By Jake Spring and Oliver Griffin
CALI, Colombia (Reuters) -Countries at the U.N. COP16 nature talks in Colombia on Saturday agreed to how companies in sectors such as pharmaceuticals and cosmetics should pay for the use of genetic information drawn from biodiversity in their research and development.
Nearly 200 countries convened in the Colombian city of Cali aiming to implement the 2022 Kunming-Montreal Global Biodiversity Framework agreement, which aims to halt the rapid decline of nature by 2030.
The payments could generate billions of dollars for nature conservation that would be directed to a fund that would distribute half of the proceeds to Indigenous peoples and local communities.
Genetic data from nature is used in a wide range of products from nutrient-enriched rice to stone washed denim jeans distressed using enzymes derived from microbes.
The deal comes after countries at COP16 agreed late on Friday to create a permanent body for Indigenous and local communities to officially consult on U.N. nature decisions, as well as recognizing the role of Afro-descendant communities in conservation.
The deal on payment for genetic information looked set to flounder amid disagreements between countries, chiefly India and Switzerland, that saw the negotiations go through the night and past dawn before the measure was adopted.
Industries that will be expected to pay up for use of genetic material include pharmaceuticals, cosmetics and biotechnology, among other sectors.
"Businesses are committed to supporting biodiversity goals and have been engaging throughout the process," said Daphne Yong-D’Herve, an expert on the use of genetic information with the International Chamber of Commerce.
The fund, to be known as the Cali fund after the COP16 host city, will be financed with payments from qualifying companies who will be expected to contribute 0.1% of their revenue or 1% of their profits, according to the text adopted by the summit.
"The clear signal sent by COP16 today is that large corporations must pay back their dues for nature protection," said Glenn Walker, head of the nature program at Greenpeace Australia Pacific.