FairWild and Access & Benefit Sharing (ABS)

Jump to sections of interest using the links below:

1. What is ABS?

2. What is the Nagoya Protocol

3. How does FairWild relate to ABS?

4. What examples are there of how FairWild complements ABS legislation?

5. What aspects of the Nagoya Protocol does FairWild not cover?

6. How do the FairWild premium fund payments relate to ABS payments?

7. Where can I find out more?

ABS stands for Access and Benefit Sharing – a term used in relation to fair and equitable sharing of the benefits arising from the use of genetic resources. This can include companies or researchers looking to develop new products from species, such as herbal remedies, pharmaceuticals, cosmetics, etc.

ABS principles intend to ensure that benefits (financial or technological) from use of genetic resources flow back to the “resource holders” (such as communities living in areas the resource was extracted from) and/or to traditional users of a resource (“traditional knowledge holders”).

The principles of ABS were recognised in Article 15 of the Convention on Biological Diversity (CBD), an international agreement aiming to conserve biological diversity, ensuring its sustainable use and fair and equitable sharing of the benefits arising out of the use of biological diversity.

Three principles underpin ABS: access to genetic resources must be subject to Prior Informed Consent (PIC) and must be based on Mutually Agreed Terms (MAT), including fair and equitable sharing of any resulting commercial benefits. Non-monetary benefit-sharing mechanisms may include access to and transfer of technology, the exchange of information, and technical and scientific cooperation. Access to biodiversity-related Traditional Knowledge (TK) must also occur with the approval of the holders of that knowledge, who must also participate equitably in the resulting benefits.

The Nagoya Protocol (full title: ‘Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization’) was created to provide greater legal transparency and certainty for providers and users of genetic resources. It provides the international framework for ABS. The Protocol was signed in 2010 during the 10th Conference of the Parties to the CBD (Convention on Biological Diversity) in Nagoya, Japan, and entered into force on 12 October 2014.

The Protocol sets out what national level measures should address in terms of managing access to genetic resources, benefit sharing, and addressing compliance, as well as establishing support mechanisms such as national focal points and the access and benefit sharing clearing house.

While the Nagoya Protocol is only applicable for genetic resources, national legislation often widens the definition and may include biological resources, too. It should be noted that ABS agreements may also be required in countries that are not signatories to the Nagoya Protocol and have no respective legislation, if the importing country is a signatory or if traditional knowledge is involved (Article 8(j) of the CBD).

For more information, see the Nagoya Protocol webpage and this factsheet.

Given the long history of traditional use of many wild plant species for medicinal and other uses, consideration of fair and equitable sharing of benefits derived from use of resources is a key part of FairWild.

The FairWild Standard is a practical tool to introduce the elements of equitable sharing of benefits from sustainable biological resource use, providing instrumental support to implement ABS requirements in practice. This includes reaching resource use agreements with harvesting communities (via Prior Informed Consent and Mutually Agreed Terms), robust resource management requirements, as well as a clear pathway for implementing the principles of benefit-sharing and equitable trade.

While the FairWild Standard v2.0 predated the Nagoya Protocol, it does include ABS elements as important components of sustainable use practices in Principle 4: respecting customary rights and benefits sharing, as well as in the related Performance Indicators. In particular, Principle 4.2 deals specifically with ABS agreements and agreements of resource access, as well as adherence with applicable national laws and international regulations on ABS (such as the Nagoya Protocol).

Article 9 of the Nagoya Protocol also encourages “sustainable use of [components of biological diversity]”, which directly intersects with the aims of FairWild.

The Guidance Manual for Implementation of Social & Fair Trade Aspects in FairWild Operations also elaborates details for implementing some aspects of ABS requirements in the context of FairWild operations.

While the Nagoya Protocol entered into force in 2014, it is mainly enacted through national legislation. To date, less than half of the Parties to the Nagoya Protocol have legislative, administrative or policy measures listed on the ABS Clearing House, while only 23 (18%) have issued internationally recognised certificates of compliance. There have therefore been few practical opportunities for FairWild certification to intersect with ABS legislation at present.

However, implementation of ABS principles has been a key part of the development and piloting process for the FairWild Standard, with lessons learnt from an implementation project in the Brazilian Amazon presented at a CBD expert meeting on ABS in Colombia as early as April 2010. The project and case-study promoted a better understanding of the implications of the use of biological resources and associated TK in the context of the FairWild Standard (see more information in Spanish).

FairWild certification has since been achieved by a wide range of collection operations, in different legal frameworks. Nature Connect, a collection operation in the Western Ghats, India, provides a practical example of implementing India‘s Biodiversity Act and in particular its commitments under the Nagoya Protocol.

At present, the focus of the certification audit is on the collection operation, and their relationship with collectors and communities. This contrasts with the focus of ABS under the Nagoya Protocol, which is principally about international relations.

The FairWild Standard and certification system largely apply requirements to wild collection operations, i.e. those businesses at the “green” end of the trade chain. While Principle 11 “Promoting Buyer Commitment” does apply to the buyers of FairWild certified ingredients, at present their fair trading obligations are assessed during a periodic “spot check” of FairWild registered businesses, rather than an annual certification audit, and do not (at present) specifically include compliance with ABS legislation.

Therefore, while FairWild is a practical tool to assist with ABS implementation in source countries (“country providing genetic resources” in CDB terminology), it does not provide third party certification of businesses (“users of genetic resources” in CDB terminology) in user countries in compliance with the requirements of the Protocol.

As part of the fair trade components of the FairWild Standard, buyers of FairWild certified materials pay an additional premium into a ringfenced fund for social development projects in the collectors’ communities. These payments are intended to serve the communities of collectors for FairWild certified collection operations - reflecting the efforts made by the collectors and all other actors in the supply chain to arrive at sustainable wild collection, production and sales of the respective final products.

For ABS, benefits agreed on may be monetary (e.g. royalties from developed products or agreed additional payments for purchase of resources) or non-monetary (e.g. sharing results of research or developed technology). Mechanisms of payments depend on the implementation measures in the country of the resources – they may be targeted directly to communities, or paid into a national fund and then disbursed. Benefits may be intended solely for the communities that resources are collected from, for the nation as a whole, or a combination of both.

Due to the different aims, scope and mechanisms of payments for the FairWild premium fund and ABS, ABS payments are not the same as FairWild premium payments, and hence usually the FairWild Premium should be paid in addition to any funds paid under the benefit-sharing agreement. 

However, the FairWild Standard does allow for certification in scenarios where a lower Premium contribution has been defined, provided a written justification and demonstration of adequate social impact of this FairWild Premium is prepared and submitted to the auditing Control Body. For example, if prices are much above the current five year price average, or, for very highly priced products, already provide a high overall income to the collectors. Monetary flows under ABS agreements could also potentially fulfil this requirement, if a sufficient justification was provided.

If you would like to learn more about ABS, the links below are a good place to start!

• Convention on Biological Diversity

• Nagoya Protocol

• ABS Clearing House

• Best practice guides on the ABS Clearing House

• CDB’s ABS Information Kit