Presented by Marcel Silvius, country representative in Indonesia for Global Green Growth Institute (GGGI). This session highlighted the idea of how peatland restoration can be in line with the green growth economic benefits. Speaker shared lessons learned from the integrated management interventions and jurisdictional approaches in balancing the economic and environmental needs in tropical peatland areas. Speaker emphasized the importance of social cohesion for the success of hydrological rehabilitation and reforestation. Online Webinar 3 - Exploring Criteria and Indicators for Tropical Peatland Restoration Governance and Socio-Economic Attributes 19 November 2020

1. Aligning peatland restoration with green growth
and economic benefits for people
(Plenary Opening Session)
Marcel Silvius

2. Critical steps for peatland restoration:
➢ Determine land tenure and land status in the landscape
➢ Consultation process to identify suitable land-use practices and
improved livelihoods options for and with local communities
➢ Obtain local commitment to engage with multiple stakeholders in
investment programs
➢ Hydrological rehabilitation of deep peat: full rewetting
➢ Reforestation
Green growth:
Development that simultaneously achieves poverty reduction, social
inclusion, environmental sustainability and economic growth.

3. 100,000 ha Utar-Serapat
peatland landscape
Integrated Landscape Approach
• Restoration of fire-prone peatlands supported by buffer zones
and business models for local enterprises and livelihoods
• Addressing the full hydrological unit
Utar Serapat Peatland Landscape (KHG 25)
• Cross-border of Central & South Kalimantan
• Deep peat: 40,000 ha, which has been:
o partially drained
o disturbed by industrial road development
o High risk of further degradation through
deforestation for agriculture, continued
drainage and fires
Example of a landscape-wide project

4. Integrated management interventions
Buffer zone for compatible uses
on shallow peat (< 50cm)
Sustainable production zone
on non-peat soils
Core area for peatland
protection & restoration
Rubber Agriculture
• Protection measures
• Restoration measures
• Reforestation activities
• Carbon conservation
• Constraints on other uses
SengonReforestation
(endemic sp.)
Reforestation
(e.g. gelam)
Canal
blocking
Mixed
Agroforestry
HoneyGelam Aquaculture
&
duck farming
NTFPs
(e.g. illipe
nut)
Mixed
Agroforestry
Peat
dome
Peatland zonation:
➢ core and utilization zones based on hydrology, biophysical features,
degradation level, restoration potential and socio-economic aspects

5. LEGEND
Investors and Financiers Potential Financial Instruments Communities
Private sector Non-profit sector Government stakeholders
Business case for Gelam (on peat)
Investing in new innovative business model for peatland restoration
Gelam wood,
carbon, honey
and oil (SMEs)
Timber
Corporate
Offtake
agreements
(1)Partial/Full Equity
(2)Offtake agreements
Smallholder
farmers,
communities
(1) Operations contracts
(2) Partial equity
Microfinance
institutions
International
Funds
(e.g. GCF)
Commercial
banks
Trading firms,
Niche marketing
agencies
(1) Partial equity
(2) Mezzanine
finance
Impact
Investors
(1) Trade finance
(2) Short term Debt
De-risking instruments
(e.g. equity, first loss)
Microfinance
(1)Budgets
(2)Resources mapping,
allocation
National, Local
Government
Additional Policy and
regulatory support
Carbon finance
Carbon credits offtake
Results-based payments
Non-profits
NGOs
Technical
assistance

6. Buffer zones:
Mixed agroforestry
incorporating Sengon
(±6,000 ha)
Reforestation
(~10,000 ha)
Canal blocking
& Reforestation
(~500 km)
Buffer zones:
Semi-natural, seasonal wetlands and
wetland grasslands: fisheries, ducks
Sustainable production:
Agriculture, rice, fisheries
and ducks
Buffer zones:
Fish ponds
Buffer zones:
Gelam and Honey
Proposed integrated management
Coal road

7. • Provinces are now the jurisdictional unit
responsible for resource management in
Indonesia
• Mechanism to coordinate and ‘bundle’ the
management and financing instruments for
multiple “peat landscapes” enabling upscaling of
best practices
• A jurisdictional enabling platform can help to:
✓ share lessons learned
✓ mainstream green growth investments at
landscape level,
✓ design, coordinate and finance larger bankable
projects based on a common vision & joint MRV
Jurisdictional approach Landscape-wide projects supported and replicated
within a provincial jurisdictional framework

8. Concluding Remarks
If your priority is ecological restoration and fire prevention:
➢ it will be critical to have good governance, social inclusion,
and economic benefits in order to make the ecological
approach workable and socially sustainable.
If your priority is economic development and poverty reduction:
➢ it is critical to have a sound ecological approach to make the
economic approach environmentally sustainable.
This is why an integrated landscape approach is necessary.

9. Thank you