Forests are vital to human society, the global economy and the planet. They capture carbon dioxide from the atmosphere, provide livelihoods for more than 1 billion people, yield essential natural resources - food, water, wood products and medicines - and nurture biodiversity. 

Forests’ capacity to absorb vast amounts of carbon makes them crucial to mitigating climate change. But prevailing models for extracting value from forest land are rapidly destroying forests just when we need them most to stabilise global emission rates. Keeping global temperature increases below 2°C degrees depends on finding viable ways to protect, restore and sustain the world’s forests and deploying them on a huge scale. That’s the urgent background to SYSTEMIQ’s forest projects in Indonesia.

 

Unstainable Land Use Indonesia

  • The land use, land-use change and forestry (LULUCF) sector is responsible for about 17 percent of global human-induced GHG emissions¹
  • Indonesia has the highest deforestation rate in the world surpassing Brazil in 2012
  • Approximately 50% of Indonesian deforestation has happened on extreme carbon rich peatlands in the past 8 years. A quarter of Indonesia’s forest (31m hectare) has been destroyed in 25 years
  • The carbon in the Indonesian peatlands alone is equivalent to 20% of the remaining global 'carbon budget'

 

The time is right for Indonesia to recreate its land use model and to realise the true economic value of allowing its precious ecosystem to thrive SYSTEMIQ’s two forest projects in Indonesia support government efforts to find alternative models of land use that can protect, restore and sustain the peat swamp forests of Borneo, Sumatra and Papua. 

We assess ongoing and potential projects and support them with the development of business plans, link to funding sources and in creating an enabling environment for new business models to emerge.

While giving full value to the natural ecosystem, these alternatives need to be economically viable and able to replicate at scale, both elsewhere in Indonesia and in forests and peatlands around the world. We envisage successful models rapidly becoming a ‘bankable asset class’ for regular investors.  

 
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¹ number is ranging depending on sources