Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

World News

Forest loss from Southeast Asia rubber is up to 3 times more than thought — study

SINGAPORE — Forest loss driven by rubber production in Southeast Asia could be two to three times higher than estimated, highlighting the challenges facing importers under pressure to find sustainable supplies, research showed on Wednesday.

Increasing global rubber demand is adding to pressure on natural forests and driving biodiversity loss, with Southeast Asia, responsible for 90% of global production, bearing the brunt, an international team of researchers warned.

The researchers, in a paper published by Nature, said that previous data suggested rubber was a relatively minor problem when it comes to deforestation, compared with commodities like soy and palm oil.

But high-resolution satellite data, which helped identify more plantations run by smallholders, suggested that forest losses “greatly exceed” previous estimates.

More than 4 million hectares of forest have been lost to rubber plantations since 1993, with two thirds of it in Indonesia, Thailand and Malaysia, they said.

More than 14 million hectares of land in the region — including China’s main rubber-producing provinces of Yunnan and Hainan — are devoted to rubber, up from 10 million in 2020.

Total losses could be even higher, with many plantations launched during a rubber boom 20 years ago now converted to other uses following a price crash in 2011.

A law will come into effect in the European Union (EU) at the end of next year to prevent commodity importers from buying goods that contribute to forest loss.

The law originally applied to soy, beef, palm oil, wood, cocoa and coffee, with rubber added at the request of EU lawmakers last December.

To avoid fines, importers must provide information proving that products do not come from deforested land after 2020.

The rules could encourage buyers to source rubber from big producers with less complicated supply chains, said Antje Ahrends of the Royal Botanic Garden Edinburgh, lead author of the study published on Wednesday.

“Given the multitude of stages in the rubber supply chain, and the scattered nature of rubber production, it is difficult for traders and manufacturers … to locate exact rubber sourcing areas and to verify that no deforestation has occurred,” she said.

Organizations like the Forest Stewardship Council are working to improve traceability for smallholders – responsible for 85% of global production – and ensure their rubber can be sold in Europe, she said. — Reuters

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved