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Economic indicators for peatland restoration

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Presented by Sonny Mumbunan, Scientist, Research Center for Climate Change, University of Indonesia, at "Online Workshop Series:Exploring Criteria and Indicators for Tropical Peatland Restoration", on 2 Sep 2020.

This presentation offered key insights into the financial aspects of peatland restoration efforts. Some important questions include – how to generate the funds needed for carrying out restoration? How to devise a plan such that the benefits of restoration are distributed equitably.

Publicada em: Meio ambiente
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Economic indicators for peatland restoration

  1. 1. Economic Indicators for Peatland Restoration (Session 2) Sonny Mumbunan Research Center for Climate Change, University of Indonesia; World Resources Institute (WRI) Indonesia
  2. 2. Criteria considerations for economic indicators Policy relevance. Addressing key peat restoration issues encountered by national and sub-national governments, and stakeholders. Integration. Facilitating different elements to be integrated (such as among expected economic outcomes, means of implementation like financing, and peat policy interventions). Analytical soundness. Being informed by latest science. Measurability. Data for indicators is available, cost- effective, and with integrity.
  3. 3. Outcome indicators in peat provinces Riau Province South Sumatra Province Provincial Mid-term Development Planning (RPJMD), 2019-2024 Economic growth (aggregate and sectoral), capital formation, employment, inflation, poverty, per capita expenditure, investment, balance of payment, farmer’s terms of trade, (income) inequality, … alongside human development, life expectancy, … environmental quality, land cover, …
  4. 4. Reflections on outcome indicators § How and to what extent peat restoration (as policy intervention) contribute to achieving the targets in these outcome indicators? § Do information in the indicators capture and reflect both synergies and trade-offs in the presence of policy intervention(s) for peatland restoration? § Viewed altogether, are e.g. paludiculture commodities more competitive than those of timber and/or palm oil in terms of “peat restoring’’ AND “welfare enhancing’’? Can these relations be traced in information within the indicators?
  5. 5. Means of implementation: financing The indicators capture and reflect information (hopefully measurable) in terms of … § Domestic mobilization of resources (e.g. fiscal transfers, non-state expenditures) § Result Based Payments associated with peatland restoration including non-carbon benefits from e.g. bilateral partnerships, UNFCCC-Green Climate Fund § Public, private and blended finance in polycentric governance setting (cross-scale: international, national, sub-national; cross-actors: different stakeholders with varying preferences, priorities)
  6. 6. Bringing them together Integrating policy interventions for peatland restoration, outcome indicators, means of implementation (financing) in one breath agriculture land, palm oil and timber (mineral and peat) water table depth water drainage peat decomposition peatland emissions + natural peat fires - - - land productivity (peat) agriculture production (palm oil and timber) + + man-made peat fires + + +ecosystem integrity+ - - human health labor productivity gdp flood and drought risk - - tourism arrivals tourism revenues employment income + + + - + + + government expenditure government revenue public deficit + - - + + + population + + + - + + R R B B B B B B + R early warning system vegetative burning blocks climate change + - - <early warning system> + canal blocking - peatland conservation phasing out drainage-based agriculture - peatland vegetation + - <peatland conservation> <canal blocking> polyculture farming+ <peatland vegetation> ++ + forest cover mineral land use peat land use land swap + + - + - - + land productivity (mineral) fertilizers and pesticides + + + + - +
  7. 7. Main messages § Economic indicators for tropical peatland restoration should be crafted as integrated notably in the information they convey. § The information in the outcome indicators associated with peatland restoration should reflect the effects of proposed and implemented policy interventions, means of implementation, and their integration.
  8. 8. Thank you!