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

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

Research has focussed on (but not limited

to) Central Kalimantan

With Palangka Raya University, various District and Provincial Government agencies, BOSF, KPH. Kapuas

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

Research in Kalimantan - published

Suwarno, A, L Hein, E Sumarga, 2015. Who Benefits from Ecosystem

Services? A Case Study for Central Kalimantan, Indonesia.

Environmental management, 1-14.

Sumarga E, L Hein, 2015. 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, 2015. Governance, Decentralisation and

Deforestation: The Case of Central Kalimantan Province, Indonesia.

Quarterly Journal of International Agriculture 54, 1: 77-101

Sumarga, E L Hein, B Edens, A Suwarno, 2015. Mapping monetary

values of ecosystem services in support of developing ecosystem

accounts. Ecosystem Services 12, 71-83

Sumarga, E., L. Hein, 2014. Mapping Ecosystem Services for Land Use

Planning, the Case of Central Kalimantan. Environmental management,

1-14, 2014.

Ecosystem services – physical units

Ecosystem services: monetary units

Scenario analysis

CBA of 3 scenarios

Hydrology also included (with Deltares)

EMRP Block A and B: 490,000 ha, of which 62% peat

The future ? (Hydrological modelling by Deltares)

Costs and benefits Oil palm production† Jelutung production Carbon

sequestration‡

Orangutan

habitat

Total NPV

(€

million)

Scenario Period Physical

flow (Tg

FFB/year)

NPV (€

million)

Physical

flow (Tg

latex/year)

NPV (€

million)

Physical

flow (Tg

C/year)

NPV (€

million)

Thousand

ha

‘OP’ 2011 4.5

(mineral)

3.8 (peat)

1,863

(mineral)

811 (peat)

0 0 0.37

(mineral)

-4.52

(peat)

359

(mineral)

-4,424

(peat)

0 -1,391

After 25

years

4.5

(mineral)

3.0 (peat)

1,863

(mineral)

669 (peat)

0 0 0.37

(mineral)

-4.52

(peat)

359

(mineral)

-4,424

(peat)

0 -1,533

After 50

years

4.5

(mineral)

2.6 (peat)

1,863

(mineral)

536 (peat)

0 0 0.37

(mineral)

-4.52

(peat)

359

(mineral)

-4,424

(peat)

0 -1,666

After

100

years

4.5

(mineral)

1.5 (peat)

1,863

(mineral)

276 (peat)

0 0 0.37

(mineral)

-4.52

(peat)

359

(mineral)

-4,424

(peat)

0 -1,926

‘MIX’ 2011 4.5

(mineral)

0.1 (peat)

1,863

(mineral)

6.4 (peat)

0.4 606 0.37

(mineral)

0.36

(peat)

359

(mineral)

349

(peat)

84 3,183

After 25

years

4.5

(mineral)

0.007

(peat)

1,863

(mineral)

1.1 (peat)

0.4 606 0.37

(mineral)

0.36

(peat)

359

(mineral)

349

(peat)

84 3,178

After 50

years

4.5

(mineral)

0 (peat)

1,863

(mineral)

0 (peat)

0.4 606 0.37

(mineral)

0.36

(peat)

359

(mineral)

349

(peat)

84 3,177

After

100

years

4.5

(mineral)

0 (peat)

1,863

(mineral)

0 (peat)

0.4 606 0.37

(mineral)

0.36

(peat)

359

(mineral)

349

(peat)

84 3,177

Not

included: fire

and

associated

health costs

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

Thank you

References

Suwarno, A, L Hein, E Sumarga, 2015. Who Benefits from Ecosystem Services? A Case Study for Central

Kalimantan, Indonesia. Environmental management, 1-14.

Sumarga E, L Hein, 2015. 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, 2015. Governance, Decentralisation and Deforestation: The Case of

Central Kalimantan Province, Indonesia. Quarterly Journal of International Agriculture 54, 1: 77-101

Sumarga, E L Hein, B Edens, A Suwarno, 2015. Mapping monetary values of ecosystem services in

support of developing ecosystem accounts. Ecosystem Services 12, 71-83

Sumarga, E., L. Hein, 2014. Mapping Ecosystem Services for Land Use Planning, the Case of Central

Kalimantan. Environmental management, 1-14, 2014.

Plus submitted studies and work in preparation