India's Access and Benefit Sharing (ABS) Framework Mobilizes ₹266 Crore Under the Biological Diversity Act, 2002

India has made significant progress in conserving its rich biodiversity while ensuring that local communities benefit from the use of biological resources. A major milestone in this journey is the Access and Benefit Sharing (ABS) Framework, implemented under the Biological Diversity Act, 2002. Since its implementation, the framework has mobilized more than ₹266 crore, with nearly ₹145 crore distributed to local communities, farmers, biodiversity custodians, and traditional knowledge holders.

The ABS Framework reflects India's commitment to balancing environmental conservation with inclusive economic development by ensuring that those who protect biodiversity receive a fair share of the benefits generated from its use.

Why is the ABS Framework in the News?

The Government of India recently announced that the National Biodiversity Authority (NBA) has collected more than ₹266 crore through the Access and Benefit Sharing (ABS) mechanism since 2008. A significant portion of this amount has already been distributed to beneficiaries, strengthening biodiversity conservation while supporting sustainable livelihoods across the country.

Key Highlights of India's ABS Framework

The latest government data highlights the growing success of the ABS mechanism:

• More than ₹266 crore has been mobilized through the ABS mechanism since 2008.
• During FY 2025–26, the framework generated ₹21.26 crore.
• Nearly ₹145 crore has been distributed among eligible beneficiaries.
• Around ₹78 crore was disbursed during FY 2025–26 alone.
• More than 10,500 Biodiversity Management Committees (BMCs) have benefited from the scheme.
• Beneficiaries are spread across 23 States and 4 Union Territories.
• Over 230 farmers, six State Forest Departments, and several research institutions have received support.
• ABS funds have also financed six Red Sanders research projects.

Sector-wise Contribution to ABS Collections

Some sectors have contributed significantly to India's ABS collections.

Together, these three sectors account for approximately 91% of the total ABS collections.

Biological Diversity Rules, 2024: Benefit Distribution Mechanism

According to the Biological Diversity Rules, 2024, the National Biodiversity Authority (NBA) transfers 85–90% of the Access and Benefit Sharing amount to the State Biodiversity Boards (SBBs). These Boards are responsible for distributing the benefits among eligible local communities and biodiversity custodians in a transparent and equitable manner.

What is Access and Benefit Sharing (ABS)?

Access and Benefit Sharing (ABS) is a legal mechanism that ensures the fair and equitable sharing of benefits arising from the use of biological resources and associated traditional knowledge. The framework recognizes that indigenous communities, farmers, and local biodiversity custodians have preserved biological resources for generations. Therefore, when companies, researchers, or organizations utilize these resources for commercial or research purposes, a portion of the benefits must be shared with the rightful stakeholders.

Types of Benefits Under the ABS Framework

The benefits under the ABS mechanism are broadly classified into two categories.

Monetary Benefits

• Royalties
• Access fees
• Compensation
• Revenue sharing
• Benefit-sharing payments

Non-Monetary Benefits

• Technology transfer
• Capacity building
• Joint scientific research
• Knowledge sharing
• Intellectual Property Rights (IPR) collaboration

Objectives of the ABS Framework

The Access and Benefit Sharing mechanism aims to:

• Conserve India's biodiversity.
• Promote the sustainable use of biological resources.
• Improve the livelihoods of local communities.
• Recognize and protect traditional knowledge systems.
• Ensure equitable sharing of economic benefits.
• Encourage responsible and ethical utilization of biological resources.

The framework operates on two internationally recognized principles:

• Prior Informed Consent (PIC) – Biological resources can be accessed only after obtaining prior approval from the concerned community or authority.
• Mutually Agreed Terms (MAT) – Benefit-sharing arrangements must be based on mutually accepted conditions between all stakeholders.

Biological Diversity Act, 2002

The Biological Diversity Act, 2002 was enacted to fulfill India's commitments under the Convention on Biological Diversity (CBD), 1992. The Act provides a legal framework for conserving biodiversity while ensuring that biological resources are utilized sustainably and that the resulting benefits are shared fairly.

What Does the Biological Diversity Act Regulate?

The Act regulates:

• Access to biological resources.
• Use of associated traditional knowledge.
• Transfer of research results.
• Intellectual Property Rights (IPRs) based on biological resources.
• Fair and equitable sharing of benefits arising from resource utilization.

Objectives of the Biological Diversity Act, 2002

The Act is based on three fundamental objectives:

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

Biodiversity Funds Established Under the Act

To support biodiversity conservation and benefit-sharing, the Act provides for the establishment of:

• National Biodiversity Fund
• State Biodiversity Funds
• Local Biodiversity Funds

These funds are used to finance biodiversity conservation, research, community development, and benefit-sharing initiatives across India.

Why is the ABS Framework Important?

The Access and Benefit Sharing Framework is more than an environmental policy—it is a model of sustainable development. By rewarding communities that protect biodiversity, India is encouraging conservation while creating livelihood opportunities for rural populations. It also ensures that industries using biological resources contribute fairly to environmental protection and community welfare.

Competitive Exam Quick Facts

Conclusion

India's Access and Benefit Sharing (ABS) Framework is a landmark initiative that connects biodiversity conservation with social and economic justice. By ensuring that local communities receive a fair share of the benefits derived from biological resources, the framework promotes sustainable development while protecting India's rich ecological heritage.

For aspirants preparing for UPSC, State PCS, SSC, Banking, Railways, Defence, CUET, UGC NET, and other competitive examinations, topics such as the Biological Diversity Act, 2002, Access and Benefit Sharing (ABS), National Biodiversity Authority (NBA), Biological Diversity Rules, 2024, PIC, and MAT are highly important from both current affairs and environment sections.