Results of Workshop Organized by Oil Palm in Peatlands Best Management Practices and reducing Climate Impacts Suzana Mohkeri Global Environment Centre Results of Workshop Organized by

Objectives Stakeholders Share information on the nature and impacts of development of peatlands for palm oil plantation on biodiversity and climate change and implications for biofuel production Share experiences and best practices to minimize impacts and maintain production of oil palm plantation on peatlands Review options to rehabilitate degraded peatlands for production and conservation purposes Stakeholders 40 experts drawn from the following fields … peatland management peatland greenhouse gas emissions and climate change Oil Palm industry Biofuel Industry

Oil Palm in Peatlands Oil Palm is currently the main crop planted in peatlands in SE Asia. However development of oil palm plantations in peatlands needs more investment. Development of oil palm on peat also leads to a number of environmental and social impacts. Development of peatlands for oil palm is a significant reason for peatland deforestation and degradation in SE Asia.

Impacts of Oil Palm Development on Peat Peatlands are cleared of their natural forest cover and drained before cultivation of palm oil. Drainage dries out the peatlands and enhances flooding in adjacent areas. Once drained the peat soil rots down (releasing the stored carbon) and the ground subsides or sinks. In the dry season – drained peatlands become too dry and are vulnerable to fire.

Peat Fires in Plantations South Selangor - 1997 Riau province, Sumatera - 24th Jan 2005 PKPS , Batang Berjuntai - 2002

Working Groups Nature and options for reducing GHG Emission from drained Peat Best Management Practices (BMP) for palm oil / biofuel production on peat lands Options for restoration and utilization of degraded peatlands and associated biodiversity Discussion to develop : consensus on key issues identifying examples/case studies areas of future action

The meeting recognized that : Peatlands are the most extensive natural wetland ecosystems in SE Asia covering 30 million ha The peatlands are of global significance for carbon storage, climate regulation and biodiversity as well as great importance for local communities. Degradation of peatlands in the region has led to a loss of natural benefits as well as significant problems with fire, local and transboundary smoke haze as well as major GHG emissions

Oil Palm is preferably grown on mineral soils (cont’d) Oil Palm is one of the major crops in the region that contributes significantly to socio-economic development. Oil Palm is preferably grown on mineral soils in Malaysia about 10% of its 4.2 million ha planted area is currently on peat. Demand for vegetable oil for food, industry and biofuel is increasing worldwide and this is likely to act as a stimulant for further expansion of palm oil in the region. The RSPO Principals and Criteria for Sustainable Palm Oil form a key basis for promoting sustainable palm oil production

Findings 1: Best Management Practices (BMP) for palm oil / biofuel production on peatlands BMP for plantations on peatlands begins with proper site selection and Social and Environmental Impact assessment (SEIA). There is a need for wider assessment and distribution of knowledge on peatland types suitable or unsuitable for oil palm cultivation. Good implementation of effective water and fertilizer management and Integrated Pest Management are essential. There is a need for clear policy, planning and execution at the national, regional and local level on peatlands. There are still many challenges with regards to oil palm cultivation on peatlands and so further R&D and continuous training are important.

Findings 2: Nature and options for reducing GHG Emission from drained Peat Peatlands in SE Asia are globally important carbon stores, and undisturbed peat swamp forests remove more CO2 from the atmosphere than they release. Peatlands developed for oil palm plantations lose their stored carbon through GHG emissions with the rate of net loss depending on the peat type and management conditions. Options to reduce emissions from peatlands include: Improved water management and fire prevention in existing plantations, Conserving and restoring peat swamp forest, and Development of sustainable oil palm plantations in severely degraded peatlands which may not be possible to be restored to natural ecosystems

Cover Crops help maintain soil moisture and prevent erosion - but difficult to establish on peat !

Zero-Burning and maintenance of water tables in Oil Palm on Peat Shredding Holing Planting Along Windrowed Biomass Planting Along Drain Side

Integrated Pest Management …

Findings 3: Options for restoration and utilization of degraded peatlands and associated biodiversity. Clearing of land leads to loss of habitat and drainage canals cause habitat fragmentation and limits wildlife movement. Prioritization of sites and setting of objectives for restoration should be conducted at the landscape level prior to restoration efforts Restoration should consider the consider the peat basin as an ecological unit

Restoration of the Hydrological functions is a key first step for peatland restoration Restoration or rehabilitation projects can help reduce carbon emissions, conserve biodiversity and generate benefits for local communities It is extremely difficult to restore severely degraded peatlands to its original natural state. Peatland areas which are severely degraded and which may not be possible to be restored to natural ecosystems could be considered for conversion to palm oil plantations or other crops.

Degradation level of peat swamp forests 1 2 High Degradation Highest Degradation 4 3 Medium Degradation Low Degradation

Rehabilitation of degraded Peat area by CCFPI project - in Kalimantan Indonesia MAY 2006 June 2004

Workshop Recommendations Case studies and best practices for the management and restoration of peatlands should be documented and widely disseminated Improve efforts on existing plantations – implement RSPO P&C as well as other BMPs to enhance productivity and sustainability Identify options to fund the protection and rehabilitation of peatlands Undertake further R&D on specific areas Relevant experts should continue to work together and develop collaborative programmes with other stakeholders including local communities

Conclusion First attempt to have dialogue and develop a common view on palm oil and peat conservation. There is an urgent need to assess the status of degraded peatlands in South East Asia, level of degradation and management options. On 22 November 2007, the RSPO General Assembly adopted a revised Guidance for RSPO P&C which recommended avoiding development of palm oil plantations on peatland more than 2 m deep.

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