Archives For indonesia conservation

As we enter ADM Capital Foundation’s second decade, we have launched a new website at ADMCF.org that reflects our narrowed focus on Asia’s environmental challenges.

Over the past ten years, we have worked with dozens of NGO partners to help support some of the region’s most marginalised children to better lives, we have pushed for action to reduce air pollution, to cut consumption of shark fin and protect our oceans, stem the wildlife trade, protect forests, build knowledge and action around China’s water crisis. We have worked to see that the appropriate research informs the right sort of change.

But this year represents a shift from our dual focus on children at risk and the environment to where we feel the need is greatest: environmental protection.

The two-decade shift of manufacturing to Asia amid lax local regulation and enforcement has come at unprecedented environmental cost. While we enjoy cheap goods, clothes in particular produced at unsustainably low prices, Asia shoulders the environmental burden of our excessive consumption. Global climate change, ocean acidification, the consequences of our excessive lifestyles, now affect us all.

Globally, we are living as though we have three planets in terms of resource consumption. We must find ways to live more sustainably, to accommodate a world population that is expected to reach 9 billion by 2050.

Philanthropy is not the only answer but it can support essential research, spread knowledge, seed ideas, push for thought change in consumers and action from governments, all of which is critical.

Yet only an estimated 2 to 3 percent of global philanthropy finds its way into addressing our urgent environmental challenges.

Thus, we felt ADMCF’s resources were best spent striving toward: cleaner air; improved and secure water sources; forest protection balanced with low carbon rural development; better managed fisheries and sustainable consumption of our ocean resources; improved regulation and enforcement to protect endangered wildlife.

At the same time, we are exploring sustainable business models, a circular economy and the finance that must underpin all.

Collaboration remains the key. None of our work can be done alone, without the energy of our many incredible NGO partners, our funding partners, our pro bono supporters.

The challenges we face are substantial but in our short ten years we can see systemic change, we can see that it is possible to generate lasting impact.

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IMG_1285ADM Capital and ADM Capital Foundation (ADMCF) have received a grant from Toronto-based Convergence to support the design of the Tropical Landscapes Finance Facility (TLFF) and Tropical Landscapes Bond (TLB), which are being developed in partnership with UNEP, ICRAF, and BNP Paribas.

The TLFF will provide long-term financing for projects that improve access to rural electricity, reduce greenhouse gas emissions, and enhance smallholder farmers’ livelihoods in Indonesia.

The country is globally the fourth-biggest emitter of carbon, much of this from deforestation. Extreme poverty and a chronic education gap affect many rural areas. An estimated 13,000 villages (out of 75,000) have no power. Hoping to remedy the shortfall in electricity, the government’s current 5-year plan calls for 35 GW of new power of which 8GW is alternative energy.

An estimated USD 16 bn is required to fund this, much of which should be long-term debt yet current delivery platforms could not come close to making such amounts available.

The TLFF will have a strong focus on social and environmental outcomes and the emphasis  on debt ensures local promoters and developers have an aligned interest in project success.

The TLFF structure is such that once projects mature and produce cashflows, they will be parceled up and sold to the private sector in the form of bonds, which will be pass through notes and will only have recourse to the underlying projects.

The design grant is part of Convergence’s efforts to surface the next generation of blended finance models and foster market-wide learning to drive the field forward. Convergence will award a minimum of CAD 10M in design grants over the next five years, and this initial funding is provided by the Government of Canada.

ADM Capital/ADMCF will use the Convergence proof of concept funding to help finalize the overall design of the TLFF, which will also include a grant fund, and structure initial projects that will be funded by the TLFF.

Convergence is an independent institution that helps public, philanthropic, and private investors find and connect with each other to co-invest in blended finance deals in emerging markets. It offers grant funding for practitioners to design innovative blended finance instruments that address a key development need but would otherwise be too risky or complex to pursue.

To share what grantees have learned through their design process, Convergence, in partnership with the Bertha Centre for Social Innovation and Entrepreneurship at the University of Cape Town’s Graduate School of Business, will create learning briefs that outline key decisions and outcomes from the design processes to ensure practitioners considering similar instruments have access to design best practices.

The full press release can be found here.

 

Jodi Rowley, an amphibian researcher from the Australian Museum, writes in her most recent blog about a newly discovered species of frog that gives birth to tadpoles rather than laying eggs.

Found first in Northern Sulawesi’s Nantu Forest, Limnonectes larvaepartus, whose name reflects the species’ unique nature (Larvaepartus: to give birth to larvae), expands the scientific community’s understanding of frogs, Jodi writes.

 

Limnonectes larvaepartus, a new species of frog discovered  in Nantu

Limnonectes larvaepartus, a new species of frog discovered in Nantu

“Most of the roughly 7,000 species of frog lay eggs in water, where they are fertilized externally, hatch into tadpoles, and start feeding, then gradually develop into frogs. A small percentage of frogs are known to buck the trend and supply their young energy to grow and develop (generally in the form of yolk). Only a dozen or so have internal fertilization, but these frogs lay fertilized eggs, or tiny frogs. Until this week, we knew of no frog, anywhere in the world, that gave birth to tadpoles.”

Beyond being extraordinary in its reproduction, the tiny frog sports fangs in its lower jaw.

The species was recently described and officially named and that paper can be found here.

Jodi, the engine behind the amphibian discovery trip to Indonesia’s Nantu, with colleagues has looked at the breeding mode of Limnonectes larvaepartus in more detail and they have described its tadpole for the first time here.

She says the reproductive novelty of this particular frog emphasizes just how little we know about amphibians overall and how much remains to be discovered from the imperiled forests of Southeast Asia.

Both Jodi and YANI, which administers and protects the Nantu Forest, have long been recipients of grants from ADMCF.

Nantu, 500 square kilometers of virgin rainforest, is located in the heart of the Wallacea region in Gorontalo Province, northern Sulawesi, Indonesia. Wallacea is the wildlife transition zone between Asia and Australia and replete with endemic species.

IMG_1284

 

One of the world’s most important and largest-remaining stretches of protected forests could be lost within the month to mining, logging and plantation companies that want to reclassify the land.

If a new spatial planning goes ahead, the governor and parliament of Aceh province in Indonesia would hand over forest vital to an estimated 4 million people as watershed protection and critical to food security and livelihoods.

The forest being proposed for re-zoning is part of the protected Leuser ecosystem, which is one of the richest expanses of tropical rain forest  in Southeast Asia and a global repository of biodiversity.

Action NOW (sign the petition with link below) is urgent ahead of expected approval by the Aceh provincial parliament, where it   significant support.  Following that vote, the plan must then be approved by national government in Jakarta and a Forestry Ministry spokesman there has been quoted in press reports saying it could be approved within the month.

Approval of the plan would open up the forest for mining, paper and palm oil plantations the forest.The new spatial plan would grant currently protected land for mining, logging and palm oil. The plan would also approve an extensive new network of roads that would run through protected forests.

Leuser is located on the northern tip of Sumatra and is home to critically endangered orangutans, rhinos, and elephants. Aceh has the most forest cover of any province in Sumatra, which lost 36 percent of its forests in the past 20 years.

East Asia Minerals, the (TSX:EAS) Toronto-based mining company, with silver, gold and copper operations in Aceh and Sulawesi has said it is working closely with government officials in Aceh to obtain reclassification of  1.6 million hectares from “protected forest” to “production forest.”

In a statement, the company hailed the progress toward the rezoning as “positive news for mineral extraction in the area.”

The Aceh government banned the granting of new logging permits six years ago to protect the forest, but a new administration since last year is in favor of allowing logging again – hence the change in focus from protection of forests to allowing their commercial use.

Please click this link and sign the Change.org petition.

Eating Asia’s Forests

Lisa Genasci —  October 20, 2012 — 4 Comments

View of palm oil plantation in Cigudeg, Bogor

palm oil plantation

Most of us don’t realize that many of the products we use, the foods we eat are causing deforestation on a massive scale in Southeast Asia and are devastating to our planet’s biodiversity.

The culprit is palm oil, which is a key ingredient in many common foods, shampoos, soap and pet products, lubricants, pesticides and paints.  It even helps fuel our cars.

Palm oil has become a silent part of our everyday lives and accounts for 30 percent of world vegetable oil. And that’s how it’s usually identified on the list of ingredients – as vegetable oil so we often don’t even know what we are using.

Our consumption of the versatile lipid is soaring.  Demand is predicted to more than double by 2030 and to triple by 2050. China is the biggest consumer of palm oil, importing 18 per cent of global supply.

In Indonesia and Malaysia, forests are being cleared at an alarming rate, estimated at 2 million hectares a year, wiping out endangered species such as the orangutan, the black sun bear, the Sumatran tiger and many others.  The two countries produce 90 percent of the world’s palm oil.

A new study by Stanford and Yale researchers estimates that 75 percent of deforestation in Indonesia was directly attributable to land use changes, from forestry to plantation. The study was released this month and published in the journal Nature Climate Change

Indonesia already has 8 million hectares of oil palm plantations, but has plans for another four million by 2015 dedicated to biofuel production alone. In total, the country produced more than 23 million tonnes of biofuels last year and is setting aside 18 million hectares to produce much more.

Malaysia in 2011 produced 18.9 million tonnes of palm oil on nearly 5 million hectares and was the second largest producer of palm oil.

Beyond feeding our snack habit, another challenge for forests is that governments are pushing to increase the use of biofuel, which ironically is seen as a quick fix to reduce greenhouse gas emissions. In the EU By 2020, 10 per cent of fuel will be biofuel, while China expects 15 per cent of its fuel to be grown in fields.

But in both Indonesia and Malaysia, in order to plant palm oil, often carbon-rich peatlands are being drained and then burned, releasing stored C02 into atmosphere already clogged with greenhouse gases from razing dry land forests. This represents possibly more carbon emissions than burning fossil fuels.

English: Deforestation and forest burning for ...

And not infrequently palm oil plantations are just an excuse for clearing forest because the profits associated with sales of tropical timber are substantial. In this case, companies seek concessions and access to land that is forested but don’t ever bother to plant palm oil.

We might think that forest and peat swamp loss in Southeast Asia sounds bad but it’s far away so why do we care?

We care for many reasons.  But if we are thinking purely about self-interest, the effects of forest loss can be seen globally in changing climate patterns and erratic weather.

Forest cutting is responsible for 17 per cent of global carbon emissions, meaning this is the third largest source of greenhouse gas emissions and equal to emissions for the entire global transport sector. It is also comparable to the total annual CO2 emissions of the US or China, according to the UK Eliasch Review, “Climate Change, Financing Global Forests”.

If the international community does nothing to reduce deforestation, modeling for the Eliasch Review estimates that the global economic cost of climate change alone caused by deforestation could reach $1 trillion a year by 2100.

Beyond the effects of climate change from deforestation, we look to forests as sources of vital biodiversity.

Estimates are that nearly half of the world’s species of plants, animals and microorganisms will be destroyed or severely threatened over the next 25 years because of rainforest deforestation. As rainforest species disappear, so do many possible cures for disease.

At least 120 prescription drugs sold worldwide come from plant-derived sources. While 25% of Western pharmaceuticals are derived from rainforest ingredients, less than 1% of tropical trees and plants have been tested by scientists. We just don’t know enough about the significance of forests to sit back while they disappear.

Locally, the consequences of deforestation on such massive scale are even more immediate.  Forests help regulate regional rainfall, offer defense from floods, maintain soils and their moisture, and generally offer ecosystem services crucial for maintaining life and livelihoods. Globally, an estimated 1.6 billion people depend on forests for their welfare and livelihoods to one degree or another.

So is it worth it to eat that biscuit, that chocolate, choose a shampoo that contains palm oil and how do we know if it’s not even labeled?

The rule is that if the label shows the saturated fat content is close to 50%, there is a good chance that the vegetable oil will in fact be palm oil. Among those items that should be immediately suspect are biscuits, processed foods, chocolates and snacks.

Other key tip-offs that a food item might contain palm oil listed among ingredients are cocoa butter equivalent (CBE), cocoa butter substitute (CBS), palm olein and palm stearine.

When looking at ingredients in non-food products such as soaps and detergents, those that contain palm oil include: elaeis guineensis, sodium lauryl sulphate, cetyl alcohol, stearic acid, isopropyl and other palmitates, steareth-2, steareth-20 and fatty alcohol sulphates.

Next time you reach for a snack, paint a wall or fill up your car, do your best to make sure palm oil isn’t an ingredient or at least that the brand claims to use oil from sustainable sources.

There are many issues around what makes palm oil sustainable as well as the industry body, the Round Table on Sustainable Palm Oil (RSPO) itself, but this is at least a step in the right direction.

Forest Impact Bonds:

Lisa Genasci —  January 4, 2012 — Leave a comment

We have been thinking a lot about Social Impact bonds and how the concept might apply to conservation finance, which is something about which we ponder a great deal.

Why not a Forest Impact Bond, issued against promised aid streams from sovereign development banks wanting to mitigate climate change and/or promote forest conservation?

These could work in circumstances where communities are key to protecting High Conservation Value forest.

FIBs would be focused on impact-driven community development (schools, livelihoods, health, education) but linked also to real conservation outcomes.

Time is slipping as we try to establish the best way to protect ourselves at scale from climate change, manage and protect our forests for future generations.

The multiple challenges around forest conservation is something we’ve written about previously in this blog here and here.

In essence, the problem is how to compensate governments and landholders for the huge rewards they reap cutting trees from native tropical forests; how to balance development with conservation.

Since 57 percent of the world’s forests are located in developing countries, it is hard to make the economic argument that these areas should not be developed for the benefit of the national population.  Indeed, timber revenues represent the major, sometimes only, export commodity of a country.

The Commission on Climate and Tropical Forests has estimated  that 17 percent of greenhouse gas emissions – an amount equal to the transportation sector – are from deforestation.

At the same time, the scale of financing required to halve deforestation will reach US$30 billion annually by 2020, the U.S.-based commission estimated in the same report.

Only turning to the global capital markets will provide sufficient funding to meet the challenge deforestation presents today.  That strategy could include the use of bonds, which would allow the desperately needed investment at scale.

Communities and Livelihoods the Key to Conservation

Key to this discussion is that not only do governments and landholders need to be compensated for not chopping forests for timber, but local livelihoods are also often linked to forests.

Nearly 90 percent of the 1.2 billion people living in extreme poverty worldwide depend on forests, which provide them with building materials, food, coffee, cocoa, medicinal plants and income from other sources.

Without access to the forests not only do many of these people lose livelihoods but they also may lose their crops to droughts or floods as climates change with deforestation.

Thus communities living in and around forested areas are key to their protection.

Still, even with access to forests, local populations who face the immediate need of supporting their families often don’t recognize the value of conserving forests for the longer term because they cannot meet their immediate needs for food, housing, clothing and education, among others.

Thus, local communities need both education on the value of long-term forest conservation to their own lives (livelihoods, water etc) and help establishing alternative and sustainable income sources.

At the same time, battling to defeat poverty, poor nations argue they cannot be expected to forfeit income from economic activities that lead to deforestation, particularly since there are global  benefits from developing world forest services – carbon, water etc.

They have argued collectively that if global powers want to preserve the rainforests and their natural services provided then those must be paid for.


Rainforest Bonds Not a New Conversation

Indeed, for many years now there has been talk of rainforest bonds, which would help pay the large upfront capital expenditure required to invest in development, livelihoods, conservation to maintain the forests.

Under conventional thought, either forest carbon revenue or other sources of income such those generated by sustainable timber, agriculture or ecosystem service markets (water, biodiversity for example,) would repay investors.

But the conversation around REDD carbon has stalled with regulatory uncertainty. Additionally, in Asia certainly, we are a long way from any scalable ecosystem markets, while the significant upfront investment needed to promote agriculture as an alternative or to build local livelihoods to protect forests is just not available philanthropically.

And that’s just it…the bond conversation has gone on for years with significant players like the Prince’s Rainforest Trust and others eventually pulling back given the difficulties in identifying revenue streams that would work.

Turning to Forest Impact Bonds

So why not step back entirely from the conversation around how to make forests pay and look instead to the large sums promised by sovereign development banks at Copenhagen (US$4.5 billion) and other aid that has yet to find a home for want of knowledge of how to invest those funds with surety and with impact.

And that’s not surprising. Over the past two decades, substantial funds have flooded into Indonesian conservation  (usually to secure national parks or protect wildlife and its habitat) without corresponding transformational change. Over the same period, deforestation has only accelerated, fueled by burgeoning consumption, population explosion and massive urbanization.

So the problem remains, how to ensure that limited funding for conservation is spent with measurable and significant impact? How to balance development and conservation and raise the funds from global capital markets to pay for both?

Indeed, we must increase the availability of performance-linked finance to protect forests for local communities and local governments, in order to maintain them for global biodiversity and as carbon sinks.

In 2007, a similar discussion emerged in the UK around improving social outcomes and reducing uncertainty of funding for social services.

Shortly thereafter, London-based Social Finance introduced the concept of social impact bonds, which target funds to specific projects with measurable results.

If the identified targets are reached, the UK government saves on social programs and those savings are used to repay bond investors, in certain cases with interest. If targets are not reached, bond investors lose out as they would in any junk bond investment.

Turning to the U.S, in last year’s  budget speech, President Obama announced that he had set aside US$100 million for social impact bonds and at the same time two Boston-based companies have recently been established to apply the UK social impact bond concept to the U.S. context.

Why could this innovative approach to generating social impact in the UK and the U.S. not work also to protect forests in Indonesia, targeting communities and livelihoods but at the same time generating extra and measurable impact in conservation?

Given the argument above, and the lack of current appetite for REDD+ and other forms of eco-securitisation backed by forest assets or credits, might we then apply the social impact bond example to community development initiatives in a country like Indonesia?

In this scenario, international government funds, funds from multi-laterals with an interest in combating climate change and conserving  forests for future generations pool funds in an SPV that are then allocated to community development initiatives with specific parameters and measures of impact.

The key would be to persuade the local government to join what would essentially be billed as a development initiative but with additional conservation benefits.

The SPV funds would be available to repay investors in the event that the community development programs, livelihood initiatives, the conservation targets achieve desired results. In this way, the pooled funds are used only if they have been effective and only after impact has been achieved and quantified.

Country funds would likely have to be established separately, with their own fund administrators (local country officials?)  and project monitors.

An initial pilot would likely include just one country – Indonesia perhaps – and one specific target: perhaps livelihoods and education around several conservation areas.

For in-country implementing partners we could draw on local NGOs to support conservation (research and protection) and identify appropriate targets. Microfinance institutions could support business initiatives where appropriate and rural development organizations would help build agricultural businesses that local communities in Indonesia want to generate income.

Legal organisations would need to be employed to help sort out land-titling to establish a legal basis to land ownership. Education NGOs could be employed to boost local knowledge around conservation, while healthcare providers could support rural health development.

This would then be associated by local communities, along with improved education, for example, with conservation of their local forests.

So rather than trying to pry an uncertain financial return out of forest services or REDD+ (although if these markets develop in the future, certainly these could be added to SPV funds) we are trying  to achieve only effective allocation of government/multilateral resources  and measurable impact.

At the same time, however, there could be a return on investor depending on the effectiveness of the programs., while a tranche structure with different risk/return profiles could be used to simultaneously appeal to both groups.

The difference with the UK Social Impact Bond, of course, would be the potential for shared savings. Although it would be important to have local governments as key participants, it is unlikely their own development investments would make this worthwhile.

Who would buy Forest Impact Bonds?

There is growing interest on the part of institutional investors in markets where there are environmental and social as well as financial returns or where there are at least screens for negative impact.

According to Eurosif, total SRI assets under management increased dramatically from €2.7 trillion to €5 trillion, as of December 31, 2009. This represents spectacular growth of about 87% since 2007.

The sense is that when environmental social and governance issues start to affect share price or impact bottom lines boardrooms will take note.

Increasingly, SRI is a mainstream criterion in equity analysis and several stock exchanges have launched tradable indices that track SRI companies or ESG alongside financial performance.  And ratings agencies are emerging to rank companies on their ESG performance.

At the same time, part of the consideration around forests is that they have long carried appeal to institutional investors.

According to an article in The Banker from 2007, more than US$30 billion globally is invested in forest assets, although mostly through funds and largely in the US.

These investments generally offer competitive returns with low or negative correlation to traditional asset classes making them a counter-cyclical hedge.

In Summary…

  • A FIB is a contract with the public sector in which it commits to pay for improved environmental and social outcomes
  • On the back of this contract, investment is raised from investors motivated perhaps not only by commercial but also by environmental and social returns.
  • This investment is used to pay for a range of social outcomes such as poverty alleviation of local communities, improved health and education, all tied to and contingent on conservation of an area of high-conservation value local forest
  • The financial returns investors receive are dependent on the degree to which outcomes improve i.e, they may receive part or all of the initial investment back, and in some cases additional financial returns.
  • A FIB shifts emphasis from paying for inputs and outputs to paying for impacts
  • In its purest form, a FIB has a risk profile more similar to an equity investment than a debt investment

Last week we spent some days plowing through one of the most important areas of tropical rainforest in Borneo,  central Kalimantan’s Sabangau, looking for Orangutans, gibbons, Langurs and other primates as well as learning about the ecology of the peatland habitat.

For two days we started at 4:30 am in the dark, wearing headlamps, looking for the elusive apes. Although boards (built on a former logging railway) run for some kilometers through the 45-hectare grid within which the researchers we were visiting spend most of their time, much of the forest walking was through deep peat swamp that occasionally reached mid-thigh! See the photo above of  intrepid ADM Capital partner Robert Appleby taking the measure of the peat’s depth!

The walk, more often a run, as over hours we chased to reach the spot where a gibbon grouping or orangutan had been spotted by the Dayak or foreign teams working the forest, was often a challenge but incredibly rewarding nonetheless.   Seeing the majestic creatures in the wild was truly breathtaking. The gibbon photo above was taken by the OuTrop crew.

We were visiting Oxford Primatologist Dr. Susan Cheyne who along with other senior wildlife conservationists leads a team of young researchers working out of an old logging camp situated in the designated Sabangau “Natural Laboratory” about an hour and  a half by road, boat and foot from Palangka Raya. The Laboratory sits within the 500,000 hectare Sabangau National Park, which actually is not yet officially a national park.

This year ADMCF has provided support to Dr. Cheyne through Oxford University’s Wildlife Conservation Unit (WildCRU), which also backs the conservation and research effort. Dr. Cheyne and her team monitor the distribution, population status, behaviour and ecology of the forest’s primates, carry out biodiversity and forestry research, and work with local partners to implement conservation solutions.

The team is sponsored in Indonesia by the Center for International Cooperation in Sustainable Management of Tropical Peatland (CIMTROP), which is responsible for conservation of the important 50,000 hectare peatland forest.

That involves mostly ranging and firefighting, although there is also an ongoing effort to dam the many canals built through the forest that were used to transport the illegal logs to the river and are now drying up the swamp. Estimates are that the peatland, as deep as  19 meters in some spots, is sinking with the lowered water table and this of course threatens the trees and amazing wildlife, which is just beginning to recover from logging.

Sabangau was turned over to conservation  in the late 1990s after Orangutan Tropical Peatland Project (OuTrop) research managed to document the incredible biodiversity of the forest and establish clear records of substantial populations of primates, clouded leopards and other endangered species.

Previously Sabangau was a logging concession, although luckily it was only selectively cut. More destructive though was the illegal logging that followed in the late 1990s – when the canals were cut through the swamp and more of the forest was chopped. Still, the research team has shown that surprisingly primates are returning to the peatland forest, which also has regenerated well.

Estimates are that the Sabangau previously hosted populations of about 14,000 orangutans and 40,000 gibbons and now numbers of each are at about half that amount, according to Dr. Cheyne.

Along with Dr. Cheyne, two other senior OuTrop primate researchers work from the Setia Alam camp: Simon Husson and Helen Morrogh-Bernard, who were among the first to identify the orangutan populations in  Sabangau and set up the camp with CIMTROP early last decade. OuTrop has been excellent at attracting paying volunteers and research interns to help survey the primates and biodiversity in the peat forest. Each individual seems to play a strong role in helping to build a portrait of the unique ecology of Sabangau. Certainly, more help is always needed for this important work, which is critical to inform conservation and indeed learn about the behavior of the animals.

To illustrate the importance, previous research establishing that the populations of apes lived in the forest was enough to persuade the Indonesian government that the area should be conservation forest. Now, new research is showing that adult male orangutans might need much larger range areas than previously believed, while gibbon family groupings perhaps also need more dispersal space in order to establish healthy populations.

The teams also believe that because food (flowers and fruits)  in the acidic peat swamps is not as plentiful as in regular tropical forest, apes may develop sophisticated mental maps of so-called “destination trees” and return to these in season to maximize their travel efficiency. The concern is that if these large feeding trees disappear so will the feeders.

Out of curiosity, we visited Block C of the Mega-Rice project. Which was indeed a sorry sight: So many kilometers of barren land subject to annual and devastating fires on the peatland where nothing now grows but scrub.

In the last days of the Soeharto era, Indonesia’s corrupt leader apparently handed logging concessions equal to about 1.4 million hectares to two sons and declared an ambitious plan to convert the Kalimantan peatland forest into rice padi, to be farmed by migrant workers from Java. The idea was to make Indonesia self-sustainable in rice production.

But the Project was a failure because acidic peatland was completely unsuitable for growing rice. Huge canals were built in the peat, ostensibly to control water-levels but instead drained the once-flooded swamps. Of course, the sons profited handsomely from the logging concessions, which many believe was the real motivation behind the Project.

In a major drought in 1997 the peat dried out entirely, caught fire and burned for months. This resulted in a smoke haze that covered much of south-east Asia and released huge amounts of carbon dioxide into the atmosphere. Burning forests in Indonesia are largely responsible for the country’s designation as the world’s third-largest emitter of greenhouse gases.

The former Mega-Rice area continues to burn annually during the dry season and is considered one of the world’s biggest environmental disasters. Luckily the Project was stopped before the Sabangau Forest itself was drained and cleared.