New Rules for Access and Benefit Sharing of Biodiversity

General Studies Paper-3

Context: 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 rules are notified to streamline and regulate benefit sharing from the use of biological resources and associated knowledge.

What is Access and Benefit Sharing (ABS)?

• ABS refers to the framework through which benefits arising from the use of biological resources and associated traditional knowledge are shared fairly and equitably with the communities that have conserved these resources.
• It is a principle under the Convention on Biological Diversity (CBD).
• India operationalizes ABS through the Biological Diversity Act, 2002, and its recent amendment the Biological Diversity (Amendment) Act, 2023.

Key Features of the 2025 Regulation

• Turnover-Based Benefit Sharing:
  • Below ₹5 crore: Exempt from benefit sharing.
  • ₹5 crore–₹50 crore: 0.2% of annual 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 must file annual statements on resource usage.
• Inclusion of Digital Sequence Information (DSI): DSI now considered part of genetic resources, closing earlier loopholes where only physical materials were covered.
  • It aligns with the outcomes from COP16 of the Convention on Biological Diversity in Cali, Colombia.
• Cultivated medicinal plants are exempted, provided they are notified by the Ministry of Environment in consultation with the AYUSH Ministry.
• High-Value Resources: For resources of high conservation/economic value (red sanders, sandalwood, agarwood and threatened species), minimum 5% of proceeds from auction/sale must be shared.
  • This can go up to 20% in case of commercial exploitation.
• Intellectual Property Rights (IPR): Applicants for IPR involving biodiversity must disclose the use of biological resources and share benefits accordingly.
• Distribution of Benefits: 10–15% retained by the National Biodiversity Authority.
  • Remaining benefits directed to local communities and claimants through Biodiversity Management Committees (BMCs).

Significance of the New Regulation

• Addresses regulatory gaps: It includes DSI which was previously excluded under the 2014 guidelines.
• Transparency: Clear slabs promote predictability for industries like pharmaceuticals, cosmetics, and biotechnology.
• Supports cultivation: Encourages cultivation of medicinal plants over extraction from wild sources.