Natural Rubber and the European Union Deforestation Regulation: Perspectives from a young sustainability advocate working on natural rubber

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Earlier this year, I joined the Global Platform for Sustainable Natural Rubber (GPSNR) to work with smallholder farmers, civil societies, manufacturers, processors and end users on capacity building for those at the bottom of the natural rubber (NR) supply chain. The primary goal was to equip them with the necessary skills for sustainability reform, with the ultimate goal of cultivating better quality raw materials and fostering greater economic mobility. This journey provided me with valuable insights, enabling me to learn from industry professionals and gain an understanding of sustainability issues from diverse perspectives. In this short article, I would like to share some of my key takeaways from being exposed to GPSNR’s initiatives for a sustainable NR industry and interacting with those from other commodities on similar journeys.

To begin, the adoption of the European Union Deforestation Regulation (EUDR) is widely celebrated as a significant step in combating climate change and demonstrates the EU’s commitment to ensuring a sustainable supply chain. However, my interactions with smallholder members of GPSNR shed light on the concerns raised about the shifting of compliance costs to producers. One smallholder member I work with has often highlighted the challenge of balancing the cost of implementing sustainable practices against revenues. They expressed their desire for tangible benefits, such as receiving premium prices for their products, if they were expected to adopt sustainable farming methods. To truly ensure a sustainable supply chain, it is important for governments and industry players to support and assist the vulnerable groups along the supply chain in overcoming the financial barriers they face. This will help ensure that the burden of compliance costs is not disproportionately placed on their shoulders.


Attending the Partnerships for Forests (P4F) Forum 2023 in London. P4F’s invaluable support has played a pivotal role in empowering GPSNR’s smallholders and fostering sustainable engagement.

Additionally, while initiatives to combat deforestation remain crucial, we must not overlook the importance of addressing social issues and the potential economic consequences of such regulations. At the Amsterdam Declaration Partnerships in May 2023, I had the opportunity to hear a minister from a producing country emphasize the importance of consuming nations recognizing the economic and social consequences. Failing to consider economic and social consequences can have far-reaching effects such as increased poverty levels and inequality. Therefore, a holistic approach that balances all three pillars of sustainability is necessary to safeguard the well-being and livelihoods of those affected while protecting the environment.

Lastly, drawing from my experience during the National Initiatives Strategy meeting, an initiative to enhance social, environmental, and economic welfare on a global scale, it became clear that national initiatives have certain limitations when it comes to supporting multiple commodities simultaneously. Therefore, these initiatives need to prioritize specific commodities in order to ensure practicality and effectiveness. During the meeting, it was collectively acknowledged that national initiatives do not need to take the lead in every solution, but rather offer support to industry and government-led initiatives while fostering effective collaboration to avoid duplication in allocation of resources. This also highlights the significance of industry-led solutions, which can complement the work of national initiatives. Industry players’ proactive measures can help anticipate and mitigate potential risks in the supply chain more effectively, promote sustainable practices, and contribute to the overall goal of combating climate change and complying with EUDR.

As I reflect on my experience with GPSNR, it is evident that sustainability in the NR supply chain has been a longstanding commitment even prior to the introduction of the EUDR. Various initiatives have been taken to promote sustainable practices within the NR industry, including the approval of reporting requirements and the adoption of the GPSNR policy framework. These initiatives aim to encourage GPSNR members to align their practices with GPSNR Policy Framework and thus, establish strong sustainability commitments across the NR supply chain.

This year marks a significant transition for GPSNR as we move from commitment to implementation, focusing on four key fronts. Firstly, our efforts are dedicated to finalizing the GPSNR assurance model, an encompassing framework that establishes sustainability guidelines and standards for the entire supply chain. Additionally, GPSNR is also actively working on implementing the shared responsibility mechanism, wherein the manufacturers collaborate to share the costs of capacity building, fostering an equitable and sustainable NR industry.

Furthermore, GPSNR is expanding its capacity building initiatives in essential areas such as Good Agricultural Practices (GAP), agroforestry, and disease management. These efforts aim to empower local communities in key NR producing regions, particularly in Thailand and Indonesia. GPSNR also implemented a smallholders-inclusive strategy, whereby smallholders members can participate in the decision-making processes, become part of the Executive Committee of GPSNR, and have the voting rights at the General Assembly. This ensures that the voices and perspectives of smallholders are taken into account in the development and execution of sustainable natural rubber initiatives.

Lastly, GPSNR is actively striving to fine-tune decisions that support a smoother implementation of the EUDR, which include shared due diligence systems, joint deforestation analysis tools, and common traceability tools, all funded by manufacturers. These measures will enhance transparency and accountability within the NR supply chain.

Members of the Smallholder Representations and Capacity Building Working Group, which include smallholder members from Thailand and Indonesia,  come together in Singapore, bringing their invaluable perspectives to GPSNR workshops in June 2023.

In conclusion, my journey with GPSNR as a passionate sustainability advocate has underscored the significance of collaboration in forging a sustainable NR industry. As we navigate the path forward, it is crucial to address the challenges ahead while maintaining a delicate equilibrium between environmental, social, and economic considerations. The initiatives undertaken by GPSNR, including capacity building, smallholder inclusion, and strategic decisions to support EUDR implementation, reflect a steadfast commitment to sustainability. Together, we can make a positive impact on the global NR supply chain and create a sustainable future.

More To Explore

Legality Studies for Thailand and Indonesia

GPSNR has completed a pair of legality studies that describe the relevant laws and regulations of Thailand and Indonesia that are relevant to smallholder rubber farmers. This work was produced by the European Forest Institute (EFI) with the financial support of the Global Platform for Sustainable Natural Rubber (GPSNR). These documents were produced in close collaboration with local legal and rubber industry experts contracted by EFI. 

The legality matrix in these studies considers the applicable legislation for smallholders and also outlines typical compliance issues related to land and land-use rights, environmental protection, third parties’ rights, labor rights, human rights, and child labor. In addition, the documents also highlight the key obligations that farmers need to fulfill to ensure compliance with all relevant laws.

If you are a GPSNR member, you can access these by logging on the Members Portal here

If you are not a member and would like to access the studies, please write to us at info@gpsnr.org.

 

News

GPSNR Working Groups Update: October 2024

Assurance Model Task Force: The Executive Committee (EC) has reviewed the Assurance Model documents and approved them to be submitted to the General Assembly for a vote. The EC has also identified several topics that will require further discussion and finalisation next year. These include minimum requirements, the mechanism for third-party oversight of assessor accreditation, the format and content of assessment result disclosures, the process for assigning third-party assessors, claims, refinements to the classification system for major non-conformities, and a risk-based approach to assessment scheduling. These topics will be presented for a vote at the 2025 General Assembly. For further context, here is the link to the compilation of feedback on the Assurance Model documents received since June, along with responses and changes made based on these comments: https://rubberplatform.sharepoint.com/:b:/s/GPSNRMembers/EWLmS86xDkxMtce9wKEuLjwByB6hU_QXrROu_XJ9DuK0kA?e=ZYYike

Additionally, the EC has agreed that the first three years of assessments (2027-2029) will be conducted annually, with mandatory public disclosure of a category-level summary of the assessments, while company-level disclosure will be optional for those being assessed.

 

Smallholders Representation and Capacity Building (SCB) Working Group: 18 members from Ghana were approved this month, with an onboarding call held on 10 October 2024. Additionally, the EC Election Campaign call for smallholders took place on 29 October 2024.

Koltiva submitted the final report for the Indonesia GAP Coaching Project (Phase 2) and delivered a final presentation on 17 October 2024. The third phase of the Indonesia GAP Coaching Project is now underway and is currently in the preparation stage. For the Thailand GAP Coaching Project, Koltiva presented the first full-year project results on 22 October 2024. Meanwhile, RAFs completed training for 1,000 farmers ahead of schedule in the Thailand Agroforestry Project. Furthermore, a curated content list and promotional poster for Rubber Wiki have been created to engage smallholders through the Knowledge Sharing Platform.

Looking ahead, a Pre-GA Webinar for smallholders is scheduled for 18 November 2024, and 10 new Cambodian smallholders have applied for membership and are awaiting approval.

For Capacity Building Projects, SCB WG members are requested to review and provide feedback on the final report for the Indonesia GAP Coaching Project (Phase 2) by 28 October 2024. Koltiva will also submit agricultural calendars and training materials for the third phase of this project for SCB WG review by the same date. For the Thailand GAP Coaching Project, Koltiva is revising the full-year review report based on feedback from SCB WG members. Additionally, the Project Management Subgroup will hold its kick-off meeting on 23 October 2024.

 

Shared Responsibility Working Group: The Shared Investment Panel (SIP) has officially been established following approval from the GPSNR Executive Committee.

The Secretariat is continuing to support the implementation of the Shared Investment Mechanism, with the Project Management Subgroup currently reviewing the proposals received. The SIP will select its co-chairs and plans to hold its kick-off meeting early next month.

Regarding the Value Transfer mechanism, the Executive Committee will form a task force with one representative from each ordinary member category. This task force will work on the next steps to finalise a revised proposal, with the aim to present it at the in-person meeting in February 2025.

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