The National Biodiversity Authority approved a set of reforms at its 77th meeting in Chennai to streamline the use of Access and Benefit Sharing (ABS) funds and strengthen the governance of biological repositories under the Biological Diversity Act, 2002. These reforms address a persistent implementation gap: how to distribute ABS proceeds when the original source of a biological resource or its beneficiaries cannot be clearly identified.
ABS mechanisms require entities accessing India’s biological resources to share monetary benefits. However, fragmented records and unclear provenance have limited the effective flow of these funds to local communities. The new framework establishes standardised distribution formulas and clearer institutional roles, ensuring that funds are channelled toward biodiversity conservation and community development even when attribution is incomplete.
For resources sourced from repositories where the origin is known, 25-40% of the funds go to the institution for conservation work, while the remaining 60-75% is distributed to local beneficiaries. In cases where the source is unclear, a standard 30% (Institution) and 70% (NBA/State Biodiversity Boards (SBBs)) split has been established.
The policy also strengthens traceability and compliance through updated guidelines for designated repositories. By mandating digitisation of voucher specimens and improving provenance documentation, the NBA aims to create a more transparent and verifiable system for tracking biological resources across research and commercial use.
Key Policy Changes
Standardised Sharing Formula: Establishes a 70:30 split (NBA/SBBs to Institutions) for ABS funds when origin information is inadequate.
Institutional Incentives: Allocates up to 40% of ABS funds to repositories and institutions that add value or document biological resources.
Mandatory Digitisation: Requires designated repositories to digitise voucher specimens to aid in remote identification and verification.
Provenance Tracking: New guidelines emphasise robust documentation of "provenance records" to ensure every accessed specimen can be traced back to its source.
Flexible Distribution: Allows for adjusted fund proportions based on the level of value addition performed by an institution.
Strategic Deployment: Funds from widely distributed resources or traders will now be used by SBBs and UT Biodiversity Councils for regional conservation and sustainable management.
What is "Access and Benefit Sharing" (ABS)?
Access and Benefit Sharing (ABS) is a fair-trade mechanism where users of biological resources (like pharmaceutical or cosmetic companies) share the benefits with the local communities who have protected those resources for generations.
When a company uses a local plant or traditional knowledge to create a product, they pay an ABS fee. The National Biodiversity Authority ensures this money doesn't just sit in a bank; it is used to fund local schools, improve village infrastructure, or restore the local ecosystem. The new 2026 guidelines make this process faster and more predictable, especially when it's hard to find the exact "home" of a specific plant.
Policy Relevance
Ensures Equitable Wealth Distribution: By fixing the community share at a minimum of 60-70%, the policy prevents institutional gatekeeping and ensures that local guardians of biodiversity receive the majority of financial benefits.
Enhances Traceability: The move toward digitisation and provenance records makes it harder for bio-piracy to occur, as every specimen in a repository will have a clear, verifiable "digital birth certificate".
Boosts Institutional Research: By guaranteeing a 25-40% share for repositories, the NBA provides a sustainable funding stream for scientific institutions to continue their documentation and conservation efforts.
Supports Regional Development: Channelling funds through State Biodiversity Boards (SBBs) ensures that biodiversity conservation is linked to local socio-economic growth, making conservation a viable livelihood for rural communities.
Relevant Question for Policy Stakeholders: How will the new ABS sharing formula ensure that local communities receive timely and equitable benefits, especially in cases where resource origin remains uncertain?
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