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Business.2010 newsletter : Believing in business and biodiversity.

A Union for biotrade

Biodiversity is increasingly making the headlines. As the wider public gains awareness of the value of biodiversity, the issue is gradually becoming the object of consumer interest. Some predict a future mega-trend towards ‘biodiversity-sensitive’ business and forward-looking companies are getting prepared. Launched by the United Nations Conference on Trade and Development (UNCTAD) in 1996, the BioTrade Initiative works to promote trade and investment in biodiversity-sensitive products in line with the CBD objectives -- ‘biotrade’ thus refers to those activities of collection, production, transformation, and commercialisation of goods and services derived from native biodiversity under the criteria of environmental, social and economic sustainability.

The pivotal role of small business
The BioTrade Initiative works alongside governments and businesses, providing support and guidance on implementing BioTrade Principles and Criteria which are inspired by the Convention As a platform for dialogue among stakeholders and decision-makers, the Initiative helps identify business needs and facilitates the emergence of viable solutions. It provides technical assistance to businesses to improve the quality of their products in the supply chain by developing company-specific management plans for species, facilitates communication along the links of the chain, and brings company representatives to international events and trade fairs. At COP-8, the Initiative organised a number of events for small and medium-sized enterprises (SMEs) aimed at highlighting the pivotal role of the private sector in achieving the CBD objectives and the challenges faced in engaging businesses in responsible biodiversity practices. Discussions around the 2010 Biodiversity Target, for instance, led representatives from the Peruvian Institute of Natural Products (IPPN) and Brazilian company Natura Cosmeticos SA to call on Parties to (i) support the integration of biodiversity into existing ethical certification processes; (ii) strengthen the role of trade promotion initiatives in support of biotrade; (iii) finance much-needed biodiversity product development; and (iv) build greater consumer awareness of biodiversity-benefiting businesses. By making trade work for biodiversity, bio-entrepreneurs can become key actors in conservation and poverty alleviation. Decision VIII/17 was, in this regard, very opportune. In Curitiba, UNCTAD also organised a roundtable on biodiversity and SMEs. PhytoTrade Africa’s Gus Le Breton emphasised that biotrade makes a difference “by creating opportunities based on local, indigenous, species which survive during years of drought and by creating markets and creating commercially valuable products”. Aurandina SAC’s Alfredo Menacho stressed that whilst biotrade businesses are financially self-sufficient, there is also an urgent need for market differentiation.

Towards market differentiation
Issues such as consumer awareness, market differentiation and the verification of the sustainable use of biodiversity came up time and again during the discussions. The need for market recognition for private sector efforts towards compliance with BioTrade Principles and Criteria and the CBD was reaffirmed in later discussions. At a May 2006 roundtable organised by UNCTAD at the Vitafoods International Trade Fair in Geneva, importers and exporters exchanged views on the potential of biodiversity for business development and the opportunities it offers to generate income for remote, rural communities. These benefits, however, depend on businesses receiving the necessary guidance to ensure efforts are resulting in conservation and sustainable use of biodiversity, and in the markets acknowledging these efforts. The idea of a Union for Ethical BioTrade as a way to improve international recognition, as well as to provide a range of services to companies involved in biotrade activities, was born at this roundtable and developed in further meetings. For like-minded companies seeking to comply with BioTrade Principles and Criteria, membership would validate and support their progress towards such compliance. Their products and services could thus be verified and effectively differentiated by consumers and other companies. Membership would imply gradual adherence to the Principles and Criteria and a move towards the verification of products and practices. The Union would also allow consolidating already existing characteristics of BioTrade companies, such as working with new and exotic natural ingredients of consistent and superior quality. Since the inception of the idea, important steps have already been taken to develop the Union. A Private-Sector Steering Group has been created to provide input into strategic decisions during the formulation phase. This Steering Group will be facilitated by the BioTrade Initiative with contributions from other relevant stakeholders, such as BioTrade National Programmes, governmental and non-governmental organisations, and labelling institutions. The next few months will see the creation of the Union as an independent, non-profit organisation. We invite interested business to join us.

Lucas Assunção is Chief, Climate Change and Biodiversity Section and Coordinator, BioTrade Initiative Contact Biotrade.org
(1) See http://www.biotrade.org/Intro/Principles/bti-principles.htm for more information.