Digital Sequence Information (DSI): Countdown to COP-16

Background

During the past few years, an international discussion has been taking place on whether and, if so, how the utilisation of Digital Sequence Information (DSI) on genetic resources should be subject to Access and Benefit-Sharing (ABS) obligations, like the utilisation of genetic resources already is. The main discussion forum is the Convention on Biological Diversity (CBD).

The Fifteenth meeting of the Conference of the Parties to the CBD (COP-15), which was held in Montreal, Canada, in December 2022, decided that a multilateral approach will be followed for benefit-sharing from the utilisation of DSI on genetic resources, with a global benefit-sharing fund. A follow-up process was set up to discuss modalities and details for operationalization of the multilateral DSI mechanism. The Ad Hoc Open-ended Working Group on Benefit-sharing from the Use of Digital Sequence Information on Genetic Resources (OEWG-DSI), a working group within the CBD, played a key role in this process.

In its First meeting in November 2023, the OEWG-DSI identified possible elements of a multilateral DSI mechanism. The elements were divided into those on which there was potential agreement and those on which there was a need for further discussion. The Working Group also agreed that informal intersessional work would be carried out in the period between its first and second meeting of the Working Group, including information-sharing and discussions in an Informal Advisory Group (IAG).

The Second meeting of the OEWG-DSI in August 2024

From 12 to 16 August 2024, the Second meeting of the OEWG-DSI was held in Montreal, Canada. During this meeting, possible elements of the multilateral mechanism were discussed. In preparation for the meeting, the CBD made various documents available, including a document with reflections of the co-chairs of the Working Group and a document with a synthesis of information. In the Annex of this synthesis document, 16 elements for the further development and operationalization of the multilateral mechanism were proposed. At the OEWG-DSI meeting, there appeared to be agreement on some issues, but not on some others.

Regarding payments to the benefit-sharing fund, there was agreement that only commercial activities should result in a monetary contribution. There was no agreement on whether commercial users in all countries should pay or only those in developed countries. In terms of 'triggers' for monetary benefit-sharing, the main options that came up were: 1. benefit-sharing should occur when a product based on the use of DSI is marketed; 2. companies in pre-identified sectors that depend on the use of DSI pay a percentage of their profits, revenue, or sales as benefit-sharing. There was agreement that all users of DSI should engage in non-monetary benefit-sharing.

With regard to payments from the benefit-sharing fund, there is agreement that it should primarily benefit the conservation and sustainable use of biodiversity and that a portion should go to Indigenous Peoples and Local Communities (IPLCs). However, there is no agreement yet on precise criteria, and there is disagreement on whether money should be able to go to all countries or only to developing countries. There is agreement, however, that IPLCs in all countries should be eligible. Furthermore, there is a difference of opinion about the placement of the fund, in particular whether the Global Environment Facility (GEF) is the right place to house the fund. Regarding disbursements by the fund, there are 2 options on the table: 1. through pre-approved projects; 2. through direct allocations to countries according to an agreed formula (with spending reporting afterwards). During the OEWG-DSI, the possibility of a combination of both options also came up.

The final document (draft recommendation) of the meeting still contains very much text in brackets, which means that there was no agreement on it, and it will have to be further negotiated.

The Sixteenth meeting of the Conference of the Parties of the CBD (COP-16) in October-November 2024

Further negotiations will take place during the Sixteenth meeting of the Conference of the Parties of the CBD (COP 16), to be held in Cali, Colombia, from 21 October to 1 November 2024, which will have to decide on the elements for operationalization of the multilateral mechanism for benefit-sharing from the utilisation of DSI on genetic resources, including the benefit-sharing fund. For the Netherlands and the EU it is important that the decisions comply with the principles that were agreed upon in 2022: the mechanism should be consistent with open access to data; it should be effective, efficient, feasible, and practical; it should generate more benefits than costs; it should provide certainty and legal clarity for providers and users; it should not hinder research and innovation; it should be compatible with international legal obligations; it should be mutually supportive of other ABS instruments; and it should take into account the rights of indigenous people and local communities.

Your questions and/or inputs are invited

If you have questions and/or would like to share your views on the DSI discussion in general and the proposed elements of the multilateral mechanism in particular, you are invited to contact Ms Kim van Seeters (ABS Competent National Authority; k.vanseeters@minlnv.nl) or Mr Martin Brink (National Focal Point on ABS; martin.brink@wur.nl).