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

Nicola K Abram1,2,3,4,5, Douglas C MacMillan4, Panteleimon Xofis6

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Summary
This summary is machine-generated.

Financial incentives through Reducing Emissions from Deforestation and forest Degradation (REDD+) can compete with oil-palm in tropical lowlands. Fine-scale analysis shows REDD+ viability in safeguarding forests, especially in areas with lower oil-palm suitability and varying carbon prices.

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Area of Science:

  • Environmental Economics
  • Climate Change Mitigation
  • Forestry and Conservation Science

Background:

  • Reducing Emissions from Deforestation and forest Degradation (REDD+) offers financial incentives to prevent forest conversion.
  • High opportunity costs of oil-palm cultivation in tropical lowlands challenge REDD+ financial competitiveness.
  • Understanding REDD+ viability in diverse landscapes is crucial for effective climate change mitigation strategies.

Purpose of the Study:

  • To assess the financial viability of REDD+ in safeguarding unprotected forests in the Lower Kinabatangan floodplain, Malaysian Borneo.
  • To compare the economic competitiveness of REDD+ against oil-palm expansion using fine-scale and coarse-scale analyses.
  • To identify conditions under which REDD+ can effectively outcompete oil-palm in tropical floodplain landscapes.

Main Methods:

  • Regional fine-scale and coarse-scale analyses integrating carbon mapping and economic modeling.
  • Detailed carbon stock assessment and accounting for unprotected forest areas.
  • Economic modeling to evaluate REDD+ financial competitiveness against oil-palm at varying carbon prices and suitability levels.

Main Results:

  • Unprotected forests in the study area hold an estimated 4.7 million metric tons of carbon, with 64% earmarked for oil-palm.
  • Fine-scale analysis indicates REDD+ can outcompete oil-palm in areas with low suitability, low carbon prices, and low carbon stocks.
  • REDD+ competitiveness against oil-palm varies with suitability, carbon stock, and carbon prices; coarse-scale models showed oil-palm dominance in all scenarios.

Conclusions:

  • REDD+ can be financially competitive with oil-palm in tropical floodplain landscapes, particularly under specific conditions of suitability, carbon stock, and carbon pricing.
  • Fine-scale modeling demonstrates that even low carbon offset prices can make REDD+ viable for safeguarding significant forest areas.
  • This research provides a robust framework for targeting REDD+ investments and contributes to the global REDD+ policy debate.