The multilateral mechanism for the sharing of benefits from the use of digital sequence information on genetic resources

The multilateral mechanism for benefit-sharing from the use of Digital Sequence Information (DSI) on genetic resources (MLM) is an international ABS instrument under the Convention on Biological Diversity (CBD). The mechanism aims to facilitate the fair and equitable sharing of benefits arising from the use of DSI on genetic resources, in order to promote the conservation and sustainable use of biodiversity, and to enhance global capacities to generate and use DSI. Commercial users of DSI are expected to contribute financially to the MLM, while both commercial and non-commercial users are expected to share non-monetary benefits.

Objectives of the multilateral mechanism

The multilateral mechanism for benefit-sharing from the use of DSI on genetic resources (abbreviated as MLM) aims to:

  • ensure the fair and equitable benefit-sharing from the use of DSI on genetic resources from countries that are Parties to the CBD, in an efficient and effective manner;
  • facilitate financial contributions from the private sector to support conservation and capacity-building in developing countries;
  • facilitate non-monetary benefit-sharing by all DSI users.
  • maintain open access to DSI stored in publicly accessible databases, and a system that does not hinder research and innovation.

The MLM is based on two CBD decisions, in 2022 (Decision 15/9) and in 2024 (Decision 16/2). It should not be confused with the Multilateral System (MLS) for access and benefit-sharing under the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA).

Decision 15/9 outlines the requirements that the MLM has to adhere to, while Decision 16/2 provides further details about the modalities of the MLM, in particular the establishment of the Cali Fund for receiving and distributing financial contributions by companies and guidelines for publication of DSI and non-monetary benefit-sharing.

Scope

The MLM applies to all DSI that is made publicly available in genetic databases, including DSI obtained through international ABS instruments that have chosen to use the MLM as mechanism for benefit-sharing from the use of DSI, and DSI of which the mutually agreed terms (MAT) for acquiring the genetic resources from which the DSI was derived allow its publication in such databases (Article 1 of Annex, Decision 16/2).

Important to know for users is that some Parties to the CBD also have national regulations for the use of DSI, particularly for DSI derived from genetic resources obtained under the Nagoya Protocol. Users can check whether such regulations are applicable via the ABS Clearing-House.

Term explained

Digital Sequence Information (DSI)

The term Digital Sequence Information (DSI) was first introduced in 2016 during the CBD negotiations. However, no internationally agreed-upon definition exists for DSI. A 2018 study, commissioned by the CBD, made an analysis of the usage of DSI and components of the term:

  1. "Digital" refers to data stored electronically, such as on a computer or in data storage and not on paper;
  2. "Sequence" may refer to the order of nucleotides in nucleic acids or amino acids in proteins, although it is unclear if three-dimensional molecular structures are included under this terminology;
  3. "Information" that is obtained by processing data, such as cleaned DNA data from raw sequence data.

During a 2020 meeting of the Ad Hoc Technical Expert Group (AHTEG) on DSI on Genetic Resources, four possible DSI categories were considered:

  1. Narrow: DNA and RNA
  2. Intermediate: DNA, RNA, and proteins
  3. Intermediate: DNA, RNA, proteins, and metabolites
  4. Broadest: DNA, RNA, proteins, metabolites, and associated traditional knowledge, ecological interactions, etc.

The AHTEG agreed that the first three categories qualify as DSI, while the associated information in the fourth category would not qualify as such.

Instead of DSI as a term, scientists usually refer to genetic and/or nucleotide sequence data/information. DSI is stored in genetic databases. Apart from the well-known international databases like the European Nucleotide Archive, GenBank (USA), and the DNA Data Bank of Japan, which jointly form the International Nucleotide Sequence Database Collaboration (INSDC), there are thousands of databases that exist worldwide, and the number is growing (this website provides an overview of these databases).

With the rise of cheaper sequencing methods, the amount of generated DSI has increased significantly. This shift has transformed research and development (R&D) related to genetic resources since the CBD's adoption in 1992. Where original ABS policies assumed a simple relationship between one provider and one user of a genetic resource, research shows that scientists now simultaneously use DSI from dozens of countries. Therefore, Parties to the CBD have opted for a multilateral rather than bilateral approach for the sharing of benefits from the use of DSI.

Financial contributions via the Cali Fund

Commercial users of DSI on genetic resources are expected to financially contribute to the MLM. The Cali Fund is the designated entity for the reception and distribution of these contributions. The fund supports biodiversity conservation and its sustainable use in developing countries, particularly through supporting conservation by indigenous peoples and local communities, and helps strengthen global capacities to generate and use DSI. Thereby, the fund contributes to the goals of the Kunming-Montreal Global Biodiversity Framework that the CBD adopted in 2022.

Companies that exceed at least two out of three thresholds (assets: $20 million; annual revenue: $50 million; profit: $5 million; each averaged over the three proceeding years) are expected to contribute 0.1% of revenue or 1% of profit to the fund as an indicative rate of contribution. Currently, there are no legal obligations to contribute, although countries are invited to take administrative, policy or legislative measures to incentivize users in their jurisdiction to contribute to the Cali Fund in line with the modalities of the MLM (para. 13 Annex, Decision 16/2).

Sectors that are expected to contribute (Enclosure I, Decision 16/2):

  • pharmaceuticals
  • nutraceuticals
  • cosmetics
  • plant and animal breeding
  • biotechnology
  • laboratory equipment manufacturing
  • DSI-related research services (e.g. machine learning models)

Companies that make a contribution in accordance with the indicative rate receive a certificate from the Cali Fund secretariat. This certificate exempts the certificate holder from further payments for DSI under the MLM for the year in which the contribution was made.

The fund is managed by the Multi-Partner Trust Fund Office, which manages various funds of the United Nations. The Multi-Partner Trust Fund Office has a dedicated webpage on its website that will display private sector contributions to the Cali Fund and the projects enabled by them. The financial reporting on and monitoring and evaluation reports of these projects will also be made available here.

The CBD Secretariat has developed a simple guide to the Cali Fund for the private sector, which is accessible via this link.

The sharing of non-monetary benefit-sharing from DSI use

All DSI users (both commercial and non-commercial) are expected to share non-monetary benefits from the use of DSI (Annex para. 6, Decision 16/2). Decision 16/2 highlights that activities would have to support self-identified needs (by the recipients of such activities) related to technical and capacity development, including capacity-building for access to, generation, storage, and use of DSI on genetic resources (para. 7 of Annex, Decision 16/2). These activities complement non-monetary benefit-sharing obligations that follow from ABS regulations on genetic resources under the Nagoya Protocol (examples of non-monetary benefits are mentioned in art. 2 of the Annex, Nagoya Protocol.

Public research and databases

Academic researchers and public research institutions are expected to share non-monetary benefits from DSI use. They are not required to contribute financially to the Cali Fund (para. 9 of Annex, Decision 16/2), but may, like philanthropic institutions, decide to contribute voluntarily.

Furthermore, DSI can only be uploaded to publicly accessible databases if there are no restrictions to the publication under the mutually agreed terms (MAT) for obtaining the genetic resources from which the DSI was generated. Database managers should inform uploaders of DSI about the requirements to comply with relevant national and international ABS obligations (para. 10 sub b of Annex, Decision 16/2).

Databases should also require that researchers submitting DSI provide provenance data, including the country of origin of the genetic resource that the DSI is derived from, and if applicable, whether traditional knowledge associated with the genetic resource was accessed when generating the DSI (para. 10 sub c of Annex, Decision 16/2).

Relationship with Other ABS Instruments

The MLM is a separate ABS instrument under the CBD, not under the Nagoya Protocol. CBD Decision 15/9 indicates that the MLM does not override other international ABS obligations or national ABS laws and does not establish a hierarchy between international ABS instruments. It acknowledges that other treaties may adopt specialized ABS instruments which include DSI or opt to use the MLM for benefit-sharing from DSI use. CBD Decision 16/2 invites countries with national DSI regulations to use the MLM (Annex para. 26, Decision 16/2), in order to avoid multiple payment obligations for DSI users under both national and international ABS legislation for DSI.

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