Biological Diversity Act, 2002

The Biological Diversity Act, 2002 is a comprehensive piece of legislation enacted by the Government of India to conserve the country’s vast biological resources, ensure their sustainable use, and guarantee the equitable sharing of benefits arising from their utilisation. The Act aligns India’s national framework with the principles of the Convention on Biological Diversity (CBD), which India ratified in 1994, and seeks to protect both biological resources and associated traditional knowledge from exploitation and biopiracy.

Background and Need for the Act

India is one of the megadiverse countries of the world, hosting nearly 7–8% of global species and a wide range of ecosystems, from the Himalayas to coastal mangroves. The rich biological diversity of the country has long been intertwined with its traditional knowledge systems, which sustain millions of rural and tribal communities.
However, with the increasing commercial use of biological materials in pharmaceuticals, agriculture, and biotechnology, concerns arose about the unsustainable exploitation of biodiversity and biopiracy—the unauthorised use of biological resources and indigenous knowledge by corporations without fair compensation.
The international context also played a decisive role. The Convention on Biological Diversity (1992), signed at the Rio Earth Summit, established three main objectives:

1. Conservation of biological diversity.
2. Sustainable use of its components.
3. Fair and equitable sharing of benefits arising from the use of genetic resources.

As a signatory to the CBD, India was obligated to enact domestic legislation to meet these objectives. The Biological Diversity Act, 2002, along with the Biological Diversity Rules, 2004, was formulated to translate these commitments into national law.

Objectives of the Act

The Act pursues a threefold aim:

• Conservation of biological diversity across species, ecosystems, and genetic levels.
• Sustainable utilisation of biological resources for scientific, agricultural, and industrial purposes without depleting them.
• Equitable sharing of benefits arising from the commercial use of biological resources and associated knowledge with the local communities who have preserved them.

Scope and Coverage

The Act covers the whole of India, including its territorial waters and Exclusive Economic Zone (EEZ). It applies to:

• All biological resources, defined broadly to include plants, animals, microorganisms, or parts thereof with actual or potential use.
• Traditional knowledge associated with biological resources.
• Research, commercial, and industrial activities involving biological materials.

The Act, however, excludes human genetic material from its purview.

Institutional Framework

The Biological Diversity Act, 2002, established a three-tier institutional structure to implement its objectives:

1. National Biodiversity Authority (NBA):
   • Headquartered in Chennai, the NBA was constituted in 2003 under the Ministry of Environment, Forest and Climate Change (MoEFCC).
   • It regulates access to biological resources by foreign individuals, companies, and organisations, ensuring benefit sharing.
   • It advises the Central Government on biodiversity conservation and sustainable use.
   • It can oppose intellectual property rights (IPR) claims abroad that involve India’s biological resources obtained without prior approval.
2. State Biodiversity Boards (SBBs):
   • Established by individual State Governments.
   • They regulate the use of biological resources by Indian citizens and companies for commercial purposes within their jurisdiction.
   • They advise state authorities on conservation and equitable use.
3. Biodiversity Management Committees (BMCs):
   • Formed at the local body level (panchayats, municipalities).
   • BMCs are responsible for preparing People’s Biodiversity Registers (PBRs), which document local biodiversity, traditional knowledge, and conservation practices.
   • They play a vital role in ensuring community participation and local-level conservation.

This decentralised structure reflects India’s commitment to community-based biodiversity management, integrating national policy with local governance.

Key Provisions

The Biological Diversity Act incorporates several important provisions to regulate access and ensure benefit-sharing:

• Access to Biological Resources: Foreign nationals, companies, or non-resident Indians (NRIs) must obtain prior approval from the National Biodiversity Authority before accessing biological materials or associated knowledge for research, commercial use, or intellectual property applications.
• Intellectual Property Rights (IPR): No person or organisation can apply for IPRs (patents or plant varieties) based on Indian biological resources or knowledge without prior consent from the NBA.
• Benefit-Sharing Mechanism: Users of biological resources must share benefits with local communities and conservation authorities. Benefit-sharing may take the form of:
  • Monetary compensation.
  • Technology transfer.
  • Joint ownership of IPR.
  • Support for conservation initiatives.
• National Biodiversity Fund: Established under the Act to channel benefit-sharing revenues towards the conservation of biodiversity and the socio-economic development of local communities.
• Conservation and Sustainable Use: The Act empowers governments to identify and notify Biodiversity Heritage Sites, promoting in situ conservation and protection of unique ecosystems.
• Prohibition of Biopiracy: The Act criminalises unauthorised access and use of biological materials, prescribing penalties such as fines and imprisonment.

Notable Cases and Implementation Examples

The Act has played a crucial role in preventing biopiracy and protecting traditional knowledge:

• Neem Patent Case (Neem Tree Extracts): Although preceding the Act, this case exemplified India’s concern about biopiracy. A European patent on neem-based pesticides was revoked after evidence of traditional Indian use was presented.
• Turmeric and Basmati Cases: The attempt to patent the wound-healing properties of turmeric and basmati rice varieties by foreign firms triggered the creation of a legal framework to protect traditional knowledge.
• Kani Tribe Case (Jeevani Drug): The benefit-sharing model applied in the case of the Kani tribe in Kerala, whose knowledge led to the development of the herbal drug “Jeevani,” became a precedent for equitable benefit distribution.

These examples reinforced the importance of the Act in protecting indigenous communities and their traditional ecological knowledge.

2021 Amendment Bill

In 2021, the Government of India introduced the Biological Diversity (Amendment) Bill to streamline procedures and encourage greater participation of the private sector and traditional medicine practitioners. Key proposals included:

• Simplifying regulatory approvals for AYUSH practitioners and Indian researchers.
• Promoting foreign investment in biodiversity-based industries.
• Introducing decriminalisation of minor offences under the Act.

However, the Bill faced criticism from environmentalists who feared it might weaken conservation safeguards and lead to commercial exploitation of biological resources. The debate continues regarding the balance between economic use and ecological protection.

Significance of the Act

The Biological Diversity Act, 2002, holds immense ecological, economic, and ethical significance:

• Conservation Framework: Provides a legal foundation for biodiversity protection and sustainable use across India’s varied ecosystems.
• Empowerment of Local Communities: Recognises the role of indigenous and local communities in conserving and utilising biological resources.
• Equitable Benefit Sharing: Ensures that profits from bio-resources and associated knowledge are fairly distributed.
• Intellectual Property Safeguard: Protects India from biopiracy and unauthorised patenting of native biological materials.
• Compliance with Global Obligations: Aligns national policy with the CBD and the Nagoya Protocol on Access and Benefit-Sharing (2010).

Challenges in Implementation

Despite its strong legal framework, the Act faces several challenges:

• Limited Awareness: Many local communities and industries remain unaware of the Act’s provisions.
• Weak Institutional Capacity: BMCs and SBBs often lack technical expertise and funding.
• Poor Documentation: Many biodiversity records and People’s Biodiversity Registers remain incomplete.
• Enforcement Difficulties: Monitoring access and benefit-sharing at local and international levels remains complex.