Costs and benefits of peat development options

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1 Costs and benefits of peat development options Prof. Dr Lars Hein; Dr. Elham Sumarga (ITB); Saritha Uda, MSc; Aritta Suwarno MSc Wageningen University, the Netherlands

2 Introduction to the research group Environmental Systems Analysis: work on ecosystem services and peat in Indonesia: Prof. Dr Lars Hein Prof Dr Carolien Kroeze Dr. Elham Sumarga (now BIT) Aritta Suwarno, MSc Saritha Uda, Msc Dian Afrianti, Msc Assistant Prof. Lenny van Brussel (starting 7 April) Embedded in WUR, working with e.g. Environmental Economics, Plant Protection and Geoinformatics groups

3 Research has focussed on (but not limited to) Central Kalimantan With Palangka Raya University, various District and Provincial Government agencies, BOSF, KPH. Kapuas

4 Research activities the basis Analysing ecosystem services following the methodology of the System of Environmental Economic Accounts (collaboration with BPS, UNSD and World Bank) The SEEA framework allows integrating environmental information and economic statistics It follows a spatial approach: maps and spatial models (ArcGIS) It comprises information on ecosystem type, condition, services and assets Ecosystem services: all economic benefits provided by ecosystems

5 Research in Kalimantan - published Suwarno, A, L Hein, E Sumarga, Who Benefits from Ecosystem Services? A Case Study for Central Kalimantan, Indonesia. Environmental management, Sumarga E, L Hein, Benefits and costs of oil palm expansion in Central Kalimantan, Indonesia, under different policy scenarios. Regional Environmental Change (on-line) Suwarno A, L Hein, E Sumarga, Governance, Decentralisation and Deforestation: The Case of Central Kalimantan Province, Indonesia. Quarterly Journal of International Agriculture 54, 1: Sumarga, E L Hein, B Edens, A Suwarno, Mapping monetary values of ecosystem services in support of developing ecosystem accounts. Ecosystem Services 12, Sumarga, E., L. Hein, Mapping Ecosystem Services for Land Use Planning, the Case of Central Kalimantan. Environmental management, 1-14, 2014.

6 Ecosystem services physical units

7 Ecosystem services: monetary units

8 Scenario analysis

9 CBA of 3 scenarios

10 Hydrology also included (with Deltares) EMRP Block A and B: 490,000 ha, of which 62% peat

11 The future? (Hydrological modelling by Deltares)

12 Costs and benefits Scenario Period Physical flow (Tg FFB/year) OP After 25 years After 50 years After 100 years Oil palm production Jelutung production Carbon sequestration MIX After 25 years After 50 years After 100 years NPV ( million) Physical flow (Tg latex/year) NPV ( million) Physical flow (Tg C/year) NPV ( million) -4,424-4,424-4,424-4, Orangutan habitat Thousand ha Total NPV ( million) 0-1, , , , , , , ,177 Not included: fire and associated health costs

13 Need to monitor and share information Need to monitor peat uses An option is to use the United Nations SEEA Framework (apply to peatlands): ecosystem condition, ecosystem uses, ecosystem emissions) (OneMap/BPS) Important: share and exchange information between KPH, district, province and national level Transparency Countries Australia Colombia Costa Rica EU Netherlands Philippines UK

14 Thank you References Suwarno, A, L Hein, E Sumarga, Who Benefits from Ecosystem Services? A Case Study for Central Kalimantan, Indonesia. Environmental management, Sumarga E, L Hein, Benefits and costs of oil palm expansion in Central Kalimantan, Indonesia, under different policy scenarios. Regional Environmental Change (on-line; open access) Suwarno A, L Hein, E Sumarga, Governance, Decentralisation and Deforestation: The Case of Central Kalimantan Province, Indonesia. Quarterly Journal of International Agriculture 54, 1: Sumarga, E L Hein, B Edens, A Suwarno, Mapping monetary values of ecosystem services in support of developing ecosystem accounts. Ecosystem Services 12, Sumarga, E., L. Hein, Mapping Ecosystem Services for Land Use Planning, the Case of Central Kalimantan. Environmental management, 1-14, Plus submitted studies and work in preparation