Presented by Marcel J Silvius of the Global Green Growth Institute at the 3rd Asia-Pacific Rainforest Summit, on 23–25 April 2018 in Yogyakarta, Indonesia

1. Enabling Private Sector Engagement for
Business-based Peatlands Restoration & REDD+
Marcel J. Silvius
Country Representive
3rd Asia Pacific Rainforest Summit
23-25 April 2018, Yogyakarta,
Indonesia

2. Global Green Growth Institute at a Glance
27 member countries www.gggi.org
Water and
Sanitation
Energy Sustainable
Landscape
s
Green Cities
Designing replicable & scalable projects and programs across
Four Thematic Priorities
Mission: GGGI Partner countries are supported in their transition towards
a green growth model that simultaneously achieve poverty reduction,
social inclusion, environmental sustainability, and economic growth

3. Zone 2: Shallow peatlands zone
 Gelam wood, honey, oil, agroforestry business
 Aquaculture business
 Carbon credits business
Zone 3: Mineral soils around peatlands
 Sengon-wood business
 Rubber plantation business
 Agri-business
Zone 1: Deep peatlands forest zone
 Tengkawang (Illipe nut) business
 Carbon credits business
 Eco-tourism
Government
support
(Budgetary and
policy support)
Grants
(Donor assistance,
technical
assistance, etc.)
Equity investors
(impact investors,
developers,
corporates, etc.)
Concessional
debt
(international climate
funds, etc.)
Commercial
debt
(Banks, commercial
funds etc.)
Specialized
funding;
Carbon
finance, etc.
Business-based peatlands restoration requires
multiple business models and multiple financiers

4. Unproven Business
Models
 Innovative commodities
 Feasibility assessment and Cost-benefit analysis
Absence of
relevant Financial
mechanisms
 Access to finance for smallholder farmers
 Micro-credits
 Fiscal incentives for new business models
 Finance mechanisms (e.g. insurance, guarantees)
Operational
Challenges
 Governance over multi-jurisdictional landscapes
 Transparency
 Undeveloped trade chains
 Need for specialized equipment and capacity
for rewetted peatlands
Challenging Policy
Environment
 Lack of national & international carbon market & trade
 Improved license processes
 Simplified license change process
 Lower upfront costs for restoration licenses
 Lack of synchronized spatial and land use plans
 Clarity on land tenure and land-use rights
Legal challenges and
Lack of Institutional
Capacity
 Institutional capacity & legality to manage funds
 Sub-national institutional capacity BUMDES, KPH, KUD, etc.
 Local banks, microfinance companies
Barriers for Business models & Private sector engagement

5. Establish new
Business Models
 Develop PPP pilot programs for new business
models
 Incentivize investment in RnD
 Streamline corporate CSR initiatives
Create New Financial
Mechanisms
 Fiscal incentives for private investment in paludiculture
 Guaranteed minimum price for innovative commodities
 Mechanisms increasing creditworthiness of
smallholders
 micro-insurance
 risk sharing mechanisms like credit default guarantees
Streamline
Operations
 Land use/Resource data development &
harmonization
 Invest in smallholder commodity processing facilities
 Invest in supply chain infrastructure
 like cold-chain, logistics, etc.
Enabling Policies  Harmonize policies in and between sectors
 Establish a national carbon market
 Allow a capped international carbon trade
 Incentivize inclusive - community led - restoration
Enhance Legal
Structures and
Institutional
Capacity
 Transparent institutional governance
 Enable flow of funds to smallholders
 Farmer and fishermen cooperatives
Potential solutions: financial mechanisms and investments

6. Contact Us
Marcel Silvius
Country Representative
marcel.silvius@gggi.org
Benjamin Tular
Forest and Land Use Lead
benjamin.tular@gggi.org