Worldview Impact
 
Making your Green Investments Grow
Frequently Asked Questions

Q : Why contribute to Worldview Impact's rubber tree plantation?

  • Worldview Impact aims to provide effective solutions to reduce climate change by planting rubber trees for absorption of carbon dioxide; cut poverty by creating sustainable livelihoods for the poorest sections of the population; and to work in close cooperation with local communities to support sustainable development.
  • Worldview Impact makes it possible for the average person to invest in ecological and environmentally beneficial rubber trees. It is a sound investment with very high returns.
  • This type of investment was previously the exclusive domain of large investors like multi-national, banks and retirement funds.
  • By investing in our rubber tree plantations you are directly contributing to a better environment for future generations.

Q : Where and what method will be used to plant the rubber trees?

  • By carefully studying the opportunities in utilizing the land for sustainable development, we have come to the conclusion that the natural forest should be preserved, and that planting of new trees should only be done in pockets of open, underutilized land.
  • This will lead to intercropping, to conserve the bio-diversity of the area and provide a healthy environment for the new trees as well.
  • The plantation will be based on best organic practices to secure sustainable development at all levels.
  • Due to wild elephants visiting in the first project area, the project will avoid planting crops which could lead to conflict with wildlife, but at the same time have maximum carbon binding effect.
  • By planting rubber trees, the goals of the project can be met with maximum impact.
  • Rubber based agro-forestry involves a complex and diverse cropping system that combines the growing of rubber - and other agricultural crops in the area - in a sustainable manner.
  • A desirable rubber based cropping system will give a good economic yield while protecting the environment, conserving soil, water and nutrients.

Q: What type of rubber tree species will be planted and how would it take carbon dioxide from the atmosphere?

  • Perennial tree crops (eg. forest trees) are known to function as natural “sponges” for absorbing carbon dioxide from the atmosphere. Carbon sequestration is observed through the uptake of carbon dioxide from the atmosphere, and its conversion into cellulose and organic matter.
  • The rubber tree Hevea Braziliensis was first introduced as a crop for plantation agriculture many years ago from the wilderness of the Amazon jungles.
  • Hevea behaves as a typical rain forest tree that would efficiently function in carbon sequestration.
  • The Kyoto Protocol’s Clean Development Mechanism (CDM) allows a country that emits carbon above agreed-upon limits to purchase carbon offsets from an entity that uses biological means to absorb or reduce greenhouse emissions.
  • The CDM is currently offered for afforestation and reforestation projects, but it is expected that it in the future it will be extended to carbon sequestration in agricultural soils. Markets for soil and plant carbon sequestration are also developing outside of the protocol in addition to those promoted by CDM.

Q: How much carbon sequestration can be achieved by the rubber tree plantation?

  • The amount of carbon sequestered in one hectare of a 31 years old stand is 596 Megatonnes, the major portion coming from the trunks and branches.
  • The total amount of carbon sequestered in one hectare of rubber plantation made up of a combination of tree biomass, latex produced and contribution from leguminous cover crops, amounts to 680 Mt.
  • Consideration of additional soil carbon sequestration in the same land will provide additional financial benefits.
  • And in addition to this, the benefit from using natural rubber reduces the need for carbon based raw materials.

Q: What are the comparative advantages of contributing to Worldview Impact's rubber plantation?

  • We will carefully select the highest yield rubber trees, with a mix of various clones, to secure the most sustainable plantation practices.
  • The project’s concept of 100% organic agricultural methods, will add maximum carbon absorption value, in addition to avoiding the use of chemical fertilizers and pesticides made of carbon based raw materials.
  • According to Dr. N. Yoganathan, from the National Institute of Plantation Management, Sri Lanka, organic technologies used in rubber plantations slow down soil carbon oxidation and increases carbon fixation and storage, providing maximum benefit of the project.
  • Another competitive advantage of our business is the carbon benefits that we will gain from the project.
  • Furthermore, our aim is to establish value added benefits to the raw material from rubber tapping - such as production of medical gloves and other dipped products - which will further increase the economic benefits of the project for the local population, as well as the investors.
  • The technology that we will use will be environmentally friendly based on renewable energy systems that we will generate at the rubber plantation from solar, wind and micro-hydro sources. Our rubber mills will all run on clean and efficient machines that will have very low carbon output.

Q : What are the social and environmental benefits of the project?

  • The competitive edge of our business lies on that fact that we will have environmental benefits and poverty reducing strategies incorporated into our business model.
  • As we know there is an urgent need for action to both neutralize carbon emissions as well as reduce poverty on a large scale. In combining these targets, the overall priority of our business is to provide rapid impact in South and South East Asia.
  • Binding of CO2 by planting fast growing rubber trees has an immediate effect, which continues until harvesting of the trees on maturity (30 years), and thereafter by new planting. It is estimated that 4 fast growing tropical trees is equal to the yearly footprint of an average person from a middle income society.
  • With the aim of planting 1 million trees during the first 5 years, the environmental benefit of the project will be equal to the footprint of 250,000 persons. Planting of rubber trees of commercial value will also ease pressure on rainforests.
  • With the aim of planting 1 million trees during the first 5 years, the environmental benefit of the project will be equal to the footprint of 250,000 persons. Planting of rubber trees of commercial value will also ease pressure on rainforests.
  • A reduction in poverty will instantly be achieved, both by planting of rubber trees and other crops to be identified according to local environments in the various countries and then gradually developed.
  • Additional knowledge will be shared with local communities in training on clearing of lands, making of compost and production of micro organisms for fertilizing, and on techniques to maintain forests and plantations with the highest levels of return.
  • In addition, income from sale will be shared with local communities or local institutions providing the land, as part of share cropping, lease agreements, or other methods selected by local partners.

Q: What is the projected income from the rubber tree plantation?

  • The projected income from the first project to be started in 2008 is very encouraging, based on carbon trading benefits. Compared to other investment options in the global marked, the project is very competitive in financial terms, in addition to a high impact in mitigating climate change, and in providing livelihood opportunities to the poorest in underserved areas.
  • Potential income to the project is Euro 0,80 per kg raw rubber based on present prices, after workers have been paid salaries of more than 50% above minimum wages - including additional social benefits, and other production and maintenance costs are met, and a sizeable amount set aside for community development. Thus guaranteeing benefits to all stake holders.
  • The expected average yield is estimated to be 1500 kg per Ha per year, which will generate an income to the project of Euro 1200 per Ha per year, guaranteeing the sustainability of the project.

Q: What would happen if the price of latex unexpectedly drops and tapping is not economical?

  • In case the price of latex unexpectedly drops and tapping is not economical, the project will still generate carbon benefits, as the trees will continue growing.
  • Worldview Impact will guarantee that the trees will be protected during the 30 years cycle of the project, thereafter to be replanted with new trees.
  • The indications are nevertheless that the prices of latex may further increase, thereby strengthening the economic benefits of the project.

Q: How can you be sure that rubber prices will be increasing in the next 5 -15 years?

  • We are the first social enterprise to start large scale commercial rubber plantations in Asia so we have social and environmental benefits for the communities.
  • Rubber will be yielding in year five and will increase to a plateau at between years 15 and 20. It will then begin to decline, but will experience with a second, smaller peak towards the end of the life of the tree through “slaughter” tapping.
  • Worldview Impact only selects rubber tree species that have high rubber production and good value.
  • Price also depends on quality of rubber tapping and we ensure this by planting the rubber tree species under proven site conditions, in countries where it has previously grown.
  • Our knowledge of the Rubber Industry will ensure that there are good profits to be made over the next 5 to 15 years.
  • Supply will no doubt have an effect on the market after 15 years.
  • However, the price of rubber will always go up with the price of oil.
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Worldview Impact is a Social Enterprise in cooperation with LSE Entrepreneurs at the London School of Economics and Political Science
and it was incorporated in England and Wales on 28th August 2007 as a limited company under the Companies Acts (Reg no. 6353759)