In an ambitious project to transform the global rubber market, experts from the Conservation Finance Alliance (CFA), the Word Wildlife Organisation (WWF), and Halcyon Agri Corp. Ltd. (Halcyon Agri), among others, will design a Rubber Trust Fund (RTF) to offer transparent, trustworthy, and efficient financial solutions to rubber farmers, who seek to improve their productivity and livelihoods sustainably; and rubber supply chain actors, by developing and implementing tools to make the rubber chain more sustainable.
Global demand for natural rubber (NR) is constantly rising yet a majority of the 6 million farmers who produce 85% of the world’s rubber live in poverty – unexpected fluctuations in market price often result in negative impacts on farmers and the natural environment.
However, according to WWF, rubber can be produced responsibly for its various industries without compromising on the livelihood of farmers or harming the valuable ecosystem. WWF, along with several major tyre companies, non-profit organisations, rubber traders and processors, has since introduced the Global Platform for Sustainable Natural Rubber (GPSNR) to increase supply and uptake of sustainable NR in the global marketplace.
The new RTF project is expected to engage the multi-stakeholder GPSNR to leverage its technical and financial reach throughout the rubber supply chain through a unique financial mechanism. The mechanism will be designed to engage the entire sector in addressing supply chain risks and impacts with investments that may include the matching of bi-/multi-lateral developmental aid with mandatory or voluntary sustainability premiums collected through an innovative, GPSNR-endorsed rubber e-trade platform.
Hopefully, the RTF project will improve upon GPSNR’s implementation, monitoring and verification of sustainable NR commitments from its various members so that carbon stocks and the valuable biodiversity are protected while small farmers can better their livelihoods.