ACCESS AND BENEFIT SHARING: ENVIRONMENT

ACCESS AND BENEFIT SHARING: ENVIRONMENT

NEWS: Access and Benefit Sharing: New rules for use of biodiversity put in place by Centre

WHAT’S IN THE NEWS?

India's 2025 Biodiversity Regulation strengthens the Access and Benefit Sharing (ABS) framework by including digital sequence information, introducing turnover-based benefit sharing, and ensuring equitable distribution of benefits to local communities. It aligns with global standards like the Nagoya Protocol and promotes sustainable and regulated use of biological resources.

Context: New Biodiversity Regulation Notified in 2025

  • The National Biodiversity Authority (NBA) has notified the Biological Diversity (Access to Biological Resources and Knowledge Associated thereto and Fair and Equitable Sharing of Benefits) Regulation, 2025.
  • The regulation aims to streamline access to biological resources and ensure fair and equitable benefit sharing (ABS) with communities involved in their conservation and knowledge systems.

What is Access and Benefit Sharing (ABS)?

  • ABS is a principle under the Convention on Biological Diversity (CBD).
  • It refers to the mechanism by which benefits from the use of biological resources and associated traditional knowledge are equitably shared with the local and indigenous communities that conserve these resources.
  • India operationalizes ABS through:
  • Biological Diversity Act, 2002
  • Biological Diversity (Amendment) Act, 2023
  • Biological Diversity Regulation, 2025 (latest update)

Key Features of the Biological Diversity Regulation, 2025

1. Turnover-Based Benefit Sharing System

  • Introduces a tiered structure to determine benefit-sharing obligations based on annual turnover:
  • Below ₹5 crore: Exempted from benefit sharing.
  • ₹5 crore–₹50 crore: 0.2% of gross ex-factory sale price (excluding taxes).
  • ₹50 crore–₹250 crore: 0.4% of annual turnover.
  • Above ₹250 crore: 0.6% of annual turnover.
  • Entities with turnover above ₹1 crore are mandated to file annual statements detailing the biological resource usage.

2. Inclusion of Digital Sequence Information (DSI)

  • DSI, i.e., digital genetic data, is now treated as part of biological resources under ABS.
  • This closes a major loophole where benefits from digital use of resources (e.g., genome data) were previously unregulated.
  • Aligns with outcomes of COP16 of CBD (Cali, Colombia).

3. Cultivated Medicinal Plants – Exemption

  • Medicinal plants grown under cultivation are exempted from benefit sharing.
  • However, this applies only to plants notified by the Environment Ministry in consultation with the AYUSH Ministry.

4. High-Value Biological Resources

  • For resources like red sanders, agarwood, sandalwood, and threatened species:
  • A minimum of 5% of proceeds from auction or commercial sale must be shared.
  • In case of commercial exploitation, benefit sharing may go up to 20%.

5. Intellectual Property Rights (IPR)

  • Applicants seeking patents or other IPR involving biological resources must:
  • Disclose the use of biodiversity during application.
  • Share benefits accordingly under the regulation.

6. Distribution of Benefits

  • Collected benefits will be distributed as follows:
  • 10–15% retained by the National Biodiversity Authority (NBA).
  • Remaining 85–90% directed to:
      • Local communities
      • Knowledge holders
      • Through Biodiversity Management Committees (BMCs) at local levels.

 

Significance of the 2025 Regulation

  • Fills Regulatory Gaps:
  • DSI, absent from 2014 guidelines, is now explicitly included.
  • Addresses ambiguities on benefit calculation and resource classification.
  • Promotes Transparency and Predictability:
  • Clear turnover-based slabs reduce compliance uncertainty for industries.
  • Encourages better industry participation, especially in pharmaceuticals, biotech, and cosmetics.
  • Supports Cultivation and Conservation:
  • By exempting cultivated medicinal plants, the regulation incentivizes farming over wild extraction, promoting sustainability.
  • Aligns with International Norms:
  • Incorporates outcomes from CBD’s COP16 and Nagoya Protocol, making India’s system globally compatible.

Nagoya Protocol – International Context

  • Adopted: 2010 in Nagoya, Japan.
  • Came into force: 2014.
  • A supplementary agreement to the Convention on Biological Diversity (CBD).
  • Focuses on fair and equitable benefit sharing arising from the use of genetic resources.
  • Provides a transparent legal framework for the implementation of ABS.
  • India is a party to the Nagoya Protocol and has aligned its national law accordingly.

Conclusion

  • The 2025 Regulation strengthens India’s biodiversity governance, making access and benefit sharing more transparent, inclusive, and equitable.
  • It encourages sustainable use, protects community rights, and promotes commercial accountability.
  • As climate change, biopiracy, and digital exploitation of resources grow, such legal updates are crucial for sustainable development and biodiversity conservation.

 

Source: https://www.downtoearth.org.in/wildlife-biodiversity/access-and-benefit-sharing-new-rules-for-use-of-biodiversity-put-in-place-by-centre