Indonesia Hopes to Include Peat in New Climate Deal
Date: 28-Aug-07
Country: INDONESIA
Author: Adhityani Arga
Under the Kyoto Protocol, developed nations can pay poor
countries to cut emissions from activities such as the
manufacture of refrigerants and fertilisers as well as
capturing greenhouse gases from farm waste and rubbish dumps.
But emissions cuts from forest areas such as peatlands are
not yet eligible for trade, because they were excluded from the
Kyoto Protocol's first round which runs out in 2012.
"In order for Indonesia to properly preserve its peatlands,
the world has to provide incentives, because we know that peat
absorbs carbon more than anything else in the world," Wahjudi
Wardojo, director general for forestry research at Indonesia's
Forestry Ministry, told Reuters by telephone.
"We think the current scheme has to be reviewed. The carbon
market should be allowed to finance restoration of degraded
land and reforestation of any kind, because there should be
incentives for any effort to reduce carbon emission."
Wardojo is leading the Indonesian team that is drafting a
proposal on cutting carbon emissions by keeping forests and
peatlands intact at a major conference in Bali in December,
which is expected to initiate talks on clinching a new deal by
2009 to fight global warming.
Under Kyoto, about 35 rich nations are obliged to cut
emissions by 5 percent below 1990 levels by 2008-12.
"The draft will include long-term projections, showing that
businesses can profit by taking part in the RED scheme by
aborting peatland conversion projects than cashing in on palm
oil," Wardojo said, just ahead of a three-day conference in the
historic city of Yogyakarta on peatlands, described by some as
the new black gold.
"Once completed, it will become Indonesia's ammunition to
seal the new climate deal."
Participants from 189 countries are expected to gather in
Bali for December's UN-led summit, which will hear a report
on Reduced Emissions from Deforestation (RED) to decide the
fate of a new scheme that aims to make emission cuts from
forest areas eligible for global carbon trading.
HOT INVESTMENT TICKET
Peatlands are considered a hot new investment ticket and
investors around the world are dreaming of the billions
Indonesia's festering carbon-rich bogs could bring in as the
world battles global warming.
Around US$30.4 billion of carbon credits -- representing 1.6
billion tonnes of carbon dioxide (CO2) -- were bought and sold
last year in Europe by firms aiming to trade off
business-related carbon emissions for emissions cuts achieved
elsewhere.
Experts estimate Indonesia has 20 million hectares (50
million acres) of dense, black tropical peat swamps, formed
when trees, roots and leaves rot, that are natural carbon
stores.
However, when burnt or drained to plant crops such as palm
oil, peat releases big amounts of CO2.
A 2006 Wetlands International report found Indonesia's
peatlands emit 2 billion tonnes of CO2 a year, more than the
annual greenhouse gas emissions from Japan or Germany.
Indonesia is home to 60 percent of the world's threatened
tropical peatlands and among the world's top three carbon
emitters when peat emissions are added in, said a report
sponsored by the World Bank and Britain's development arm.
"Among the challenges is keeping track of all the types of
peatlands, their status and condition. Then to put a price tag
on each of them is another major challenge," Wardojo said.