NDF - Financing for climate change and development projects

NCF 7: JutePP -the sustainable material for plastic products

Photo: Juteborg and Glenn Ljunggren
Photo: Juteborg and Glenn Ljunggren
Photo: Juteborg and Glenn Ljunggren
Photo: Juteborg and Glenn Ljunggren
Photo: Juteborg and Glenn Ljunggren
9.11.2018
The project produces jute fiber reinforced plastic granule (JutePP) in Bangladesh, a sustainable material for plastic industries while validating the inclusive Farmer to Factory (F2F) jute supply chain for a future jute certification and provide jute farmers a fair price.

Bangladesh
JutePP -the sustainable material for plastic products
Ref: NDF C96

Nordic Partner: Juteborg Sweden AB
Local Partner: Esquire Accessories Ltd
Other Partners: Inclusive Business Sweden, JuteLab International
Total Project Cost: EUR 525 624
NCF Financing: EUR 250 000
Agreement Signed: 17 October 2018
Project type: Combination
Duration: 24 months
 
Description
 
In 2009, it was estimated that 10% of modern waste was plastics (Thompson et al.), while, 50-80% of debris in marine environments is plastic.
The project, called JutePP - the sustainable material for plastic products, aims to use the technical properties of jute, a natural fiber grown in Bangladesh and India having the potential to create sustainable materials for plastic-based applications. JutePP granules are the innovative alternative to oil-based unsustainable plastic raw materials. The combination of 50% jute and 50% polypropylene will reduce plastic usage by half and has the potential to replace plastic completely by using biomaterial. JutePP is the perfect solution to replace plastic, one of the topmost causes of carbon emission in the world. Juteborg, the lead Nordic partner and Esquire Accessories Ltd, the local partner in Bangladesh, will together produce JutePP and sell to plastic product manufacturers. The main raw material is jute, grown and processed in Bangladesh. The environmental impact of the project is the avoidance of approximately 18K MT equivalent CO2 emission.
 
The jute fiber is often connected with poverty reduction in Bangladesh. The project will also validate the Farmer to Factory (F2F) jute supply chain model which aims to establish a jute certification process while ensuring a fair price to the jute farmers. The social impact of the validation is primarily connecting 1200 farmers with increased income and ripple effects to their families positively impacting approximately 4,600 people. This validated model would also create an example for the entire jute-driven economy in Bangladesh where jute contributes 1.6% to the national GDP (Jute economy Bangladesh, 2009). Therefore, ensuring the fair price and increased demand for high-tech use for the jute fiber through validating F2F, will create the possibility to lift the jute farmers' lives by increasing their income.
This project is classified to address both climate change mitigation and adaption, which strongly aligns with Bangladesh’s national climate change strategies and plans. This is a big step forward towards the solution of having the best composite which will reduce the negative environmental impact of oil-based plastics in the world.
 

Expected key results

• Tested JutePP green business concept together with the validated inclusive Farmer to factory (F2F) jute supply chain model
• 6 multi-stakeholder partnerships developed
• 4655 persons are benefited (directly and indirectly) with improved livelihoods along the JutePP value chain in Bangladesh
• 615.6 tonnes of carbon emission is reduced from the replacement of the virgin polypropylene with JutePP granules at 50% jute concentration at project completion
• 18 550.08 tonnes of carbon emission equivalent reductions are expected during the lifetime of JutePP project’s mitigation investments