Conserving Forests in Asia

About Katingan Mentaya Project (Indonesia)

The Katingan Mentaya Project conserves 149,800 hectares of tropical peat swamp forest in Central Kalimantan, Indonesia from being converted into timber plantations. Peat soils are a vital carbon sink, storing at least twice as much carbon as trees. They face degradation across the world as they are cleared, drained, and burned for use in industrial activities. The project protects the habitats of many vulnerable and endangered species, including one of the last remaining populations of Bornean orangutan in the world, whose population has declined over 95% in the last century. And, at the same time, the project supports sustainable development of local communities, offering improved livelihoods and funding for community projects such as installing improved sanitation infrastructure.

Further reading:

Katingan Mentaya Project Website

2023 Article on this Project by McKinsey 

Project impact summary

7.5 million tCO₂ avoided per year

Without the project up to 447 million tCO₂ would be released into the atmosphere over 60 years – an annual average of 7.5 million tCO₂. The project avoids this through protecting a large area of peatland from being deforested, drained, and converted for industrial use.

Protecting endangered animals such as the Bornean orangutan

The area is home to 5 critically endangered, 8 endangered, and 31 vulnerable species, and the project is therefore vital for wildlife conservation. This includes 5-10% of the total remaining global population of the Bornean orangutan, which has faced huge decline due to deforestation for timber logging and palm oil plantations.

Protecting one of the most endangered ecosystems in the world

Peatlands are a hugely important ecosystem and 15% of the world’s peatlands have already been lost to being drained or burnt for industrial land conversion. Not only are they a vital carbon sink and habitat for vulnerable species, they also help to regulate water flows, reduce the severity of floods, and reduce the risk of fires during dry periods.

Improved sanitation infrastructure and financial management workshops for women

Community projects are co-developed with local people. So far this has included improving sanitation and healthcare infrastructure, training on sustainable farming methods such as coconut sugar production, running financial management workshops for women, providing access to microfinance for over 150 local people per year.

Project Quality Assessment

Durability:  Carbon stored for decades

The project has a robust lifetime and commitment of 60 years, with the option to renew this.

In any forest conservation project there is reversal risk due to the naturally short-term way that trees store carbon, and risk factors such as land use change and tree disease.

Particular risks in this project are a continuing high incidence of forest fires in the area and the increasing and strengthening of damaging extreme weather events in the area, which are not accounted for in the project’s risk assessment.

Additionality: Good levels of additionality driven by reliance on carbon financing

There is always an additionality risk with forest conservation projects due to the difficult in determining an accurate baseline. However, this project has a relatively low additionality risk. That’s because it’s very likely that the area would otherwise have been deforested and drained – this is a profitable and government-backed activity. In Indonesia 11% of tropical forest was lost between 2002-21, and plantations on ex-peatlands in Borneo are estimated to be 18-22% of total emissions. Further, there is no alternative funding available so the sale of carbon credits is necessary; local conservation legislation is ineffective; and there is a credible baseline in place.

Measurement: Some risk due to project type, but adequate measures are taken to mitigate uncertainties

The difficulty in determining an accurate baseline scenario in forest conservation projects means that there is an increased risk of overestimating impact, and therefore over-crediting. The project mitigates this risk through applying a conservative baseline scenario which is calculated using both data and sampling from comparative locations and best-practice industry guidelines such as the use of a ‘peat depletion time’ to accurately calculate the carbon stored in peat. Confidence in the accuracy of impact measurements is increased by regular ongoing monitoring using both remote sensing technology and onsite data gathering e.g. of the water table depth of the peatland.

Risk mitigation: 10% buffer and introduction of alternative income streams reduce risk

When issuing carbon credits an amount is contributed to a buffer pool to account for underperformance due to the high risk of reversal in forestry projects. This project has a 10% buffer pool contribution, which is inline with Verra requirements. However, given the strong risks of forest fire and extreme weather here, this may not be sufficient to fully mitigate risk. The risk of illegal deforestation and land clearance are reduced by project activities which introduce alternative livelihoods to the community. Over 500 people are directly employed in the project, and former illegal loggers are also trained on sustainable farming methods, with over 300 sustainably-run coconut sugar businesses now operating in the project area.

Co-benefits: Best-in-class co-benefits span biodiversity, animals and community

Peatlands are in global decline due to land conversion, and are a biodiverse habitat. The Katingan Peatlands are home to many endangered animal species, including 5-10% of the total remaining population of Bornean orangutan, so the project is vital for biodiversity and wildlife conservation. Carbon credit funding supports community projects such as the installation of improved sanitation and healthcare facilities, providing healthcare provisions such as baby-weighing scales, running financial management workshops for local women, and providing access to microfinance for over 150 people per year.

About Keo Seima Wildlife Sanctuary (Cambodia)

Keo Seima Wildlife Sanctuary is home to more than 950 wild species, including 75 globally threatened species. It is also the ancestral home of the indigenous Bunong people, whose unique culture and beliefs are inseparable from the forest in which they live. The project plays a vital role in the preservation of the region’s important and vulnerable wildlife, including the world’s largest populations of the endangered Black-shanked Douc and Yellow-cheeked Crested Gibbon, as well as a nationally important population of Asian Elephant and many other species. At the same time, it supports the sustainable development of local communities, most notably through securing communities legal title to their traditional lands, and through the REDD+ Benefit Sharing Mechanism which provides significant funding to community-chosen and community-led development projects.

Further reading:

Everland Earth’s page on Keo Seima

Over 1.4m tCO₂ emissions reduced per year

As a large-scale forest protection project, Keo Seima will significantly reduce emissions. The area is under threat from accelerating forest clearance for agriculture, together with unsustainable resource extraction.

75 IUCN Red List Species protected and benefiting from reduced threats

Among the critically endangered animal species, the population of 11 key species have been monitored using line transects and the other endangered species tracked through regular patrols. The results show that the state of over 80% of the monitored species improved or matched on the trends set in 2010.

Over 3,600 people served in project-supported medical facilities

The villages are remote and access to healthcare and medicine is both difficult and often too expensive. The project has funded mobile health clinics in 5 indigenous communities.

Over 1,700 women with access to alternative livelihood opportunity

Focus on women’s empowerment through initiatives that provide them with new livelihoods and a sustainable income stream.

Project Quality Assessment

Durability: Carbon stored for decades

In any forest conservation project there is reversal risk due to the short-term nature of trees storing carbon and risk factors such as wildfires or changing land use. However, the project has a very robust 60 year lifetime, ensuring the forest will be protected from threats of logging and land conversion for agriculture, and that carbon stored safely for several decades. Project activities promoting the creation of alternative livelihoods, such as starting an eco-tourism project, and introducing sustainable farming practices also reduce the risk of reversal beyond the project’s lifetime.

Additionality: Good levels of additionality driven by reliance on carbon financing

There is always additionality risk with forest conservation projects due to the difficult in determining an accurate baseline. However, the project area is surrounded by an aggressive deforestation front and third-party analysis has verified reduced rates of deforestation within the project area compared to surrounding areas, demonstrating that activities are highly effective at preventing forest loss – especially when compared in ineffective policy interventions prior to the project. There is evidence that the project has received additional income from grants which reduces confidence in additionality. However, this is insufficient to cover project activities, demonstrating that the project is reliant on funding from the sale of carbon credits to prevent deforestation.

Measurement: Some risk due to project type, but adequate measures taken to mitigate counterfactual uncertainties

The difficulty in accurately assessing baseline predictions for avoided unplanned deforestation projects increases over-crediting risks. However, the project uses a conservative baseline which is consistent with Verra’s verified methodology for forest conservation projects and with third-party checks of actual forest loss during the project’s existence. Confidence in the accuracy of measurements is increased by rigorous ongoing monitoring using both remote sensing technology and onsite data collection.

Risk mitigation: Sufficient 10% buffer and introduction of alternative income streams significantly reduce reversal risk

A buffer is used when issuing carbon credits, due to the relatively high risk of reversal due to factors such as tree disease, wildfires, or changing land use. The project has a 10% risk buffer, which is in line with Verra requirements for a minimum 10% buffer contribution. Long-term risks of deforestation for land conversion risks are mitigated by project activities introducing alternative livelihoods and sustainable farming practices to the community. This includes building an eco-tourism camp, starting a community bamboo business, and training on sustainable rice and vegetable cultivation.

Co-benefits: Significant co-benefits span biodiversity, animal protection, and community

Keo Seima Wildlife Sanctuary is a vital conservation area, home to 75 threatened animal species, including Asian elephants. The project includes a world-class biodiversity monitoring program and rangers to prevent poaching. 80% of the monitored species have maintained or improved since the project began, and 20 new species have been identified in the area. Over 200 local people are directly employed in project activities, and over 1,000 others have improved income due to the creation of alternative livehoods, and the introduction of sustainable farming practices which increase production. Funding from carbon credits has supported community projects, including providing over 3,600 people in remote areas with access to healthcare and medicine through mobile health clinics.