East Kalimantan Environmentally Sustainable Development Strategy

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The sector’s 57 MtCO2e of net emissions in 2010 make it the province’s largest source of greenhouse
gas emissions (GHG). Oil palm plantations require large tracks of land; in East Kalimantan this
land has largely come from its forests and peatland areas as they provide some additional timber
revenue but more importantly offer fewer land-tenure complications. Communicating, negotiating,
and accommodating communities on land for palm oil concessions is a long and sometimes costly
process. To the contrary, there is far fewer migration into intact forests and peatlands, and thus fewer
land rights challenges. Consequently, palm oil cultivators say that the fastest route to an operating
palm oil plantation is get a license to clear forested land. But it is precisely this expansion into forest
and peatlands that results in the sector’s very high emissions.
The majority of palm oil’s emissions come from plantations opened on peatland. Peatlands
have acidic water-logged soils, which in a dry state are 60 percent carbon in the form of organic matter
that has accumulated over thousands of years. When peat soils are drained for oil palm cultivation, they
are aerated and begin to oxidize and decompose. The slow but steady decomposition of peatlands is
estimated to result in emissions of 17 MtCO2e in 2030, while the more rapid oxidation of peat carbon
through fires is estimated to account for 26 MtCO2e per year on average.
Palm oil concessions on peatlands in Nunukan and Tana Tidung
DRAFT
Exhibit 12
The second major source of emissions related to the palm oil industry is deforestation
that occurs during the conversion of forested areas into plantations. As conversion of
(at least partly) forested areas is expected to continue through 2030, annual emissions of 22.4
MtCO2e from deforestation will likewise remain. Large companies primarily use mechanical
techniques for land clearing and land preparation; however, many smallholders still use slash and
burn techniques, which lead to significant emissions as well.