Technical Workshop on

Minimizing Impacts of Palm Oil and Biofuel Production in Se Asia

On Peatlands, Biodiversity and Climate Change

31 October – 1 November 2007, Kuala Lumpur

Summary Statement

The Workshop on Minimizing Impacts of Palm oil and Biofuel Production in SE Asia on Peatlands,Biodiversity and Climate Change was held on 31 October – 1 November 2007 in Kuala Lumpur. It was organized by Global Environment Centre, Wetlands International, Global Carbon Project, BP and the ASEAN Centre for Biodiversity with support from the Asia Pacific Network on Global Change Research (APN). It was held in association with the Malaysian Palm Oil Association (MPOA). It was attended by more than 40 experts on peatland, climate change, oil palm and biofuel from seven countries.

The Workshop Objectives were to:

1. 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.
2. Share experiences and best practices to minimize impacts and maintain production of oil palm plantation on peatlands.

3.   Review options to rehabilitate degraded peatlands for production and conservation purposes

Fifteen technical presentations were made and three working group sessions were held on: the nature and options for reducing Greenhouse Gas (GHG) Emission from drained Peat; Best Management Practices (BMP) for palm oil/biofuel production on peatlands;  and  options for restoration and utilisation of degraded peatlands and associated biodiversity.

The meeting recognized that:

• Peatlands are the most extensive natural wetland ecosystems in Se Asia  covering 30 million ha
• 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 one of the major crops in the region that contributes significantly to socio-economic development.
• Oil palm oil is preferably grown on mineral soils – however  in Malaysiaabout 10% of the 4.2 million ha planted area is currently on peat
• Demand for vegetable oil for food, industrial and biofuel is increasing worldwide and that 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

The workshop had the following Specific Findings:

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 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.

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 fertiliser 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.

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.
• It is extremely difficult to restore severely degraded peatlands to its original natural state.
• 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
• 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. 

The Workshop Recommended:

• Case studies and best practices for the management and restoration of peatlands should be documented and made widely available
• Efforts should be further improved as soon as possible for existing plantations on peatlands to implement RSPO P&C as well as other best management practices to help enhance productivity, ensure sustainability and minimize any impacts on biodiversity and climate change.
• Options for carbon financing and other new mechanisms to fund the protection and rehabilitation of peatlands should be developed further.
• Resources should be allocated to undertake further R&D and to assess and monitor the role of peatlands in GHG emission/carbon storage and to guide ecological restoration of peatlands, enhancement of carbon storage as well as sustainable management of plantations in peatland areas.
• Oil palm, peatland and environmental experts as well as local communities and other stakeholders should continue to work together to develop collaborative programmes to promote sustainable use of peatlands.