Peatland Restoration and Sustainable Finance Feasibility Study – The Nature Conservancy
Regions: Jambi and Central Kalimantan, Indonesia
Partner: The Nature Conservancy (TNC)
Timeline: 2023–2024
Overview:
This project aimed to assess the feasibility of sustainable financing for peatland restoration in Indonesia, with a focus on integrating nature-based solutions, local economic viability, and carbon revenue potential. The study was commissioned by TNC as part of their broader landscape strategy to protect high-carbon ecosystems in collaboration with government and private sector actors.
Scope of Work:
PlanB led the assessment with a multidisciplinary team, covering:
- Hydrological and ecological assessment of degraded peatlands and surrounding land uses.
- Community profiling and land tenure diagnostics, including customary land claims, agricultural livelihoods, and village-level governance.
- Financial modeling to evaluate restoration costs and potential revenue streams, particularly from carbon crediting under Verra VM0036 and other methodologies.
- Policy and institutional landscape analysis, identifying barriers and enablers for large-scale implementation.
- Engagement with local and national stakeholders, including peat restoration agencies (BRGM), subnational governments, and private landowners.
Key Outputs:
- Spatial prioritization maps identifying candidate restoration zones aligned with community willingness and biophysical suitability.
- A restoration investment prospectus outlining blended finance pathways, potential credit buyers, and scalable business models.
- Recommendations for TNC’s program design, including integration with Indonesia’s SRN registry and voluntary carbon market access.
Impact:
The feasibility study laid the groundwork for designing a scalable peatland restoration program that balances climate, biodiversity, and community benefits. It helped inform TNC’s engagement with philanthropic and impact investors and their internal planning on landscape-based financing strategies.
