A collaborative project in Aceh, Indonesia, demonstrates a scalable model for sustainable cocoa production, with partners Sugata and KOLTIVA receiving support from Unilever, the UK’s Foreign, Commonwealth and Development Office (FCDO), and EY. The initiative integrates digital traceability and climate-smart agriculture to transition smallholder farmers to regenerative, deforestation-free practices. The program, part of the Transform Bestari Challenge, focuses on five key pillars, including regenerative agriculture and comprehensive cocoa waste management.

The primary challenge for the region’s cocoa industry is twofold. Environmentally, farmers face declining productivity from aging trees, pest pressure, and climate change impacts, which has historically driven deforestation in the critical Leuser Ecosystem. Commercially, new international standards, particularly the EU Deforestation Regulation (EUDR), create urgent pressure for supply chains to prove sustainability and traceability, threatening the livelihoods of farmers unable to adapt.

To address this, the project implements a multifaceted solution rooted in regenerative agriculture. A central component of this strategy is the on-site conversion of agricultural waste into a valuable resource. The program has installed five biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More units specifically to process waste cocoa pods, turning this potential liability into a stable compost. This biochar-based compost is then used to reduce farmer dependence on chemical fertilizers, improve soil health, and sequester carbon.

In its first year, the initiative has yielded significant results. Over 500 farmers across 21 villages have received advanced training, and 10 regenerative demonstration plots are now operational. The installation of the five biochar units represents a practical and successful application of waste-to-value principles within the program. Concurrently, 173 farms have been surveyed for greenhouse gas emissions monitoring, providing a baseline for verifying the project’s climate impact.

This project showcases biochar as a vital tool within a major corporate sustainability framework. The model demonstrates how biochar production can directly solve agricultural waste challenges, support climate-resilience goals, and help a global supply chain meet stringent new environmental regulations, providing a clear blueprint for scaling biochar as a practical circular economy solution.