UN Nature Talks debate rules for genetic information. What does that mean?

Countries are expected to agree on how the world uses and pays for genetic information from nature at the UN Nature Summit COP16 this month, according to negotiators.

Experts refer to this data as “Digital Sequence Information,” or DSI for short. This is what you need to know about the lectures:

WHY DISCUSS GENETIC INFORMATION AT A NATURE SUMMIT?

The unique genetic codes and sequences in all living organisms contain the information they need to develop and function. For years, researchers have been mining the genetic codes of plants, animals and microbes in search of new compounds that can be used in drugs, cosmetics or other commercial purposes.

Biodiversity-rich countries, including tropical giants like Brazil and India, are wary of companies and researchers exploiting their biodiversity without paying compensation or royalties to the country from which a species comes.

In response, a complex system of laws regulating the use of genetic material has emerged. Laws vary widely from country to country, creating headaches for companies and making it difficult to share biological material for research purposes. This system has also brought little money to developing countries.

At COP16, countries aim to create a single multilateral system focused on generating conservation revenue from the use of DSI.

WHY IS IT CALLED “DIGITAL SEQUENCE INFORMATION”?

Advanced technologies now allow scientists to sequence entire genomes of living organisms in a matter of hours or days – work that would have taken years a few decades ago.

These genetic sequences are digitized and often uploaded to public databases, where they are stored for use by any researcher.

The COP16 discussions focus on the use of this digital information and do not address the actual samples and samples.

WHY IS DSI IMPORTANT FOR BUSINESSES?

While humans have benefited from nature for millennia – for example, using plants as medicine – research using digital genetic information represents the latest frontier in bioprospecting and is an important part of product development for industries such as pharmaceuticals, cosmetics, agriculture and advanced laboratory technologies.

Even stone-washed denim jeans get their striped quality from nature—specifically, enzymes developed from microbes found in super-salty soda lakes.

Companies could comb through tens of thousands or even millions of genetic sequences to develop medical treatments like the COVID-19 vaccines or new food options like nutrient-dense rice.

According to a study commissioned by the Secretariat of the UN Convention on Biological Diversity, the primary sectors linked to DSI generate $1.6 trillion in revenue annually, although this also includes sales of the products of these companies, which are unrelated have to do with genetic information.

The companies hope a deal will give them an easier way to pay for use of DSI and give the products they develop as a result a firmer legal status.

What might a deal at COP16 look like?

Negotiators are discussing several key questions: who should pay to use DSI, how much should they pay and how should the proceeds be used?

While a variety of options are on the table, a simplified approach would likely be to charge certain sectors, such as pharmaceuticals, a percentage of their sales or profits for the use of DSI databases, rather than just for what they use, Pay à la carte.

An agreement would also aim to determine how DSI revenue for conservation should be distributed. The options discussed range from making the money available directly to the states to setting up a system for applying for funding for individual nature conservation projects.

DSI is also used by nonprofit universities and institutes that want to advance scientific knowledge and conservation. Experts argue that any agreement must ensure free access for nonprofit research to benefit humanity.

How much money could this deal generate?

A United Nations-commissioned study published in July estimated that a fee of 0.1 to 1 percent on annual sales could generate between $1 billion and $10 billion annually in key sectors that use DSI.

Based on negotiations so far, that money would likely be used for conservation initiatives or to help poorer countries develop their own genetic research.

If an agreement is reached at COP16, it would be up to each country to implement the rules at the national level, as only they can force the industry to pay. This implementation process can take years.

For example, a DSI payment system that allows companies to sign up voluntarily could come to market more quickly and allow companies to use DSI at an agreed payment rate.