companies using DSI are expected to contribute, the primary focus will be on large and transnational producers. The proposals will be discussed in Montreal in August, with the final decision likely to be taken at the UN Biodiversity Conference (COP 16) between October 21 and November 11.
