Empowering Smallholder Farmers: The Path to Deforestation-Free Rubber Supply Chains to Meet the EUDR

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On Wednesday, 19 April 2023, the European Union approved the upcoming Deforestation-Free Regulation (EUDR) to prevent companies from placing products linked to deforestation onto the EU market. As part of the wider vision of the EU Green Deal, it will demand companies who import rubber or rubber-based products (e.g., tires) to verify that their supply chain is deforestation-free. It’s a push towards an era of environmental accountability, yet it also sparks debates about the path forward for the rubber industry.

The EUDR requires companies to have traceability to the farm level, including geo-location data and proof of land legality. According to the regulation, every plot below 4 hectares requires at least a GPS point coordinate, while plots above 4 hectares must have a polygon.

Fulfilling these traceability requirements is no small feat. There is concern from the industry that smallholder farmers may be unintentionally excluded from global sustainable supply chains. Ensuring smallholder farmer inclusion requires a holistic sustainability approach.  There is no doubt that the rubber industry has begun moving towards sustainable rubber sourcing through combined industry efforts like the Global Platform for Sustainable Natural Rubber (GPSNR). However, the reality is that most imported rubber to the EU currently does not meet the regulatory requirements as the industry lacks traceability to the farm level. As 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers, the implications of this regulation could be far-reaching and severe, particularly for these smallholder farmers.

However, there is a lot of hope.

Firstly, even though it might seem challenging, traceability to the farm level is doable – even for the rubber industry. This has been demonstrated in a GPSNR-funded farmer training and coaching project primarily focused on supporting smallholders to apply Good Agriculture Practices (GAP). Koltiva, the company I am working for and who was selected to be the implementing partner for this project, has mapped more than 4,000 farmers and their farms to help them to prepare for the EUDR in less than a year.

Secondly, we believe that traceability to the farm is scalable. In our work with clients in 51 countries, we were able to map almost 1 million smallholder farmers through our KoltiTrace platform. Platforms such as KoltiTrace allow companies to map and verify their supply chain, including transaction traceability from Seed to Tire and deforestation-free analysis.

Finally, EUDR could have a long-term positive impact on smallholder farmers. Currently, many rubber farmers do not have proper land titles. Due to the EUDR geolocation requirements, many smallholders will, for the first time, have access to a map of their own plantation, allowing them to legalize their land.

And it doesn’t stop there. Smallholders have largely been invisible in global supply chains. Traditional development programs have tried to engage them, but they have not reached the expected results. Many smallholders still have no access to knowledge, no access to capital,  and soon will also be excluded from the carbon economy.

I believe that it’s possible to bridge these gaps. Traceability to farm level and digitalizing the first mile of agricultural value chains can lay the foundation for holistic sustainability interventions. Enabled by technology and data, the sector can equip farmers with critical knowledge, improve their access to finance, actively support farmers to apply low-carbon practices and enable them to reap the benefits of the growing carbon economy.

While traceability cannot be achieved overnight, the rubber industry is in a unique position. At GPSNR, the major industry players are sitting at one table. Through combined efforts and data-sharing agreements of shared supplier data, the rubber industry can become a leading example of how to meet the EUDR.


About the Author:
Luca Fischer is Koltiva’s Program Manager, leading Koltiva’s boots-on-the-ground implementation projects in the rubber sector globally. He bridges the gap between the client, product, and field teams.

Luca has over five years of work experience in sustainable sourcing, smallholder livelihood, and climate-smart agriculture development. He graduated with an M.Sc. in Sustainable Resource Management from the Technical University of Munich, Germany.

About Koltiva (click here for more information)
Established in 2013, Koltiva is a leading agritech company for enterprises to make their global supply chains traceable, inclusive, and climate-smart. Backed by Koltiva’s human-centered technology with boots-on-the-ground professional service, Koltiva supports some of the largest multinational companies by digitizing and verifying global supply chains, focusing on enhancing traceability, inclusiveness, and sustainability. Koltiva combines triple-tech (AgriTech, FinTech, and ClimaTech) to improve producers’ outcomes and profitability while building more sustainable supply chains.

More To Explore

News

Implementation Guidance/Reporting Requirements Stakeholder Category Focus Groups

Through a process led by the Policy Toolbox and Implementation Guidance Working Group (WG1), the General Assembly approved a Policy Framework in September 2020. The Framework outlines specific commitments to sustainable natural rubber that GPSNR company members must include in their public policies or other relevant documents.

The next step is for GPSNR to develop the Implementation Guidance and Reporting Requirements as they pertain to the specific commitments laid out in the GPSNR Policy Framework.  WG1 is engaging consultant(s) to develop the Implementation Guidance and Reporting Requirements. As the Implementation Guidance and Reporting Requirements will vary depending on where a member company sits within the natural rubber supply chain, input will be needed to develop these documents for the following stakeholder categories:  natural rubber producers/processors and traders, tire makers and other natural rubber product manufacturers, and auto makers and other end users.

GPSNR is creating focus groups for each of the three stakeholder categories to enable broader participation of members from each stakeholder group.  Members from other stakeholder groups are also encouraged to join the focus groups to help ensure a balanced dialogue.

Focus groups will work closely with the consultant(s) to ensure that the Implementation Guidance and Reporting Requirements are relevant to the respective stakeholder categories. Once these documents are finalized, they will be voted on at the next General Assembly.

GPSNR is now looking for volunteers to join the stakeholder category focus groups that will be consulted during the development of GPSNR’s Implementation Guidance. There are no limits to how many category members can join the focus groups. Members are encouraged to join at least one focus group.

The entire process is expected to conclude by June 2021.

News

Secretariat Update – November 2019

About BCSD Singapore Ltd

Since its inception, GPSNR was in the need of a host and BCSD Singapore Ltd. was chosen because its mission is very much aligned with that of GPSNR. From October 2018, BCSD Singapore Ltd. acted as the legal entity under which GPSNR operations were conducted. This role was formalised with the approval of GPSNR’s Statutes in March 2019. The services provided to GPSRN were about all administrative aspects of the platform which include but not limited to invoicing, accounting, procurement, and HR services. 

About WBCSD Asia Pacific Ltd

WBCSD Asia Pacific Ltd. has been established as a non-profit legal entity in Singapore in January 2019. This entity is an affiliate of WBCSD and its purpose is to support more effectively global WBCSD Members and projects in the region. With a regional office in Singapore, WBCSD is in a better position to understand regional and national specificities, business priorities and practices, political and regulatory landscape and learn from cultural diversity and perspectives of local communities.

What will change ? 

  • This transition will not result in any changes of the day to day activities of GPSNR. 
  • The organizational and governance structure of the platform remains the same as decided in the last General Assembly.  
  • Future incoming and recurring GPSNR membership would be invoiced through WBCSD Asia Pacific Ltd (instead of BCSD Singapore Ltd) as of 1st December, 2019.
  • WBCSD Asia Pacific Ltd would act as the legal entity and host for the Global Platform for Sustainable Natural Rubber (GPSNR) as of 1st December, 2019 until the platform decides to change hosting or create its own legal entity.

If you have any questions on the transition, please contact GPSNR Director, Stefano Savi (stefano.savi@gpsnr.org). 

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