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Identifying Where REDD+ Financially Out-Competes Oil Palm in Floodplain Landscapes Using a Fine-Scale Approach

Author

Listed:
  • Nicola K Abram
  • Douglas C MacMillan
  • Panteleimon Xofis
  • Marc Ancrenaz
  • Joseph Tzanopoulos
  • Robert Ong
  • Benoit Goossens
  • Lian Pin Koh
  • Christian Del Valle
  • Lucy Peter
  • Alexandra C Morel
  • Isabelle Lackman
  • Robin Chung
  • Harjinder Kler
  • Laurentius Ambu
  • William Baya
  • Andrew T Knight

Abstract

Reducing Emissions from Deforestation and forest Degradation (REDD+) aims to avoid forest conversion to alternative land-uses through financial incentives. Oil-palm has high opportunity costs, which according to current literature questions the financial competitiveness of REDD+ in tropical lowlands. To understand this more, we undertook regional fine-scale and coarse-scale analyses (through carbon mapping and economic modelling) to assess the financial viability of REDD+ in safeguarding unprotected forest (30,173 ha) in the Lower Kinabatangan floodplain in Malaysian Borneo. Results estimate 4.7 million metric tons of carbon (MgC) in unprotected forest, with 64% allocated for oil-palm cultivations. Through fine-scale mapping and carbon accounting, we demonstrated that REDD+ can outcompete oil-palm in regions with low suitability, with low carbon prices and low carbon stock. In areas with medium oil-palm suitability, REDD+ could outcompete oil palm in areas with: very high carbon and lower carbon price; medium carbon price and average carbon stock; or, low carbon stock and high carbon price. Areas with high oil palm suitability, REDD+ could only outcompete with higher carbon price and higher carbon stock. In the coarse-scale model, oil-palm outcompeted REDD+ in all cases. For the fine-scale models at the landscape level, low carbon offset prices (US $3 MgCO2e) would enable REDD+ to outcompete oil-palm in 55% of the unprotected forests requiring US $27 million to secure these areas for 25 years. Higher carbon offset price (US $30 MgCO2e) would increase the competitiveness of REDD+ within the landscape but would still only capture between 69%-74% of the unprotected forest, requiring US $380–416 million in carbon financing. REDD+ has been identified as a strategy to mitigate climate change by many countries (including Malaysia). Although REDD+ in certain scenarios cannot outcompete oil palm, this research contributes to the global REDD+ debate by: highlighting REDD+ competitiveness in tropical floodplain landscapes; and, providing a robust approach for identifying and targeting limited REDD+ funds.

Suggested Citation

  • Nicola K Abram & Douglas C MacMillan & Panteleimon Xofis & Marc Ancrenaz & Joseph Tzanopoulos & Robert Ong & Benoit Goossens & Lian Pin Koh & Christian Del Valle & Lucy Peter & Alexandra C Morel & Isa, 2016. "Identifying Where REDD+ Financially Out-Competes Oil Palm in Floodplain Landscapes Using a Fine-Scale Approach," PLOS ONE, Public Library of Science, vol. 11(6), pages 1-23, June.
    • Handle: RePEc:plo:pone00:0156481
    DOI: 10.1371/journal.pone.0156481
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    References listed on IDEAS

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    1. Ranjan, Ram, 2021. "Land use decisions under REDD+ incentives when warming temperatures affect crop productivity and forest biomass growth rates," Land Use Policy, Elsevier, vol. 108(C).
    2. Cadman, Tim & Sarker, Tapan & Muttaqin, Zahrul & Nurfatriani, Fitri & Salminah, Mimi & Maraseni, Tek, 2019. "The role of fiscal instruments in encouraging the private sector and smallholders to reduce emissions from deforestation and forest degradation: Evidence from Indonesia," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.

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