Financing the Jute Value Chain and Its Ecosystem Services: Financial and Equity Opportunities for the Global South
Year: 2026
Type: article
Abstract: Jute is an annual bast-fibre crop grown overwhelmingly by smallholders in the Ganges–Brahmaputra delta. It is promoted in climate negotiations as a carbon-negative, biodegradable substitute for synthetic packaging and as a basis for green industrialisation. This article asks whether, and on what terms, the jute value chain and its ecosystem services can be turned into bankable and equitable finance. It first checks the figures used in recent policy presentations against primary sources. Most finance-side figures are confirmed. The widely repeated claim that a hectare of jute absorbs 15 t CO2 and releases 11 t O2 in a season describes gross photosynthetic uptake: seasonal net ecosystem exchange has been measured at about 10.3 t CO2/ha, and durable soil-carbon gains are an order of magnitude smaller. A transparent cash-flow model of a 1,500-hectare cooperative cluster supplying a diversified-products unit gives an illustrative internal rate of return of about 14 per cent. Carbon revenue adds almost nothing at current voluntary-market prices: it covers monitoring costs only above roughly USD 33–83 per tonne of CO2e, depending on the soil-carbon gain. Fibre prices, product prices and the cost of capital dominate. The article therefore argues that jute should be financed mainly through grant-based adaptation and plastics-substitution windows, results-based payments, concessional and guaranteed credit for diversification, and offtake contracts, with carbon credits treated as a co-benefit. Equity safeguards are built in: cooperative ownership, women's wage parity in post-harvest work, worker transition support and a no-new-sovereign-debt test. The article closes with a bankability screen, a ten-item illustrative pipeline and monitoring indicators. KSCCN article, 22 pages, with an illustrative Python cash-flow model (script included in the deposit), seven figures, seven tables and Harvard references. Developed from the author's two presentations at COP31, Antalya, 10 November 2026. The views expressed are those of the author.
Author: Mamun, Syed Muntasir
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225783793