Published daily by the Lowy Institute

The carbon sinks of Southeast Asia are in trouble

Global demand for palm oil and paper is threatening a fragile peatland ecosystem. International cooperation is needed now.

Firefighters try to extinguish a peatland fire in Ogan Ilir, South Sumatra, 12 September 2023 (Al Zulkifli/AFP via Getty Images)
Firefighters try to extinguish a peatland fire in Ogan Ilir, South Sumatra, 12 September 2023 (Al Zulkifli/AFP via Getty Images)
Published 18 Jun 2024 

Southeast Asia contains about 40 per cent of the world’s tropical peatlands. These wetland ecosystems, comprised of centuries-old, partially decomposed organic matter, play a crucial role in regulating the Earth’s climate by storing vast amounts of carbon. However, their vulnerability to environmental changes poses a serious threat.

Over the last three decades, Southeast Asia’s peatlands have undergone alarming degradation. In Sumatra, Kalimantan, and Peninsular Malaysia, which encompass the majority of the region’s peatlands, peat swamp forest cover has shrunk dramatically. Boasting pristine forests across 76 per cent of the area in 1990, by 2015, this ratio had plunged to a mere 29 per cent, with a scant 6 per cent remaining untouched.

The 2015 haze crisis – in which Southeast Asia chocked under a thick blanket of wildfire smoke caused by annual burning of land for paper and palm oil production – is a stark reminder of the devastating consequences of mismanagement of the region’s peatlands. Massive commercial land activities and drought conditions ignited fires across more than 2.6 million hectares, generating 1.6 gigatonnes of carbon dioxide, matching the annual emissions of Germany and France combined. This environmental catastrophe not only disrupted air travel and economic activity but also, according to studies, contributed to more than 100,000 premature deaths across the region.

Indonesia’s remarkable progress in peatland restoration exemplifies the power of collaboration.

Peatland degradation transcends national borders, posing a significant threat to global well-being. These vital carbon sinks, when degraded, will become “carbon bombs“ – releasing vast quantities of greenhouse gases, and disrupting the delicate balance of our planet. This disruption manifests as rising sea levels inundating coastlines, intensified droughts parching fertile lands, and widespread famines jeopardising regional stability.

National efforts to address peatland degradation, such as those implemented in Indonesia, Malaysia, and Thailand, are commendable. Indonesia’s remarkable progress in peatland restoration exemplifies the power of collaboration. The Indonesian government formed the Peatland Restoration Agency (BRG) in 2016, a body tasked with preventing land fires, particularly those on peatlands. The BRG spearheads ambitious efforts to restore more than 2.6 million hectares of fire-ravaged forests and peatlands. In 2018, with Norwegian government funding, the BRG developed a comprehensive peatland restoration model in seven provinces – Jambi, Riau, South Sumatra, Central Kalimantan, South Kalimantan, West Kalimantan, and Papua – to drive effective restoration efforts across the nation.

Tree planting as part of Community-Based Fire Prevention and Peatland Restoration Phase 2 in Kayu Ara Permai Village, Siak, Indonesia (Perdana Putra/CIFOR-ICRAF/Flickr)
Planting as part of Community-Based Fire Prevention and Peatland Restoration Phase 2 in Kayu Ara Permai Village, Siak, Indonesia (Perdana Putra/CIFOR-ICRAF/Flickr)

However, these initiatives face limitations due to the complex interplay of global and local factors. Peatland conversion is primarily driven by international demand for commodities such as palm oil and pulpwood, which national policies alone cannot effectively regulate. Furthermore, climate change exacerbates peatland degradation. A coordinated global approach is essential to mitigate this large-scale environmental threat. A critical next step lies in establishing multinational coordination. This framework should be anchored by jointly developed, legally binding policies promoting sustainable peatland management practices throughout Southeast Asia.

Recognising the urgency of sustainable peatland management, the Association of Southeast Asian Nations (ASEAN) implemented a Peatland Management Strategy (APMS), initially covering 2006 to 2020 and now extended to 2030. This comprehensive framework guides long-term peatland protection and sustainable use across the region. It empowers member states to develop national action plans and landscape management strategies tailored to their specific needs. However, it suffers from limitations due to its voluntary nature. The APMS lacks a robust enforcement mechanism. This absence of consequences for non-compliance weakens its ability to effectively promote sustainable peatland management practices.

For decades, a persistent challenge has plagued international efforts to address peatland degradation, namely the legitimacy gap. This refers to a critical disconnect between the ambitious goals established by regional and global environmental cooperation frameworks and the ability to achieve them. These partnerships, though well-intentioned, often lack the legitimacy required to ensure effective implementation.

Resolving the peatland crisis is an urgent environmental need and a symbolic test of humanity’s ability to unite across borders.

The root of this problem lies in two key shortcomings. First, the absence of binding commitments from member states. Unlike treaties with legally enforceable obligations, these frameworks rely on voluntary participation. This lack of compulsion weakens accountability, as countries can prioritise short-term economic gains over long-term environmental sustainability.

Second, the absence of a strong governing body further undermines legitimacy. Without a central authority to oversee enforcement and hold members accountable, there’s little to deter backsliding or ensure all participants contribute fairly. This lack of a unified voice also weakens the ability of these partnerships to advocate for change on a global stage.

How can stronger international cooperation be enhanced to ensure the future of these vital ecosystems?

A legally binding agreement between Southeast Asian nations – a united front for peatland conservation. This agreement would be a game changer, outlining clear goals, national action plans, and robust monitoring systems.

Financial institutions and donor countries can become powerful allies. By offering grants, low-interest loans, or even debt relief tied to achieving specific conservation targets, they can incentivise nations to embrace strong peatland management policies.

The agreement already exists, but what if it had a dedicated guardian? Enter the ASEAN Peatland Management Authority (APMA). This body would become the central hub, overseeing implementation, offering technical assistance, and fostering knowledge exchange.

Independent monitoring is crucial. A transparent system with independent oversight that utilises satellite data, on-the-ground teams, and public reporting should be established. This ensures countries stay on track and identifies areas needing extra attention.

Public awareness campaigns are the megaphones for change. By educating people about the critical role of peatlands, a powerful public constituency for peatland protection can be created, putting pressure on governments to prioritise peatland health.

The private sector, particularly palm oil producers, can be powerful allies in this fight. Collaboration can lead to sustainable sourcing practices, peatland restoration initiatives, and robust certification programs. It’s about fostering responsible business practices that benefit both the environment and the bottom line.

Resolving the peatland crisis is an urgent environmental need and a symbolic test of humanity’s ability to unite across borders. The haze blanketing Southeast Asia is a stark reminder that environmental challenges transcend national boundaries. Only through cohesive cooperation can these fires be extinguished to ensure a sustainable future for all.




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