UNCTAD BioTrade Initiative BioTrade Principles and Criteria

United Nations Conference Trade Development UNCTAD BioTrade Initiative BioTrade Principles Criteria UNITED NATIONS York Geneva, 2007 ii NOTE views expressed volume authors necessarily reflect views United Nations Secretariat. designations employed presentation material imply expression opinion whatsoever part United Nations Secretariat legal status country, territory, city area, authorities, delimitation frontiers boundaries. Material publication freely quoted reprinted, acknowledgement requested, reference document number. copy publication quotation reprint UNCTAD secretariat. information BioTrade Initiative UNCTAD, check website: http//www.unctad.org/biotrade contact: biotrade@unctad.org UNITED NATIONS PUBLICATION Copyright © United Nations, 2007 rights reserved UNCTAD/DITC/TED/2007/4 iii Contents Page Abstract.................................................................................................... iv . Introduction ...................................................................................... 1 II. Application ....................................................................................... 4 III. Document Structure .......................................................................... 4 IV. BioTrade Principles Criteria adopted UNCTAD BioTrade Initiative............................................................................ 5 1 Conservation biodiversity ................................................... 5 2 Sustainable biodiversity................................................ 6 3 Fair equitable sharing benefits derived biodiversity.............................................................................. 7 4 Socio-economic sustainability (productive, financial market management) ............................................................... 8 5 Compliance national international regulations ......... 10 6 Respect rights actors involved BioTrade activities .................................................................................. 11 7 Clarity land tenure, access natural resources knowledge ........................................................................ 12 iv UNCTAD BioTrade Principles Criteria Abstract BioTrade Principles Criteria defined UNCTAD BioTrade Initiative BioTrade national programmes, provide core conceptual framework underlying BioTrade Initiative' activities. line objectives principles Convention Biological Diversity, Commission Sustainable Development Millennium Development Goals; account relevance trade specific species ecosystems, supporting Convention International Trade Endangered Species Wild Fauna Flora, United Nations Convention Combat Desertification Ramsar Convention Wetlands. Principles Criteria applied contexts, driving BioTrade processes promote conservation biodiversity sustainable commercial . publication sets criteria BioTrade actors, wanting practices economically, socially environmentally sustainable, aspire. Keywords: BioTrade, biodiversity, sustainable , conservation, verification, benefit-sharing, native, trade, private sector. 1 UNCTAD BioTrade Principles Criteria . Introduction objective UNCTAD BioTrade Initiative (BTI) contribute conservation sustainable biodiversity promotion trade investment BioTrade products services line objectives principles Convention Biological Diversity (CBD). notion BioTrade centre conceptual framework guides action BTI, BioTrade regional national programmes, organizations produce commercialize products services derived biodiversity (fig. 1). framework term BioTrade understood include activities related collection production, transformation, commercialization goods services derived native biodiversity (genetic resources, species ecosystems) criteria environmental, social economic sustainability. complement definition BioTrade, BTI, BioTrade national programmes national international partners defined BioTrade Principles Criteria. Principles Criteria core conceptual framework supports BTI activities line objectives principles Convention Biological Diversity (CBD), Commission Sustainable Development (CSD) Millennium Development Goals (MDGs). relevance trade specific species ecosystems, supporting Convention International Trade Endangered Species Wild Fauna Flora (CITES), United Nations Convention Combat Desertification (UNCCD) Ramsar Convention Wetlands priority BTI. shown figure 1, mandates bodies organizations guided definition BioTrade Principles Criteria. addition, development Principles Criteria extensive consultations held partners stakeholders. process began 1999 formulation BioTrade national programmes. , Principles Criteria guided activities BioTrade Initiative, BioTrade national programmes related initiatives. early 2004, basis work BioTrade national programmes, regional version Principles Criteria adopted BTI national programmes. 2 complement approaches implicit Principles Criteria, BTI partners implementing Principles Criteria approaches: • -chain approach1: BTI BioTrade Facilitation Programme strengthening chains critical element facilitating good practices related sustainable conservation biodiversity promoting equitable sharing environmental, social economic benefits -chain participants. • Adaptive management approach2: context BioTrade, adaptive management contributes implementation sustainable practices, identification impacts species ecosystems continual improvement BioTrade initiatives. instance, BioTrade Facilitation Programme supporting elaboration management plans tool organizations, suppliers authorities implement Principles Criteria. • Ecosystem approach: ecosystem approach based holistic vision integrates ecological social issues, interactions processes involved productive system. practice, planning productive processes related BioTrade initiatives undertaken ecosystem approach. guarantees initiatives environmentally socially responsible regard impact species, habitats, ecosystems local communities. 1 ‘ chain’ refers coordinated relationships established actors involved indirectly productive activity aim moving product service supplier customer. involves alliances producers, processors, distributors, traders, regulatory support institutions, , departing market demand products services, establish joint vision identify mutual work jointly achievement goals, share risks benefits, invest time, energy, resources realizing goals. 2 ‘Adaptive management’ approach implementation corrective measures systems ongoing basis, based process continued monitoring. case management biological recourses, adaptive management monitoring impacts (environmental, social economic) eco-systems populations resulting biological resources. (Convention Biological Diversity, Addis Ababa Guidelines Principles Sustainable Biodiversity, 2004). 3 UNCTAD BioTrade Principles Criteria Finally, BioTrade Principles Criteria applied contexts, programme' impact assessment, guidance organizations, support chains, selection funds verification ( fig. 1). short, Principles Criteria drive BioTrade processes promote conservation biodiversity sustainable commercial . full set BioTrade Principles Criteria set . general version basis minimum criteria met; adapted specific applications. National programmes, , adaptations required national contexts. , Union Ethical BioTrade developed, global consultation process, specific verification framework measure compliance members natural ingredients industry BioTrade Principles Criteria. CBD Objectives Conservation Sustainable (Addis Ababa Principles) Equitable benefit-sharing CSD - MDG Sustainable development objectives MEAs CITES, UNCCD, RAMSAR. P1. Conservation P2. Sustainable P3. Equitable benefit-sharing P4. Socio-economic sustainability P5. Legal compliance P6. Respect actors’ rights P7. Clear land tenure resources access Adaptive management Ecosystem approach chain Mandate BioTrade Principles Approaches International national programmes networks chains & organizations Natural resources management Guidance organizations Support chains Financial support (funds) Impact assessment Verification Implementation Applications Figure 1. Context, implementation levels applications BioTrade Principles. 4 II. Application BioTrade Principles Criteria applied institutional level (.. national regional programme), level supply-chain actors (.. private company producer group). Institutional level Principles Criteria guide institutions’ BioTrade activities, BioTrade national programmes projects initiatives related promotion BioTrade. impacts generated institutions projects measurable framework, context implementing Principles Criteria. Supply-chain actor level level, Principles Criteria guide actors supply BioTrade products services good environmental social practices continually improved. context, Principles Criteria mandatory; , constitute basis organizations wanting embark path continual improvement. III. Document structure structure document general set Principles Criteria established BioTrade Initiative. , principles identified minimum obligations applicable organization BioTrade practices . , criteria assess compliance principle set . explanation application principle related criteria . restrict principles applied. BioTrade adaptive management approach activities, specific application Principles Criteria depends product question, actors involved interpretation Principles Criteria. , actors responsible implementing Principles Criteria decide application principle relevant product context. 5 UNCTAD BioTrade Principles Criteria IV. BioTrade Principles Criteria adopted UNCTAD BioTrade Initiative Principle 1 Conservation biodiversity objective Convention Biological Diversity; organizations3 maintain biological diversity scales (genes, specie, ecosystems). Criterion 1.1 Characteristics ecosystems natural habitats managed species maintained Organizations maintain ecological conditions ecosystem species exploited activities threaten species. Criterion 1.2 Genetic variability flora, fauna micro-organisms ( conservation) maintained Genetic variability vital element ensuring conservation biodiversity. important assure genetic variability protected managed risk losing variability. Criterion 1.3 Ecological processes maintained refers maintaining quality air, water soil, ecosystem functions biomes, management water sources local microclimates, intra- inter-specific interactions affect productivity species. Criterion 1.4 Activities developed management plans natural areas, coordination relevant authorities actors involved Coherence existing management conservation plans areas productive activities carried practices developed organization favour implementation plans. 3 term ‘organization’ document refer entities involved BioTrade activities production, transformation commercialization. 6 Principle 2 Sustainable biodiversity principle supports implementation objective Convention Biological Diversity. BioTrade productive activities aim assure sustainability resource ecosystem involved. aim ensure species ecosystem higher regenerative / productive capacity. Organizations define instruments application good management monitoring practices guide, design improve productive processes . Criterion 2.1 natural resources supported management documents, including extraction rates regeneration rates, monitoring systems productivity indexes Management documents essential identifying fundamental processes, defining activities ensure sustainable biological resources facilitating monitoring activities carried impact. necessarily imply management plan, document size complexity organization productive practices (collection, farming breeding captivity). Criterion 2.2 management agro-biodiversity include agricultural practices contribute conservation biological diversity Agricultural practices ensure maintenance basic conditions sustain agricultural production long term threatening biodiversity , time, create conditions favour regeneration natural ecosystems. Criterion 2.3 Technical standards initiatives environmental services met Environmental services, ecotourism, water regulation action reduce harmful effects climate change accordance technical standards defined field, accordance 7 UNCTAD BioTrade Principles Criteria existing national international standards (.. relating water resources climate change). Criterion 2.4 Information records experiences compiled contribute knowledge biodiversity Organizations projects contribute development transfer knowledge management systems tools, contribute knowledge validation dissemination. Principle 3 Fair equitable sharing benefits derived biodiversity principle responds fundamental facet conservation sustainable biodiversity Convention Biological Diversity, objective fair equitable sharing benefits arising genetic resources. Article 15 requires access distribution benefits related genetic resources based prior informed consent mutually agreed terms. BioTrade activities involve commercialization genetic resources, principle supports objectives requirements. Equitable benefit- sharing arises context objective Convention: sustainable biodiversity. Benefit-sharing important activities dealing biological resources, form vast majority BioTrade activities. context, , principle 3 requires suitable methodologies defined support actors involved implementation. reason, criteria identified based current experience. , definition based practical implementation methodological proposals. Criterion 3.1 organization interact involve actors chain, interaction organization actors involved production commercialization foster levels access information dialogue facilitate balanced negotiations. extremely important actors chain -informed production commercialization processes. actors assess contributions creating 8 solid footing negotiating adequate price equitable sharing monetary -monetary benefits. Criterion 3.2 Income generated levels chain, contributing position -added products market, transparent conditions precondition equitable sharing benefits generation earnings. , economic actors bio-businesses material benefits share. Criterion 3.3 Information knowledge target markets shared actors BioTrade organizations seek promote greater interaction , hand, local communities economic actors , , markets promote opportunities offer promoting maximum information accessing markets. Principle 4 Socio-economic sustainability (productive, financial market management) Competitiveness field BioTrade result sustainably managed products position specific markets remain long generate expected benefits. Criterion 4.1 Potential markets exist guarantee sustainability, BioTrade products market potential related existence specific markets products services. specific product service (market creation) terms trade tools, information, strategic partnerships advertising considered. Criterion 4.2 Financial profitability achievable BioTrade organization high potential long-term financial sustainability, 9 UNCTAD BioTrade Principles Criteria activities organizational system enterprise. Criterion 4.3 Employment generated quality life improved Local development added values BioTrade organization. perspective, generation employment improvement standard living local communities providing natural resources important. ways organizations support improvement provide tools enable communities enhance commercial practices add supply chain. Criterion 4.4 Negative impacts , inter alia, productive local cultural practices affect diversification food security prevented development commercial activities relation natural resources change customs producer dynamics local market. happen traditional production practices affected availability price basic products food security local populations. addition, important organizations recognize efforts communities responsible involved conservation sustainable management resources organization . result, benefits arising BioTrade activities shared reward community, protect conserve resource. Criterion 4.5 organization demonstrate organizational management capacity guarantee generation expected benefits implementation BioTrade Principles, organization organizational system place effectively coordinate activities, strategy shows high potential financial sustainability long term. 10 Principle 5 Compliance national international regulations Compliance relevant legislation regulations fundamental legal legitimacy organization efforts obtain market access products. levels implementation principle: () international level, conventions agreements , part, guides principles good practices. observed applied ; (ii) regional national levels, existing regulations complied . Criterion 5.1 organization aware comply national local legislation related sustainable trade products services derived biodiversity (wildlife management, labour regulations, .) national regulation, including labour regulations, applicable BioTrade projects strictly complied . Criterion 5.2 organization aware comply international regional legislation related sustainable trade products services derived biodiversity includes, limited , Convention Biological Diversity, Convention International Trade Endangered Species Wild Fauna Flora, conventions International Labour Organization, rules World Trade Organization Andean Community, regulations. 11 UNCTAD BioTrade Principles Criteria Principle 6 Respect rights actors involved BioTrade activities generation social capital pillars sustainable development. reason, respect rights actors interact organization fundamental. Criterion 6.1 Human rights gender issues respected Human rights fundamental work involved sustainable trade biodiversity products. duly recognized respected. Criterion 6.2 Intellectual property rights respected Intellectual property rights, traditional knowledge obtaining innovations creations protected rights, duly respected. traditional knowledge relevant development commercialization product, organizations acknowledge relevance joint ownership intellectual property rights / sharing royalties licensing. Adequate discussion intellectual property policy actors important regard. Criterion 6.3 Rights local indigenous communities (territory, culture, knowledge) respected Local communities indigenous peoples part essential actors commercialization biodiversity-based products, conservation sustainable biodiversity. guarantee sustainable trade, impacts productive system groups people identified rights respected. Criterion 6.4 Traditional knowledge maintained revived Traditional knowledge related conservation sustainable biological resources important component BioTrade activities. direct contribution traditional knowledge 12 chain, BioTrade organizations frame activities undermine traditional practices, contribute appreciation conservation. Criterion 6.5 organization offer labour security proper work conditions standardized labour regulations, BioTrade organization comply practices guarantee job security offer adequate working conditions employees. Principle 7 Clarity land tenure, access natural resources knowledge Clarity rights access important element responsible management organization. long-term investments management measures implemented ensure sustainability. time, clarity issue means responsibilities actor management species established. Criterion 7.1 organization demonstrate land tenure relevant regulations organization demonstrate land resources addition compliance Principle 7 accordance Principle 6. organization encroach existing rights local communities. cases conflicts land − traditional rights contradict legal rights − organization mechanisms place resolve conflicts satisfactory parties. Criterion 7.2 Access biological genetic resources sustainable subject prior informed consent Convention Biological Diversity requires access distribution benefits relation genetic resources 13 UNCTAD BioTrade Principles Criteria place basis prior informed consent. cases, consent relevant national authorities provider country obtained. cases regulated national legislation, line Convention Biological Diversity. Criterion 7.3 Access traditional knowledge granted prior informed consent granted traditional knowledge , organization follow regulations established procedures ensure rights actors providing knowledge recognized, including prior informed consent relevant stakeholders, indigenous local communities, circumstances subject domestic law. Traditional knowledge considered resource , , valued rewarded manner. Printed United Nations, Geneva GE. − July 2007 UNCTAD/DITC/TED/2007/4