Palm Oil And Peat Training Module

Training module on

Palm Oil and Peat

Developed by Marcel Silvius

This training module on tropical peatlands

and palm oil was developed by Wetlands

International at the request of ProForest.

Most material in this presentation is under copyright of Wetlands

International

What are peatlands?• Location• Functions and values

What are peatlands?

Peatlands are wetlands where Peatlands are wetlands where waterlogging delays waterlogging delays decay,decay,

and dead plant materials form an organic soil: peat soil

Mineral Soil

River River

< 1m> 3m

Peat swamp forest

Organic matter

Most of the peatlands are located in the lowlands in the extensive floodplains between rivers of

Sumatra, Kalimantan and Papua

• Peat: organic matter accumulated over thousands of years• Lowland tropical forest peat bogs are dome-shaped • Peat is accumulated above ground water levels

The peat bog is rain water fed

Peatlands represent a key part of global biodiversity

As a result of different climatic and biogeographic conditions, a large diversity of peatland types exists in the world, including the tropical peat swamp forests of

South-east Asia (middle picture)

Peatlands around the world

• World wide 400 million haWorld wide 400 million ha• 3% of global land area; 40% of all wetlands3% of global land area; 40% of all wetlands• Present in all climate zones, in 126 countriesPresent in all climate zones, in 126 countries• South-east Asia has 6 % of global peatlandsSouth-east Asia has 6 % of global peatlands

Peat accumulates for thousands of years storing concentrated Carbon in thick layers

Peat from 2 meters depth

Most peatlands in lowlands of South-east Asia are about 5000 years old. Some can reach over 20m depth

Peatlands are 90% water• In natural un-drained conditions tropical peatland

soils contain 85% to 95% water and are poor in nutrients

• Indigenous plant species are adjusted to long-term inundation and have special adaptations to cope with poor peat soil conditions

Place in the water cycle

• Globally 10% of all fresh water is in peat

• Peatlands are the source areas of many rivers

Water management functions

• Important role in water storage and supply• Crucial for mitigation of droughts and floods

Peatlands and carbon• Globally peatlands store 2000 Giga ton (Gt) CO2 • Equivalent to 30% of terrestrial carbon

– 75% of all carbon in the atmosphere

– 90% of all carbon stored global plant biomass

– twice the carbon stored in forests

All over the world the peat based Carbon stores are threatened

• Annual global emissions from peatlands > 3 Gt CO2

–equivalent to 11% of global fossil fuel emissions

Peatlands store large amounts of carbon Peatland degradation leads to CO2 emissions which contribute to global warming

Peat soils• Peatland area in Indonesia:

• 21 millions ha • average carbon storage 1,600 ton C/ha• or totally 33.7 Giga ton Carbon • Equivalent to 123.5 Gt CO2

• Tropical peat forest soils may have over 1200 times more carbon stored than the natural forest above

Peat swamp forests are high biodiversity areas

Vegetation gradients• In the centre of the peat dome

where the peat is deepest, waterlogging most prolonged and denutrification most extreme trees may be stunted and thin. This forest is generally more poor in species. It is called “Pole or Padang forest”.

• Toward the edges of the dome, the peat is less deep and tree species diversity higher. Forest on shallow peats (<1 m) is called Mixed swamp forest. The forest is tall, tree crowns are wide, and some emergent trees may reach up to 50 and occasionally 60 meters height.

• Sometimes there is a gradient of peat swamp forest via mixed and freshwater swamp forest (on alluvial soils) towards river-edge vegetation. Natural gradients from mangrove forests to freshwater swamp forest and peat swamp forest have become very rare.

Peatland distribution in Indonesiab

1 Between 1987 to 2000 over 3 million ha, or 18% of the total peat area in Indonesia disappeared as a result of conversion and fires

Region Original size (ha)

Remaining (ha) 1

Protected (ha)

Sumatera 7,282,000 4,613,000 341,000

Kalimantan 4,413,000 3,531,000 257,000

Sulawesi 44,000 34,000 -

Maluku 48,000 42,000 1,000

Papua 8,910,000 8,753,000 1,882,000

Total 20,697,000 16,973,000 2,481,000

Importance of tropical peat swamp forests

• Water regulation

• Biological diversity

• Carbon storage (sinks & sequestration),

• Tourism & recreation

• Sustainable forestry, incl. NTFPs

• Peat products for local exploitation

e.g. Central Kalimantan:Total value US$950 / ha / year

– fish (70%), – Construction and fire wood( 23%), – rattan (1%), – wild animals (1%), – Other products, e.g.. Chewing gum and

medicinal products (5%)

Peatland area, carbon storage & distribution in Indonesia

•Sumatra: 7.2 mill ha

- 22.3 Gt C in 1990 - 18.8 Gt in 2002• Kalimantan: 5.8 mill ha

- 11.3 Gt C• Papua: 8 mill ha

- 3.6 Gt C• Total: 21 mill ha

- 33.7 Gt C

Peat formation in Central Kalimantan

• Peat formation started 26000 yr BC

• Initially sequestration 1.0 mm/yr

• Some periods had hardly any accumulation

• 3.5 m of peat accumulated in 2,500 years

• Peat and carbon storage decreased at end of early Holocene

• Accumulation over last 600 years is 2.22 mm/yr

Data from J. Rieley

All in the balance

Water

PlantsPeat

Peatland

The intense relationship between “plants”, “water”, and “peat” make peatlands vulnerable to a wide range of human interference.

Peatland issues• Deforestation• Drainage• Fires

Peat swamp forest deforestation

Peatland deforestation:

• since 2000: 1.5%/yr which is double the rate for non-peatlands

• currently 45% deforested

Peat forest conservation

• < 5% of total peatland area

Relative total vs PSF area decline Insular SE Asia

90.00

91.00

92.00

93.00

94.00

95.00

96.00

97.00

98.00

99.00

100.00

Year

Are

a re

mai

ning

sin

ce 1

999

Total forest decline

Peat forest decline

Preliminary results presented at UNFCCC CoP

Nairobi, 07-11-2006

(%)

Logging and drainage

• For logging (legal and illegal) of peat swamp forests often channels are dug to transport equipment and logs

• This results in drainage of the peat soil, causing increased emissions of CO2 from the below-the-ground carbon store

Logging and fire susceptibility

• Pristine forests are much less susceptible to fire

• Logging and drainage dramatically increase fire risk

• Earlier burned areas have very high fire risk

Impact of drainage of tropical peatlands

• Drainage to 1 meter = emission of 90 ton CO2/ha/yr

• When drained, peatlands become increasingly vulnerable to fires

Relation between CO2 emission and watertable depth

0

20

40

60

80

100

0 0.2 0.4 0.6 0.8 1average watertable depth (m)

CO

2 em

issi

on

(t /

ha

/ yr

) Tropics

Temperate

Boreal

Source: Alterra

Source: Wösten, Alterra

Background: why peatland drainage leads to CO2 emissions?

Intact peat: • water table near surface allows accumulation of organic matter (carbon sink)

ΔLClay / sand

Peat dome

Str

eam

ch

anne

l

Str

eam

ch

anne

l

Background: why does peatland drainage lead to CO2 emissions?

Drainage lowers water table and dries the peat

Background: why does peatland drainage lead to CO2 emissions?

When the water table is lowered and the peat dries, oxigen will react with the organic material and form Carbon

dioxide (CO2) emissions through:– decomposition (rotting) – fires

CO2

CO2

Background: why does peatland drainage lead to CO2 emissions?

• The peat soil will subside as a result of loss of water, compaction and loss of matter (through CO 2 emission).• The subsidence will only stop when the peat is ‘rewetted’. • Without rewetting the peat will disappear

Drainage SE Asian peat swamp areas

A total of about 13 million ha of SE Asian peat swamps have been drained

for agriculture and agro-forestry.

CO2 emissions from SE Asian peat fires

• Between 1997 and 2006 there were over 60,000 fires in peat swamp areas in 3 out of 10 years (1997, 1998, 2002)

• Most affected were deforested and drained peatlands

Tentative estimate of CO2 emissions from fires in Indonesia

0

2000

4000

6000

8000

10000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

C e

mis

sio

n f

rom

pe

at

fire

s

(CO

2, M

t/y

)

Minimum estimate(1.42 Gt/y average)

Maximum estimate(4.32 Gt/y average)

Adapted from data provided by Siegert and Page

Is loss of peat a problem?

Drainage SE Asian peat swamp areas

• Peat oxidation in SE Asia caused by drainage contributes around 632 MtCO2/yr to global green house gas emissions

• This is equivalent to the current global target under the Kyoto Protocol

Peat fires and climate change• Indonesian peat fires in

1997/1998 covered 1.5-2.2 million ha and emitted between 3000 Mt CO2 and 9000 Mt CO2 (Page et al., 2002)

• Carbon emission equivalent to 15-40% annual global emission of fossil fuels

• The 1997/98 fires had a direct impact on global atmospheric CO2 levels

310

320

330

340

350

360

370

1957 1962 1967 1972 1977 1982 1987 1992 1997 2002

Increase atmospheric CO2

CO2 emissions from SE Asian peat fires

• Tentative average annual CO2 emissions caused by peatland fires, assessed over a ten year period (between 1997 – 2006) is estimated between

- a minimal average of 1400 Mt CO2/y

to - a maximum average

4300 Mt CO2/y

The total emissions from drainage and fires in SE Asian peatlands amounts to a minimum of 2000 Mt CO2 per annum, which is around 8% of total global emissions from fossil fuels

Hotspots of CO2 emissions from drained peat Annual global emissions from peatlands > 3 Giga ton CO2

Equivalent to 11.5% of global fossil fuel emissions

With peat related emissions equivalent to 8% of global fossil fuel emissions, South-east Asia is the world’s main source area

of peat emissions

South-east Asian peatland emissions

6% of global peat area

71% of global peat emissions

0.1% of global land area

8% of global CO2 emissions

CO2 emissions from oxidation in drained peatlands

(fires excluded), by region(global total: 887 Mt/y; source: PEAT-CO2)

Indonesia (58%)Other SE Asia (13%)C. America (8%)N. America (5%)Africa (4%)S. Asia (4%)C. Europe (4%)W. Europe (3%)S. America (3%)E. Asia (3%)N.W. Europe (2%)C. Asia (1%)Russia (1%)Australia Pac.S. EuropeMiddle East

Peatland extent by region (global total: 381 Mha; source: PEAT CO2)

S.E. Asia (6% )C. America (1% )N. America (35% )Africa (1% )S. AsiaC. Europe (1% )W. Europe (1% )S. America (2% )E. Asia (2% )N.W. Europe (5% )C. Asia (1% )Russia (43% )Australia Pac.S. EuropeMiddle East

Indonesia

Malaysia

RussiaN America

SE Asia

Other issues related to peatland degradation, drainage and fires in South-east Asia

•Conversion & degradation•Pollution•Invasive species•Overexploitation•Climate change

Threats

Biodiversity loss

Poverty Climate Change

Land / Water Degradation

• Peatlands are the most important ecosystems in the world for carbon storage

• Tropical peatlands are most rapidly degrading and disappearing

Economics of 1997/98 peat fires in Indonesia

• 1,5 – 2,2 million ha peat swamp forest burned

• 1108 flights cancelled in Indonesia, Singapore & Malaysia

• Economic damage by smoke: > 1.4 billion US$

• Economic losses (tourism & timber) > 7 billion US$

• Large fires occur every year

Socio-economic impact of peatland fires on peopleIndonesian peatland fires of 1997/98:• 1,5 – 2,2 million ha peatswamp forest

burned • Hundred thousands of

hospitalisations and outpatient treatments

• Millions of working & school days lost

• Natural resource base, business and property loss (US$ 8.4 billion)

• Enhanced poverty: more over-exploitation

• Social & ethnic tensions

• Vicious cycle of environmental degradation & over-exploitation

Social impacts• 30% of children under 5 have

respiratory illnesses and stunted growth

• Poverty in peatland regions in Indonesia is 2-4 times higher then elsewhere in Indonesia

Other consequences

• Local people have no choice but to over-exploit remaining natural resources

• Poverty has caused social and ethnic tensions

• The vicious cycle of environmental degradation and over-exploitation affects the environmental, economic and food security of the poor

Smog and smoke

over SE-Asia

22 Oktober 1997

International tensions

© NASA TOMS

Malaysia in September 2005

Development of tropical peat soils in South-east Asia– Peat and palm oil

Palm oil can grow and produce well on peat

Currently about 20% to 25% of oil palm estates in South-east Asia are on peatland:

• Indonesia: about 25%• Malaysia: about 6%

• There is a major drive to expand palm oil, also in response to the international biofuel market

– Over 50% of new palm oil is planned on peat

– 60% of newly planned production estimated to be for bio-fuel

Other countries

14%

Indonesia

43%

Malaysia

43%

0

10,000

20,000

30,000

40,000

1995/96* 2000/01 2004/05 2005/06

Global palm oil production (1000 mt)

Sustainability issuePalm oil production on peat:

– annual peat emissions range between 50 - > 100 t CO2/ha

– Use as biofuel (at 3 to 6 tonnes palm oil production per ha/year) compensates only 9 to 18 t CO2/ha

– Combustion of palm oil from peat as a biofuel may thus result in 3-10 times more CO2 emissions than from use of fossil fuels

– This still excludes other potentially additional emissions from

• deforestation • fires• off-site drainage impacts

Criteria peat & and palm oilEssent, the largest Green Energy supplier to the public in the Netherlands established in 2007 an independent commission to look into the issue.

Conclusions:– No palm oil from

plantations on peat!

– In case of deforestation (within current RSPO criteria), a net reduction of greenhouse gas emissions should be proven.

Palm oil versus peat swamp forest

Malaysian Palm Oil Council: “A direct comparison of peat forest and oil palm plantations found slightly higher emissions from peat forests” (Corley 2007).

Possible causes for higher emissions for forests in Melling’s study: – Only soil emissions were measured, not the ecosystem carbon

balance– More vegetation biomass will have higher respiration rates and

thus more CO2 release from the living root system. – Among other potential contributing factors is the fact that the peat

swamp forest studied was degraded

Source: Global Oils & Fats Business Magazine, Vol 4. Issue 2. 2007

Management measures

that can help

to reduce impacts of

existing palm oil plantations on peatlands

Priority 1Optimising water levels: improve water management

Different kinds of dams can be used to manage water levels

Restore also hydrology in surrounding HCV forest areas

In the surroundings of the plantation or in conservation zones within the plantation, High Conservation Value forests may require management interventions, e.g.:

– Blockage of small channels; hydrological monitoring and management

– Guarding against illegal logging and poaching

– Fire prevention and control– Reforestation– Buffer zone development– Community engagement

and development

Utilisation of Blocked Canals

Ponds position vs blocking canals

To broker acceptance of water management structures and channel blocking by local communities, blocked channel areas may be used as fishponds

Priority 2 Fire prevention & fighting

Ensure adequate fire prevention and fire control, also in surrounding areas, including:

• awareness raising

• capacity building

Focus on local communities, authorities and plantation staff

Priority 3Socio-economic development

• As part of the Company’s Social Responsibility programme, small scale local community economic and other development initiatives (e.g. health care, schooling, etc) can be supported through micro-credits or grants.

• Sustainable palm oil development of communities can be supported

Priority 4 Re-greening degraded peatlands

• Where plantations on peat are abandoned, or in adjacent degraded peatlands, reforestation programmes can be implemented

• This may link to conservation buffer zones• Carbon credits (from carbon sequestration and avoided emissions

from degraded peatlands)• It will reduced fire risks for the plantations

• When reforesting peatlands:• Ensure hydrological restoration to (near) natural water patterns• Plant indigenous species, and/or fire resistant species

Priority 5 Nature Conservation

• Consider the potential of palm oil plantations as buffer zones for high conservation value forest areas

• Consider mutual benefits from:• Bio-diversity off sets• Hydrological management• Fire control• Development of infrastructure• Patrol against poaching and illegal logging

Legislation, policies, guidelines

Consider use of the Precautionary Principle

Large scale developments in peatlands should happen only after thorough research, social and environmental impact assessment, cost-benefit

analysis, and small scale pilot projects

Some general or basic guidelines to consider

Some general or basic guidelines to consider

Consider use of the Ecosystem approach

Recognise:Hydrological sensitivity

Ecological relationship with surrounding land Place in catchment/river basin

Potential impact on up- and down-stream areas

Some key regulations• Indonesia Presidential decree No 32/1990;

Land use planning regulation No 21/1992: Peatlands deeper than 3 meters are protected for their water storage functions

• Indonesia Policy of Soil Department: Shallow peats (0.5-1m) and Medium deep peats (1-2 m) are potentially suitable for agriculture

• Malaysian and Indonesian legislation regarding green belts

General RSPO principles

Principle 1: Commitment to transparency

Principle 2: Compliance with applicable laws and regulations

– Ensure also to be well acquainted with the National Implementation and Interpretation of the RSPO Principles and Criteria

Principle 3: Commitment to long-term economic and financial viability

Principle 4: Use of appropriate best practices by growers and millers

Principle 5: Environmental responsibility and conservation of natural resources and biodiversity

Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and mills

RSPO criteria most relevant to peat

Criterion 4.3: Practices minimise and control erosion and degradation of soils

Especially consider that:– Drainage of peat soils will lead to the chemical erosion of peat through

oxidation. This process can only be minimised and not controlled, unless through full hydrological restoration of the natural water levels and hydrology

– Exposure of the peat soil to direct sunlight will increase desiccation and oxidation

– Drainage of plantations may impact on up- and down-stream peatlands and other vulnerable soils such as acid sulphate soils.

– Maintenance of the water table at the RSPO recommended 50-75 cm (mean 60 cm) will result in 50 tonnes of CO2 emissions per ha per year within the plantation, but may result in even ,ore drainmage and CO2 emissions through off-site hydrological impacts

– Verification of proper water level management will require appropriate use of divers for continued – year round - water level management in different zones of the plantation, the location of which will depend on the hydrology of the plantation, its surroundings and its place in the water catchment.

– Water levels and subsidence rates should be continuously measured in permanent Research & Monitoring plots, and documented.

In addition to all the other RSPO criteria pay – in relation to the special characteristics and issues in peatlands - special consideration to the following:

RSPO criteria most relevant to peat

Criterion 4.4: Practices maintain the quality and availability of

surface and ground water.Especially consider that:

– Depending on the place in the water catchment there is a risk that palm oil plantations on peat as a result of the inevitable soil subsidence may end up with increased water logging which may render the plantation not viable in the long-term

– Water management planning should preferably include use of models that will help to predict long-term impact scenarios of soil and hydrology changes

– Over-drainage of surrounding peatlands may also result in increased droughts, i.e. in situations where peat dome drainage will result in diminished water supply in the dry season. This will also decrease options to maintain ater levels at the recommended height.

– Roads and other infrastructure in the plantation may impact on water levels, availability and quality. Mitigation of these risks will require the use of appropriate engineering structures (such as culverts)

RSPO criteria most relevant to peat

Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that

ensures optimal and sustained yield

Especially consider that:– Many peat soils are underlain by potential acid

sulphate soils. After the peat layer has over time disappeared as a result of drainage, the PAS soil may become exposed, resulting in significant acidification of the plantation and its surroundings, and significant loss of productivity

– Such PAS conditions need to be incorporated in maps (Soil maps are required under RSPO guidance under Criterion 4.3)

RSPO criteria most relevant to peat

Criterion 5.1 Aspects of plantation and mill management that have

environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are

made, implemented and monitored, to demonstrate continuous improvement.

Especially consider that: – In existing palm oil plantations on peat the most severe

negative environmental impacts will likely be related to: Deforestation, b. Drainage, c. Fire risks and d. the resulting high

emissions of green house gases.The emission of green house gases even under optimised

water management condition will render the produced palm oil an inappropriate product for generating green energy on European market, as biofuels under European condition need to result in at least in a reduction of 10 % green house gas emission.

The Netherlands (Cramer criteria) requires an emission reduction for electricity generation of 50-70% and for transport fuels at least 30%.

- Consider also options for collaboration between palm oil plantations and High Conservation Value Forest areas

RSPO criteria most relevant to peat

Criterion 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation

taken into account in management plans and operations

Especially consider that:

– The hydrological impact of drainage of the palm oil plantation can significantly affect high conservation value habitats up- and down-stream in the catchment as a result of the hydrological connections.

– Impacts can be obvious and direct, e.g. where drainage of surrounding peatland systems are directly effected, or can be difficult to measure and may take time over long periods but leading eventually to the degradation of high conservation value areas. Some of these impacts can only be clearly identified on basis of complex hydrological models

RSPO criteria most relevant to peat

Criterion 5.5:

Use of fire for waste disposal and for preparing land for replanting is avoided except in specific

situations, as identified in the ASEAN guidelines or other regional best practice.

Especially consider that:– Use of fire in palm oil plantations on peat soils will

pose exceptional fire risks to the drained peatlands in the plantation and its surroundings

– Use of fire in peatlands in terms of developing and managing the plantation will result in unacceptable levels of CO2 emissions.

RSPO criteria most relevant to peat

Criterion 5.6 Plans to reduce pollution and emissions,

including greenhouse gases, are developed, implemented and monitored

Especially consider that: – Any drainage of peat soils will inevitably lead to high

emissions of green house gases, especially CO2 – Drainage depth in existing palm oil plantations

should be minimised to reduce green house gas emissions. It should be understood that emissions from peat oxidation will in any case be 3 to 10 times higher than any possible offsets realised by use of palm oil as biofuel

– The RSPO guidance calls for a monitoring system to be put in place for significant pollutants that goes beyond national compliance.

RSPO criteria most relevant to peat

Criterion 7.1 A comprehensive and participatory independent social and

environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding

existing ones, and the results incorporated into planning, management and operations.

Especially consider that: – New plantations on peat should be avoided (see RSPO guidance

under Criterion 7.4)– RSPO guidance under 7.1. mentions that assessment of above and

below ground carbon storage is important but beyond the scope of an EIA. However, identification of presence, extent and depth of peat soils in the plantations and its immediate surroundings can be part of a rapid assessment, which will provide a useful and rapid indication of the carbon storage value and possible off-site impact scenarios.

– This can also have significant implications for long-term soil suitability (Criterion 7.2)

– It is recommended to use the precautionary principle when developing plantations on peat.

Other international criteria

• In addition to RSPO criteria the European Union is considering additional criteria, especially in relation to the use of palm oil as a biofuel.

• Use of biofuels in the EU is often subject to subsidies to enable the EU to comply with its targets under the Kyoto protocol.

• The EU has adopted special criteria under the Renewable Energy Directive that ensure that biomass used for generation of electricty will result in significantly decreased emissions of green house gases, taking account of emissions produced in any stage of the full production chain. Biomass from wetlands is explicitly excluded because of the carbon stocks.

• The Netherlands, the largest importer of palm oil in Europe, the so-called Cramer criteria have been adopted, which exclude biofuels produced on peat