Rubber Trust Fund
Halcyon Agri Corp Ltd – WWF-US (Global)
The rubber supply chain is broken: Global demand for natural rubber is constantly rising to support the world’s increasing mobility and medical needs, yet most of the 6 million farmers who produce 85% of the world’s rubber live in poverty. Market fluctuations in price often result in negative impacts on farmers and the environment. At low prices, farmers struggle to break even. At high prices, valuable natural ecosystems are at risk of conversion as farmers switch to more lucrative crops. How do we drive sustainability in the rubber supply chain so that carbon stocks and biodiversity are protected while small farmers improve their livelihoods.
With support from Conservation Finance Alliance (CFA) experts, WWF and Halcyon Agri will design a Rubber Trust Fund (RTF) that seeks to offer transparent, trustworthy, and efficient financial solutions to: (1) farmers seeking to improve their productivity and livelihoods sustainably; and (2) rubber supply chain actors developing and implementing tools to make rubber more sustainable.
This project will develop a model for a first-of-its-kind financial mechanism for a global commodity. The project team will engage the multi-stakeholder Global Platform for Sustainable Natural Rubber (GPSNR) to leverage GPSNR’s technical and financial reach throughout rubber’s production, processing, and trade. 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- and multi-lateral developmental aid with mandatory or voluntary sustainability premiums collected through an innovative, GPSNR-endorsed rubber e-trade platform.
Links:
WWF-US https://www.worldwildlife.org/projects/transforming-the-global-rubber-market
Halcyon Agri https://www.halcyonagri.com/