Does it matter how high information costs are for treaty design? A closer look at the BBNJ agreement

International environmental agreements governing natural resource use can either reduce or increase transaction costs for Parties. This paper contends that information costs, which constitute a form of transaction costs, played a key role in the institutional design choices of the Agreement on the Conservation and Sustainable Use of Marine Biological Diversity in Areas Beyond National Jurisdiction (“BBNJ Agreement”), adopted on 19 June 2023. Applying transaction cost theory, the paper examines how information costs influenced Part II of the BBNJ Agreement and the obligations relating to activities with respect to marine genetic resources and digital sequence information. The research takes a historical approach, analysing two periods: the period preceding the adoption of the BBNJ Agreement, the negotiation and drafting stage. The findings indicate that information costs significantly contributed to the development of core institutional designs under the BBNJ Agreement, especially the notification and benefit-sharing systems, to reduce transaction costs for providers and potential users of marine genetic resources and digital sequence information.