How to Make Investments in Land Rehabilitation Economically Viable

The report evaluates the economic viability of restoring peatlands in Central Kalimantan and mangroves in Belitung, Indonesia. It argues that land rehabilitation is most effective when implemented as a package of interventions—such as combining canal blocking, land-use monitoring, and fire suppression for peatlands, or pairing mangrove planting with ecotourism—rather than as isolated measures. For peatlands, the highest societal net benefit (USD 4.136 billion by 2100) is achieved through a combined approach, primarily driven by avoided carbon emissions and fire damages. For mangroves, rehabilitation is deemed economically viable only when linked to additional revenue streams like ecotourism, which provides sustainable livelihoods and prevents land conversion for tin mining. The analysis emphasizes that local community income is critical for long-term success, as without alternative revenue (e.g., carbon payments or tourism), communities may return to environmentally damaging activities.

• A combined package of peatland interventions—blocking canals, revegetating, monitoring land use, and improving fire suppression—yields the highest cumulative net benefit for society, totaling USD 4.136 million by 2100. These gains are primarily derived from avoided carbon emissions and the mitigation of fire-related impacts.
• For peatlands, blocking canals is effective for raising the water table, but land-use monitoring is essential to prevent ongoing deforestation and reduce emissions from peat decomposition. Fire suppression alone reduces damages but cannot stop further peatland degradation.
• Mangrove rehabilitation in Belitung is only economically viable if it is coupled with an additional revenue source, such as ecotourism. This income is necessary to prevent the conversion of mangrove forests into tin mines.
• Ecotourism in the Belitung mangrove area can generate sustainable wages of up to USD 1,600 per capita per year and creates more employment opportunities than tin mining.
• Local stewardship is critical for mangrove recovery after extreme events, such as tsunamis. Community recognition of the ecosystem's value can prevent a return to mining after a shock, increasing long-term societal net benefits by USD 6 million compared to ecotourism without stewardship.
• Nature-based infrastructure (NBI) for peatland restoration is potentially more cost-effective than grey alternatives. Restoring peatlands avoids 3,951 t of emissions at a cost of USD 36,600 per t CO2e, which is significantly cheaper than the estimated USD 4.13 million per t CO2e for other strategies.
• The economic viability of peatland restoration depends on the inclusion of externalities. While conventional financial indicators (excluding emissions and fire costs) often show negative NPVs, the societal NPV for all policies ranges from USD 11 to USD 46 million.

APA

Bassi, A. M., Bechauf, R., & Cutler, E. (2022). How to Make Investments in Land Rehabilitation Economically Viable. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-06/savi-peatland-mangroves-indonesia.pdf

Chicago

Bassi, Andrea M., Ronja Bechauf, and Emma Cutler. How to Make Investments in Land Rehabilitation Economically Viable. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-06/savi-peatland-mangroves-indonesia.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Bechauf |first2=Ronja |last3=Cutler |first3=Emma |title=How to Make Investments in Land Rehabilitation Economically Viable |publisher=International Institute for Sustainable Development |date=June 2022 |url=https://www.iisd.org/system/files/2022-06/savi-peatland-mangroves-indonesia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2022how, author = {Bassi, Andrea M. and Bechauf, Ronja and Cutler, Emma}, title = {{How to Make Investments in Land Rehabilitation Economically Viable}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jun, url = {https://www.iisd.org/system/files/2022-06/savi-peatland-mangroves-indonesia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }