SOP

Share of Proceeds: In the context of the Convention on Biological Diversity (CBD) and its financial mechanism, the “Share of the Proceeds” refers to a mechanism for providing financial support to developing countries. Here’s how it generally works: 1. **Access and Benefit-sharing (ABS) Obligations**: Countries that are parties to the CBD have commitments related to the fair and equitable sharing of benefits arising from the utilization of genetic resources. 2. **Utilization of Genetic Resources**: When genetic resources from a country party to the CBD are utilized (e.g., for commercial purposes like developing a new drug), a share of the benefits derived from this utilization is supposed to be returned to that country. 3. **Share of the Proceeds Mechanism**: The Share of the Proceeds mechanism is a way to operationalize this commitment. It involves setting up a fund or other financial mechanism where a portion of the benefits generated by the utilization of genetic resources is deposited. This fund is then used to provide financial support to the country of origin or providers of the genetic resources. The specific details of how this mechanism is implemented can vary and are often subject to negotiations and agreements among the parties to the CBD.