The recently concluded United Nations Biodiversity Conference (COP16) in Cali, Colombia, ushered in a historic agreement on how to share benefits from the use of genetic information sequenced from the natural world. The agreement has been hailed by some as a turning point in global biodiversity conservation and a victory for the countries and communities that safeguard nature.
The agreement on what is known as digital sequence information (DSI) says companies that use genetic data – including those in the pharmaceutical and agriculture sectors – should pay into what is now called the “Cali Fund”. To be operated by the UN, it will channel money toward conserving and sustainably using biodiversity.
The deal comes two years after countries inked the Kunming-Montreal Global Biodiversity Framework, a landmark deal to halt and reverse nature loss.
To better understand what exactly DSI is and how the new agreement will affect biodiversity, we recently sat down with Neville Ash, Director of the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC).
UNEP: Why is DSI in the news now?
Neville Ash (NA): The private sector relies heavily on digital sequencing information. Genetic data is the basis for a host of products, from cosmetics to medicine. While DSI is often used by private companies, it’s a public good and countries have been clear – the benefits from it should be shared.
The deal agreed to at the biodiversity COP16 has been hailed as a gamechanger. How much money could it generate for safeguarding biodiversity?
NA: The agreement reached is that companies should contribute 1 per cent of their profits or 0.1 per cent of their revenue to the funding mechanism. That could stretch into the tens of billions of dollars across the sectors implicated.
Who are the big users of digital sequencing information on genetic resources?
NA: Sectors that either directly or indirectly benefit from DSI include the pharmaceutical industry, food and healthcare industries, companies that specialize in agricultural biotechnology, brewing and cosmetics.
Where does this genetic information come from? Plants or animals?
NA: Every living thing potentially – bacteria, fungi, plants, insects and other animals. Industrial biotech firms, for example, use bacterial DNA for producing enzymes for use in food and drinks.
So, how is digital sequencing information gathered?
NA: Traditionally, it was relatively straightforward. A researcher would visit a natural environment, such as a coral reef, a rainforest or a desert, and find living things with desirable traits, such as drought-tolerant plants. They would then sequence the DNA and study which parts of the genetic code might be leading to the properties of interest.
You said traditionally. Is it different now?
NA: Over time, massive online databases of genetic sequences have been created, containing billions of sequences of DNA or RNA. Now, instead of physically collecting living samples for analysis, researchers can access these publicly-available digital sequencing data online. Artificial intelligence can further analyze many combinations of these sequences, allowing endless possibilities to be tested for useful traits that can then be incorporated into commercial products.
Has the fact that this information is now available online democratized access to it?
NA: Unfortunately, not yet. Much of the genetic information in these databases comes from the developing world. But it is mostly rich, industrialized countries where these technologies are being deployed.
What is UNEP doing when it comes to digital sequencing information?
NA: UNEP hosts the Secretariat to the Convention on Biological Diversity (CBD), whose parties agreed on the mechanism for the fair and equitable sharing of benefits from the use of DSI. To ensure these discussions led to a future-proof mechanism, UNEP worked with the CBD to conduct a scoping study on the future use of DSI. Additionally, we've been supporting discussions to develop an allocation formula that will determine how funding is distributed to countries.
How would money be allocated under the new agreement?
NA: This is still a work in progress, but there’s an emerging sense that the allocation could be based largely on the importance of a country's biodiversity, with an assumption that countries with higher biodiversity values are more likely to have been sources of genetic code found in DSI databases.
Is the new agreement on DSI what you had hoped for or has it fallen short?
NA: The agreement reached at the biodiversity COP16 has enabled the DSI mechanism to get up and running – it can now be set up and the “Cali Fund” can start to receive contributions. Sure, there’s more to be done at the next UN Biodiversity Conference, such as deciding on the details of how funding will be disbursed. The entire mechanism will need to be kept under review and will likely evolve further in the years ahead. But governments can now move ahead to put in place the national measures that are required to make it work.
Now that the agreement has been reached, what are the next steps in its implementation?
NA: Now that the global Cali Fund will be set up, countries will put in place national measures to incentivize payments from large companies, and there will be a process leading up to COP17 to further determine some of the details of the mechanism. Discussions at COP17 will then pick up on disbursement arrangements and the further refinement of the scope of contributors and contribution rates, amongst other issues. The most important milestone ahead will be when contributions start to come in, and it will be interesting to see where these first payments come from. Who will show leadership amongst governments and companies? And where will the DSI champions be found?
The planet is experiencing a dangerous decline in nature. One million species are threatened with extinction, soil health is declining and water sources are drying up. The Kunming-Montreal Global Biodiversity Framework sets out global targets to halt and reverse nature loss by 2030. It was adopted by world leaders in December 2022. To address the drivers of the nature crisis, UNEP is working with partners to take action in landscapes and seascapes, transform our food systems, and close the finance gap for nature.
