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Benefit Sharing from the use of DSI Digital Sequence Information

The UN Biodiversity Summit 2024 adopted key modalities for benefit-sharing for the utilisation of digital sequence information on genetic resources. Companies benefiting from DSI should contribute to a new fund which is aimed to supoort biodiverstiy conservation in the global south.

Decision on DSI at COP 16 in Cali, Colombia

DNA (Source: Gettyimages/enot-poloskun)

The status of "digital sequence information" ("DSI") on genetic resources under international law is controversial. Countries that have regulated access to their genetic resources fear that the free use of published sequence data can undermine benefit-sharing regulations.

The UN Biodiversity Conference in 2022 had already decided that there should be a multilateral benefit-sharing mechanism for DSI (MLM). At this year's conference in Cali, Colombia, modalities for this mechanism were discussed. After two intensive weeks of negotiations, key points for this mechanism were agreed. These include

  • A new fund is to be set up, the so-called Cali Fund, which will be managed by the UN Multi-Partner Trust Fund Office (MPTFO).
  • The decision sets payment expectations for companies above a certain size that benefit from the use of DSI. As an indicative payment rate 0.1 % of turnover or 1 % of profits are specified, which, for example, pharmaceutical companies, breeding companies or biotechnology companies are expected to pay into the fund annually.
  • Parties to the CBD and other countries are invited to take measures to incentivise such payments.
  • Many questions still need to be clarified regarding the administration and distribution of the money from the fund, which should be worked out by the next COP. Among other things, a steering committee is to be set up for these tasks.

Having in mind that this COP decision did not establish a legally binding benefit sharing instrument, companies are not obliged to pay. It will be up to each individual contracting party to implement the MLM nationally. However, before the first funds can be channelled into the new Cali Fund, it must first be established together with its administration. Rights under existing ABS agreements such as the Nagoya Protocol, the Plant Treaty or other agreements remain unaffected by the decision. Nevertheless, the implementation of the mechanism is intended to avoid duplicate payment expectations and to standardise processes in different agreements. 
As the Cali Summit has not yet been officially finalised, the content of the decision can currently only be found in a plenary document from the meeting (L-Document on DSI). 

Background on DSI discussions at the CBD

The status of "digital sequence information" ("DSI") on genetic resources under international law is controversial. Countries that have regulated access to their genetic resources fear that the free use of published sequence data can undermine benefit-sharing regulations.

Since the CBD Contracting Parties were unable to reach an agreement on a definition or concept of DSI, it remains to be a placeholder term. In 2018, Parties agreed on a science based discussion process aimed at overcoming the divergence of views at the upcoming UN-Biodiversity Conference in the context of the adoption of the post 2020 Global Biodiversity Framework.

In December 2022, the 15th COP 15 under the Chinese chairmanship adopted the Kunming-Montreal Global Biodiversity Framework (KM-GBF), which contains 4 long-term goals to be reached by 2050 and 23 action targets by 2030.

Regarding ABS, Goal C and action target 13 are important: They include the sharing of benefits for the use of genetic resources, for traditional knowledge associated with genetic resources and for digital sequence information on genetic resources. It calls for a significant increase in benefit sharing by 2030.

On DSI (Decision 15/9), Parties agreed to establish a multilateral mechanism for benefit sharing from the use of DSI. The decision contained a set of key criteria for the mechanism including not to hinder research and innovation, creating legal certainty, maintain open access to DSI, or to generate more income than costs. The mechanism is intended to contribute to supporting the Global South in achieving the biodiversity targets and to benefit indigenous peoples and local communities. An open-ended working group was set up to develop the mechanism. It met two times, in Geneva (end of 2023) and Montreal (mid-2024), but still left many detailed questions unanswered. 

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