A team of researchers from the World Agroforestry Centre (ICRAF), the Center for International
Forestry Research (CIFOR) and their Indonesian partners reported on 20 November that the conversion of forests and peatlands for various land uses in Indonesia had generated very little economic benefit while releasing huge amounts of greenhouse gases into the atmosphere.

These findings come from a study that covers three provinces of Indonesia (16 percent of the land
area) and accounts for 16 percent of the country’s greenhouse gas emissions. It can therefore be
considered relatively representative of the situation across the country. Regional Coordinator for the World Agroforestry Centre (ICRAF) in Southeast Asia, Dr Meine van Noordwijk, explained that the study combined data on land use changes and carbon dioxide emissions in these provinces over a 15 year period. It calculated the economic benefits derived from different types of land use, such as oil palm, rubber, coffee and mixed agroforestry.

“Combined, these provinces emit 400 mega-tons of carbon dioxide (CO₂) per year from the conversion of forests and peatlands,” Dr van Noordwijk said. “We found that less than two percent of these emissions resulted in clear economic benefits generating more than US$15 per ton of CO₂ emitted.”

Six percent of the emissions generated benefits between US$5 and US$15 per ton of CO₂, a little more than half of emissions generated between $1 and $5 of benefits and about 40 percent between 0 and $1 per ton of CO₂. The recent study by the Alternatives to Slash and Burn (ASB) partnership is based on data collected in three provinces – East Kalimantan, Jambi, and Lampung – from 1990 to 2005. Data collection started in 1994 and is unique in that it covers the whole range of land uses between agriculture and forestry.

Dr Achmad Muzakir Fargi from the Agency for Agricultural Research and Development and former
Chair of ASB Indonesia said the research results are very rich and should inform the country’s policy makers and negotiations in the upcoming Bali meeting. Scientists at the meeting in Bogor agreed the study demonstrated that it is possible to substantially reduce CO₂ emissions in Indonesia without impacting on the country’s economy.

Dr Sonya Dewi, head of the Spatial Analysis Unit of WorldAgroforestry said the current high prices for rubber and oil palm means these crops can be profitable, and where land with low biomass has been converted for their production it is possible to have sustained economic benefits at low (or negative) CO2 emissions. “But the majority of current plantations and smallholder systems for rubber and oil palm have required deforestation and caused high CO₂ emissions but not brought clear economic benefits,” Dr Dewi said.

Dr A. Ngaloken Gintings from the Forestry Research and Development Agency added that rubber and oil palm should only be developed on land with low existing carbon stocks. With the European carbon market last week paying 23 Euro per ton of CO₂ and some emissions in Indonesia only receiving benefits of 0.23 Euro per ton of CO₂, there is a very real opportunity for the country to benefit from a carbon market which compensates for Reducing Emissions from Deforestation and Degradation (REDD).

After the USA and China, Indonesia is the largest emitter of greenhouse gases, and it has the highest global emissions based on agriculture, forestry and other land uses. Dr van Noordwijk warns that international mechanisms (to be discussed at the upcoming UN Climate Change meeting in Bali) must not only look at ‘forests’ but all types of land uses for their potential to reduce emissions.
“REDD as currently discussed will only address part of the issue and it is not yet clear how incentives will reach people on the ground who need to benefit from changing land uses.”

Senior Scientist with the Centre for International Forestry Research (CIFOR), Dr Daniel Murdiyarso, said he was pleased the work of the ASB partnership and the data they had been collecting for many years would now be useful in the establishment of a carbon market for Indonesia. “We need to continue collecting data on carbon stocks and the economic benefits of different land uses so that Indonesia can explore ways to reduce its CO₂ emissions without affecting the countries economy,” Dr Murdiyarso said.

“This data will also help us to benefit from an emerging carbon market as investors will need evidence of success in emission reductions before any money changes hands. “While additional funding through an international carbon market can provide incentives, Indonesia must make a real commitment to emission reduction.” He added.