Presented by Sonny Mumbunan, Scientist, Research Center for Climate Change, University of Indonesia, at "Online Workshop Series:Exploring Criteria and Indicators for Tropical Peatland Restoration", on 2 Sep 2020. This presentation offered key insights into the financial aspects of peatland restoration efforts. Some important questions include – how to generate the funds needed for carrying out restoration? How to devise a plan such that the benefits of restoration are distributed equitably.

1. Economic Indicators for Peatland Restoration
(Session 2)
Sonny Mumbunan
Research Center for Climate Change, University of Indonesia; World
Resources Institute (WRI) Indonesia

2. Criteria considerations for economic indicators
Policy relevance. Addressing key peat restoration issues
encountered by national and sub-national governments,
and stakeholders.
Integration. Facilitating different elements to be
integrated (such as among expected economic outcomes,
means of implementation like financing, and peat policy
interventions).
Analytical soundness. Being informed by latest science.
Measurability. Data for indicators is available, cost-
effective, and with integrity.

3. Outcome indicators in peat provinces
Riau Province South Sumatra Province
Provincial Mid-term Development Planning (RPJMD),
2019-2024
Economic growth (aggregate and sectoral), capital formation,
employment, inflation, poverty, per capita expenditure,
investment, balance of payment, farmer’s terms of trade,
(income) inequality,
… alongside human development, life expectancy,
… environmental quality, land cover, …

4. Reflections on outcome indicators
§ How and to what extent peat restoration (as policy
intervention) contribute to achieving the targets in these
outcome indicators?
§ Do information in the indicators capture and reflect
both synergies and trade-offs in the presence of policy
intervention(s) for peatland restoration?
§ Viewed altogether, are e.g. paludiculture commodities
more competitive than those of timber and/or palm oil in
terms of “peat restoring’’ AND “welfare enhancing’’? Can
these relations be traced in information within the
indicators?

5. Means of implementation: financing
The indicators capture and reflect information (hopefully
measurable) in terms of …
§ Domestic mobilization of resources (e.g. fiscal
transfers, non-state expenditures)
§ Result Based Payments associated with peatland
restoration including non-carbon benefits from e.g.
bilateral partnerships, UNFCCC-Green Climate Fund
§ Public, private and blended finance in polycentric
governance setting (cross-scale: international,
national, sub-national; cross-actors: different
stakeholders with varying preferences, priorities)

6. Bringing them together
Integrating policy
interventions for peatland
restoration, outcome
indicators, means of
implementation
(financing) in one breath
agriculture land, palm
oil and timber
(mineral and peat)
water table
depth
water
drainage
peat
decomposition
peatland
emissions
+
natural
peat fires
-
-
-
land productivity
(peat)
agriculture production
(palm oil and timber)
+
+
man-made
peat fires
+
+
+ecosystem
integrity+
-
-
human
health
labor
productivity
gdp
flood and
drought risk
-
-
tourism
arrivals
tourism
revenues
employment
income
+
+
+
-
+
+
+
government
expenditure
government
revenue
public
deficit
+
-
-
+
+
+
population
+
+
+
-
+
+
R
R
B
B
B
B
B
B
+
R
early warning
system
vegetative
burning blocks
climate
change +
-
-
<early warning
system>
+
canal blocking
-
peatland
conservation
phasing out
drainage-based
agriculture
-
peatland vegetation
+
-
<peatland
conservation>
<canal blocking>
polyculture
farming+
<peatland
vegetation>
++ +
forest
cover
mineral
land use
peat land
use
land swap
+
+
-
+
-
-
+
land productivity
(mineral)
fertilizers and
pesticides
+
+
+
+
-
+

7. Main messages
§ Economic indicators for tropical peatland restoration
should be crafted as integrated notably in the
information they convey.
§ The information in the outcome indicators
associated with peatland restoration should reflect the
effects of proposed and implemented policy
interventions, means of implementation, and their
integration.

8. Thank you!