Approaches for Sharing Benefits from Deep Sea Mining Operations in the Area

What is it about?

This paper critically examines the benefit-sharing regime concerning DSM operations in the Area, and the proposed distribution modalities for benefit-sharing. UNCLOS contains few and vague rules concerning benefit-sharing from activities in the Area. The only obligation is that benefit-sharing should be ‘equitable’ and the interests of developing states must be considered. To determine what may constitute ‘equitable’ sharing, the paper examines the practice of other legal regimes within LOS framework. The paper supports the conclusion that, in the context of DSM in the Area, ‘equitable’ sharing is proportional division based on contribution or claim, while ensuring that all relevant actors have some access to the benefits. Based on these findings, the paper critically analyzes proposed distribution mechanisms. The analysis shows that the underlined rationale of these mechanisms conflicts with the current practice and definition of ‘equitable’ in other legal regimes within the LOS framework and thus would be difficult to implement. The paper offers a unique perspective by trying to identify the content and scope of the vague ‘equitable’ criterion for sharing or distributing benefits, rather than referring to it as a general goal or principle. Doing so, the paper offers a practical account for the feasibility of different distribution modalities, which may yield new insights for institutional design to better deal with challenges in this well-researched but still unclear issue.

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