Practical guidelines for equitable sharing of benefits

of biological resources in BioTrade activities

Maria Julia Oliva

UNCTAD BioTrade Facilitation Programme

UNCTAD BioTrade Initiative

Promoting trade and investment in biological resources in support of sustainable development, in line with the objectives of the CBD.

BioTrade -> activities of collection, production, transformation, and commercialisation of goods and services derived from native biodiversity, under criteria of environmental, social and economic sustainability.

Network of national and regional BioTrade programs

Bolivia, Brazil, Colombia, Costa Rica, Ecuador, Paraguay, Peru,

Uganda, Venezuela, and Vietnam

National BioTrade Program Colombia

BioTrade Facilitation Programme (BTFP)

Supporting, inter alia: • generation of demand-driven information on markets, legal,

sustainability issues among others;• development of methodological approaches, best-practices, and

guidelines; and • facilitation for exchanging experiences among BioTrade partners.

To enhance sustainable bio-resource management, product development, value-added processing and marketing.

BioTrade Principles and Criteria

Principles guiding all activities of BioTrade Initiative and its partners

1. Conservation of biodiversity2. Sustainable use of biodiversity3. Equitable sharing of benefits derived from the use of biodiversity4. Socio-economic sustainability 5. Compliance with national and international legislation and agreements6. Respect for the rights of actors involved in BioTrade activities7. Clarity about land tenure, use and access to natural resources and

knowledge.

Both criteria and indicators support these principles.

Value chain approach

A verification framework for BioTrade activities

International standard that defines general requirements for organizations to comply with BT P&C, with specific application to native natural ingredients.– Technical assistance– Union for Ethical BioTrade– Increase demand for BioTrade products– Used for verifying compliance with the BT P&C or as a basis to

develop bridging certification protocols with existing certification schemes.

Benefit-sharing and the BioTrade verification framework

3.1 Negotiations and implementation of agreements related to benefit sharing shall be transparent, long-term and based on trust and dialogue

– 3.1.1 Mechanisms to ensure inclusive and balanced representation of actors along the value chain are in place

– 3.1.2 Production and exchange of relevant information occurs in a culturally meaningful and transparent manner

– 3.1.3 These mechanisms have been developed in collaboration with actors

– 3.1.4 Procedures have been defined and implemented to evaluate the needs of actors in the value chain and resolve conflicts

– 3.1.5 Actors directly involved in the collection, production, transformation and commercialization of the product are present or are represented in these negotiation processes.

– 3.1.6 Actors are empowered to use the established mechanisms for transparency and dialogue, if necessary with the support of a third party

Benefit-sharing and the BioTrade verification framework (cont)

 3.2 Prices shall reflect the cost of production, including an adequate profit margin and thus ensure adequate compensation

– 3.2.1 Minimum requirement: The organization avoids immoral transactions in business relations according to international covenants, national law and practices (OECD guidelines for multinational enterprises and UN Convention on Contracts for the Sale of Goods). 3.2.2 Prices are based on negotiations that meet the criterion 3.1. and are reversible or renegotiable.

– 3.2.3 These negotiations are based on sufficient information, according to the specific conditions.

– 3.2.4 At a minimum, prices cover the cost of production, including the requirements of this verification framework, and a reasonable profit margin. Whilst remaining sustainable, prices match or exceed local market prices, if these exist.

– 3.2.5 Agreed commitments shall be properly documented according to local reality.  

Benefit-sharing and the BioTrade verification framework (cont)

 3.3 The organization shall generate sustainable local development

– 3.3.1 The organization generates employment at a local level.

– 3.3.2 The organization recognizes legal, commercial and equitable basis of its cooperation in sustainable local development

– 3.3.3 The organization promotes sustainable improvement in the quality of life of the people and communities living in or around it.

– 3.3.4 The organization participates in activities of sustainable local development in coordination with local authorities and civil society.

– 3.3.5 There is a baseline that identifies the conditions in the area before the organization’s intervention.

– 3.3.6 Local communities recognise that the activities carried out by the organization promote desirable local development.

   

Benefit-sharing and the BioTrade verification framework (cont)

3.4 Use of traditional knowledge shall be recognized, promoted and adequately compensated

– 3.4.1 The organization has policies steered towards maintaining and/or placing value on traditional practices related to good management practices of natural resources.

– 3.4.2 Ownership of intellectual property rights is shared with the holders of the traditional knowledge or their delegated representative(s).

– 3.4.3 The use of traditional knowledge shall respect customs, values and traditional practices of the relevant communities is via their prior informed consent.

   

Guidelines for Benefit-sharing

• Building trust between actors in the value chain– Mechanisms for participation, information-exchange, and dialogue– Determination of reliable and relevant information in the course of

negotiations and implementation– Way in which this information must be presented so that it can be

understood and used competently

• Enhancing business and legal skills for producers and communities– Ways of supporting the collectors’ or producers’ capacity to effectively

negotiate and implement benefit-sharing agreements – Raising the business and legal awareness of producers is also

important to increase their reliability as business partners and to avoid situations of commercial dependency

– Increasing understanding to rights and approaches in relation to traditional knowledge

Guidelines for Benefit-sharing (cont)

• Promoting fair and equitable commercial relationships– An adequate price for the natural ingredients – most importantly

at the primary producer level• Taking into consideration sustainable production costs, needs,

minimum wages, market prices, profit margins, etc.

– Other benefits negotiated in the context of the commercial relationship to complement or enhance the specific payment for goods and services, such as long-term contracts or the setting up of funds.

• Encouraging broader cooperation and benefit-sharing– Ways to recognize that often the community as a whole is

responsible for or involved in the conservation and sustainable management of the resources

Guidelines for Benefit-sharing (cont)

Better recognition of the value of traditional knowledge

• As a cross-cutting issue• In particular,

– If traditional knowledge is relevant for the management of the biological resources and/or in the development and commercialization of the product, ways to specifically recognize such relevance in the sharing of benefits;

– Adequate discussion of the intellectual property policy of the different actors, which may include consideration of joint ownership of intellectual property rights and of distribution of the royalties arising out of licensing;

– Even when there is no direct contribution of traditional knowledge into the value chain, ways in which the agreement can contribute to the appreciation and conservation of the traditional knowledge of the area or country; and

– Measures to ensure that the management of biological resources and the development and commercialization of the product respect the customs, traditions, values and traditional practices of the relevant communities.

Concluding thoughts

• Objectives and scope of BioTrade benefit-sharing guidelines – limitations and opportunities

• Implementation and potential cooperation