Equitable sharing of deep-sea mining benefits: More questions than answers
Daniel Wilde, Hannah Lily, Neil Craik, Anindita Chakraborty
Abstract
The International Seabed Authority is tasked to develop rules for “equitable sharing of financial and other economic benefits” from deep-sea mining activities in the seabed area beyond national jurisdiction. Without this element of the legal regime, the ISA cannot meet its stated aim of ensuring deep-sea mining activities are undertaken for the ‘benefit of [hu]mankind as a whole’, with particular consideration to the interests and needs of developing States. This paper examines proposals made at the ISA to date. It demonstrates, using modelled revenue estimates, that the direct distribution of funds would lead to States receiving economically insignificant benefits. It also examines formulae for dividing benefits between member States, noting a degree of arbitrariness in current proposals. The authors note the merit of an alternative proposal for pooling mining revenue into a ‘Seabed Sustainability Fund’, but question whether, as is currently proposed, the fund should be narrowly focused on deep-sea mining related activities, including activities that should be funded by miners, and/or before mining commences. In addition, aspects of the fund’s proposed governance are examined critically against international best practice. The paper finally raises the importance of the decision-making process for equitable benefit-sharing arrangements meeting the highest standards of process legitimacy, including transparency and consultation. The paper notes that these are decisions about the common heritage of [hu]mankind, which include value questions on which there may be diverse positions, and that set a precedent for other global common resources in the future.