Why in the News?
The Lok Sabha recently passed the Biological Diversity (Amendment) Bill, 2021, aimed at modifying the provisions of the Biological Diversity Act, 2002.

About Biological Diversity Act, 2002:
The act was enacted in 2002, it aims at the conservation of biological resources, managing its sustainable use and enabling fair and equitable sharing benefits arising out of the use and knowledge of biological resources with the local communities.
Regulatory Structure: The act envisaged a three-tier structure to regulate the access to biological resources:

• The National Biodiversity Authority (NBA) at the national level.
• State Biodiversity Boards(SBB) at the state level.
• Biodiversity Management Committees at the local body level.
• Under the Biological Diversity Act of 2002, provisions are made to share benefits with biodiversity conservers, holders, and creators of associated knowledge. These benefits encompass monetary compensation, sharing of Intellectual Property Rights (IPRs), and technology transfer.

Amendments Made in Biodiversity Bill 2021:

• Regarding Access to biological resources and associated knowledge, It amends the classification of entities, list of activities requiring intimation, and adds exemptions.
• Approval for Intellectual Property Rights (IPR) will be required before the grant of IPR instead of before the application itself.
• SBB will determine benefit sharing while granting approvals to domestic entities as per the regulations by NBA.
• The Bill decriminalises the offences and makes offences punishable with a penalty between one lakh rupees and Rs 50 lakh.

Significance of the Biological Diversity (Amendment) Bill 2021:
The Bill seeks to amend the 2002 Act to:

• Simplify compliance requirements for domestic companies.
• Encourage the Indian system of medicine and cultivation of wild medicinal plants,
• Facilitate fast-tracking of processes for research, patent application, and transfer of research results,
• Decriminalise offences, and
• Encourage foreign investment in the sector.