Important changes emanating from the Biological Diversity (Amendment) Act, 2023

The National Biological Diversity Act, 2002: Amendments and Implications

Introduction

The National Biological Diversity Act, 2002 was enacted with three main objectives: conservation of biodiversity, its sustainable use, and fair and equitable sharing of benefits arising from the utilization of biological resources. Recently, the Act has been amended through the Biological Diversity (Amendment) Act, 2023 (“the amendment Act”). This article discusses the key amendments introduced by the amendment Act and their implications.

Expansion of Scope and Exemptions

Under the amendment Act, Indian-controlled companies are exempted from falling under the definition of ‘body corporate, association or organization’ under Section 3 (2) (c) (ii). However, companies incorporated and registered in India but controlled by a foreign company are still within the purview of the Act.

Additionally, the amendment Act eliminates the requirement for prior approval from the National Biodiversity Authority (NBA) for Indian entities covered under Section 7 of the Act to obtain intellectual property rights (IPR). Instead, these entities must register themselves with the NBA before the grant of IPR. This streamlines the process and eliminates the need for signing access and benefit-sharing agreements with the NBA.

However, Indian nationals accessing biological resources for commercial utilization of IPR still need to give prior intimation to the State Biodiversity Board (SBB) and seek NBA approval. The amendment Act introduces a new provision stating that any person falling under Section 7 must seek prior approval from the NBA before the commercialization of IPR.

Penal Provisions

The amendment Act revises the penalty amounts for contravention of the Act, with a lower limit of INR one lakh and a maximum of INR fifty lakh. If the damage caused exceeds the penalty amount, the penalty shall be commensurate with the damage caused. In cases of continued failure or contravention, an additional penalty not exceeding INR one crore may be imposed. The amendment also abolishes imprisonment as a punishment and appoints an adjudication officer to impose penalties under the Act.

Extension of Exemptions

The amendment Act extends exemptions under the Act. For example, it provides exemptions for the use of agricultural wastes and cultivated medicinal plants and their products for entities covered under Section 7. This aims to facilitate fair trade and promote the herbal and ayurvedic medicine industry.

Furthermore, the exemption available to local people and communities, including growers, cultivators, and registered AYUSH practitioners, is extended. These individuals can access biological resources for commercial utilization without prior intimation to the SBB. Access to codified traditional knowledge, cultivated medicinal plants, and their products are also exempted from prior intimation to the SBB.

Redefinition of Biological Resources

The amendment Act redefines the term “biological resources” by introducing the phrase “derivatives of the biological resources with actual or potential use or value for humanity”. This expands the scope of the Act to include derivatives and biowaste with potential use to humanity. Previously, the term was limited to plants, animals, microorganisms, or parts of their genetic material.

Clarity and Simplification

The amendment Act introduces provisions to bring clarity and avoid confusion. For example, it defines the term “access” and clarifies the requirements for transferring research results. If the purpose of the transfer is further research, registration with the NBA is sufficient. However, if the purpose is commercial utilization or obtaining IPR, prior approval from the NBA is required.

Conclusion

The amendments introduced by the Biological Diversity (Amendment) Act, 2023 have significant implications for Indian entities and the protection of biodiversity. The amendments streamline processes, simplify patenting procedures, and provide exemptions that benefit local communities and promote ease of doing business. These changes align with the Sustainable Development Goals (SDGs) and contribute to the conservation and sustainable use of biological resources.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 15: Life on Land – The article discusses the National Biological Diversity Act and its amendments, which aim to conserve biodiversity and promote the sustainable use of biological resources.
• SDG 9: Industry, Innovation, and Infrastructure – The article mentions the amendments that provide relief for Indian entities to protect their intellectual property, which is related to innovation and industry.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally – The amendments to the National Biological Diversity Act aim to promote the sustainable use of biological resources and conservation of biodiversity.
• SDG 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending – The amendments provide relief for Indian entities to protect their intellectual property, which encourages innovation and research.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 15.2: Proportion of important sites for terrestrial and freshwater biodiversity that are covered by protected areas, by ecosystem type – The amendments to the National Biological Diversity Act aim to promote the conservation of biodiversity and the sustainable use of biological resources, which can be measured by the proportion of important sites for biodiversity covered by protected areas.
• Indicator for SDG 9.5: Research and development expenditure as a proportion of GDP – The amendments that provide relief for Indian entities to protect their intellectual property can encourage innovation and research, which can be measured by the research and development expenditure as a proportion of GDP.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: lexology.com

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.