Malaysia is the world’s top manufacturer of examination and surgical natural rubber (NR) gloves, exported mainly to the USA and Europe. The glove manufacturing process yields effluent which must be treated to comply with the stringent regulatory requirements imposed by the Malaysian Department of Environment. To make glove manufacturing an eco-friendly process, efforts are geared towards minimizing and utilizing waste or converting it into raw material for making value-added products. Waste generated from the glove industry is mainly rubber sludge which is obtained from the chemical flocculation stage of the effluent treatment process and consists of mainly rubber, remnants of compounding ingredients and water. R&D work by the Malaysian Rubber Board on waste utilization and resource recovery investigations have revealed many uses for this sludge. This paper briefly outlines only one of the many options available, which is the conversion of the sludge into sludge derived fuel (SDF). Preliminary study has identified three formulations of SDF with calorific values (CV) exceeding 16 000 kJ/kg, matching a good grade coal. This was considered as promising results which warrant explorative work for further increasing the CV of SDF to turn it into a viable fuel substitute in the latex products manufacturing industry and subsequently apply for a Clean Development Mechanism status to generate income.