Green Peatland Economy PSAA

The Indonesian Environmental Fund (IEF) is requesting a grant of USD 886,719 from the Green Climate Fund (GCF) to prepare a full funding proposal for the Green Peatland Economy (GPE) project. The GPE project aims to transition Indonesia's peatlands from drainage-based, high-emission land use to zero-drainage, low-emission models that enhance community resilience and preserve ecosystems. The PPF will fund nine key activities over 13 months, including feasibility studies, gender and social inclusion analyses, market assessments for 'peatland-friendly' commodities, and the development of sustainable financial instruments. The project focuses on five Peatland Hydrological Units (PHUs) across Riau, Central Kalimantan, and South Sumatra provinces.

• The project seeks to transition Indonesia's peatlands from drainage-based systems to a 'Green Peatland Economy' (GPE) model characterized by zero-drainage, low-emission management and climate-resilient communities.
• Indonesian peatlands are a critical global climate driver, storing between 30–700 tons of carbon per hectare per meter of depth, with total estimated carbon content between 13.6–40.5 Gigatonnes.
• Peatland decomposition and fires are the primary drivers of Indonesia's land-use emissions, contributing approximately 400 million tonnes of CO2eq annually.
• The PPF will support the development of a full Funding Proposal through nine specific activities, including a Feasibility Study, GEDSI Analysis, Market Assessment, and an Environmental and Social Management Framework.
• The project targets five Peatland Hydrological Units (PHUs) located in three Indonesian provinces: Riau, Central Kalimantan, and South Sumatra.
• A key component of the GPE model is the development of 'paludiculture'—the production of high-value, peatland-friendly commodities in wet conditions to ensure economic viability for local communities.
• The project intends to establish innovative financial mechanisms, including a GPE Facility within the IEF, and explore instruments such as green bonds, Green sukuk, and carbon credits.
• The total cost for project preparation is USD 1,105,719, with a grant request of USD 886,719 from the GCF and in-kind co-financing from the IEF (USD 58,000) and FAO (USD 161,000).
• The implementation of the PPF is scheduled for 13 months, with the final Funding Proposal package expected to be submitted to the GCF within the first 9 months.

APA

Green Climate Fund (2026). Green Peatland Economy PSAA. https://www.greenclimate.fund/sites/default/files/document/ppf110-ief-indonesia.pdf

Chicago

Green Climate Fund. Green Peatland Economy PSAA. 2026. https://www.greenclimate.fund/sites/default/files/document/ppf110-ief-indonesia.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Green Peatland Economy PSAA |date=6 February 2026 |url=https://www.greenclimate.fund/sites/default/files/document/ppf110-ief-indonesia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2026green, author = {{Green Climate Fund}}, title = {{Green Peatland Economy PSAA}}, institution = {Green Climate Fund}, year = {2026}, month = feb, url = {https://www.greenclimate.fund/sites/default/files/document/ppf110-ief-indonesia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }