Why this matters now
Nagoya Protocol is tested for: CBD Article 15 implementation; 3rd objective of CBD (fair + equitable benefit sharing); Prior Informed Consent (PIC) + Mutually Agreed Terms (MAT); access to traditional knowledge (Art 5.5); ABS Clearing-House; India’s Biological Diversity Act 2002 + NBA Chennai + ABS Regulations 2014; Divya Pharmacy v. UoI Uttarakhand HC 2018; Multilateral Mechanism on Digital Sequence Information (DSI) under COP15 Kunming-Montreal 2022 (Cali Fund).
Core Mechanism: PIC + MAT
When a user wants to access genetic resources or associated traditional knowledge for utilisation (research, commercial), they must:
- Obtain Prior Informed Consent (PIC) from the provider country/community.
- Establish Mutually Agreed Terms (MAT) — contract specifying how benefits will be shared.
- Benefits can be monetary (royalties, license fees, milestone payments) or non-monetary (technology transfer, training, capacity building, collaborative research).
Special provision for indigenous + local communities (ILCs):
- Art 5.5: sharing of benefits from utilisation of traditional knowledge associated with genetic resources requires the ILCs’ PIC + MAT.
- Recognises customary laws + community protocols of ILCs.
India Implementation
India ratified Nagoya Protocol on 9 October 2012. Already had foundational legislation:
- Biological Diversity Act 2002 + Biological Diversity Rules 2004 + ABS Regulations 2014 (Notification 21 Nov 2014).
- National Biodiversity Authority (NBA) Chennai — processes ABS applications from non-Indians.
- State Biodiversity Boards (SBBs) — process applications from Indians.
- Biodiversity Management Committees (BMCs) at panchayat level — maintain People’s Biodiversity Registers (PBRs).
Benefit-sharing in India: 1-5% of gross revenue (for traders) or 3-5% of ex-factory sale price (for manufacturers) typically — shared with biodiversity-providing community/state.
Divya Pharmacy v. UoI (Uttarakhand HC 2018): Patanjali’s subsidiary held liable to share benefits under BD Act 2002 even though it sourced biological resources within India. Re-affirmed at SC 2022.
Digital Sequence Information (DSI)
Modern challenge: DNA sequences can be digitised + transmitted globally without physical exchange of biological samples — circumventing ABS mechanism.
Kunming-Montreal GBF (CBD COP15 December 2022) agreed to establish a Multilateral Mechanism on DSI Benefit-Sharing:
- Cali Fund (CBD COP16 Cali Oct-Nov 2024): companies using DSI from CBD genetic resources contribute 1% of profits OR 0.1% of revenue to a global biodiversity fund.
- Aim: $1 billion/yr by 2030 for biodiversity conservation in developing countries.
- Voluntary for now but with strong moral pressure on pharma + cosmetics + biotech industries.
UPSC angle
Know NAGOYA PROTOCOL on Access to Genetic Resources and Fair & Equitable Sharing of Benefits (ABS) adopted 29 OCT 2010 CBD COP10 NAGOYA; IN FORCE 12 OCT 2014; 142 parties; OPERATIONALISES CBD ARTICLE 15; INDIA RATIFIED 9 OCTOBER 2012; CORE MECHANISM: PIC PRIOR INFORMED CONSENT + MAT MUTUALLY AGREED TERMS (contract specifying benefit sharing); BENEFITS: MONETARY royalties+license fees+milestone OR NON-MONETARY technology transfer+training+capacity+collaborative research; ART 5.5 traditional knowledge associated with genetic resources requires ILCs PIC+MAT, recognises customary laws+community protocols; INDIA IMPLEMENTATION: BIOLOGICAL DIVERSITY ACT 2002 + BD Rules 2004 + ABS REGULATIONS 2014 (Notification 21 Nov 2014); NBA NATIONAL BIODIVERSITY AUTHORITY CHENNAI processes ABS applications NON-INDIANS; State Biodiversity Boards (SBBs) process Indians; Biodiversity Management Committees (BMCs) panchayat level People’s Biodiversity Registers PBRs; BENEFIT SHARING 1-5% gross revenue traders OR 3-5% ex-factory sale price manufacturers; DIVYA PHARMACY v UoI Uttarakhand HC 2018 Patanjali subsidiary liable benefit-sharing under BD Act 2002 even for Indian biological resources re-affirmed SC 2022; DIGITAL SEQUENCE INFORMATION (DSI) modern challenge: DNA sequences digitised+transmitted globally circumventing ABS; Kunming-Montreal GBF CBD COP15 Dec 2022 Multilateral Mechanism on DSI Benefit-Sharing; CALI FUND CBD COP16 Cali Oct-Nov 2024 companies using DSI contribute 1% profits OR 0.1% revenue to global biodiversity fund $1 bn/yr by 2030 for developing countries (voluntary moral pressure pharma+cosmetics+biotech).
Frequently asked questions
What does Nagoya Protocol regulate?
Access to genetic resources + traditional knowledge associated with them, and the fair + equitable sharing of benefits arising from their use. Operationalises CBD Article 15.
What are PIC and MAT?
Prior Informed Consent (provider country/community agreement before access) + Mutually Agreed Terms (contract specifying how benefits will be shared).
How does India implement Nagoya?
Via the Biological Diversity Act 2002 + ABS Regulations 2014 + National Biodiversity Authority (NBA) at Chennai. Benefit-sharing 1-5% revenue typical.
What is the Cali Fund?
Established at CBD COP16 in Cali (Oct-Nov 2024) — voluntary mechanism for companies using Digital Sequence Information (DSI) from genetic resources to contribute 1% of profits or 0.1% of revenue to a global biodiversity fund. Target $1 billion/yr by 2030.