Southeast Asia’s tropical forests, vital for biodiversity and climate stability, are at serious risk despite emerging conservation efforts tied to carbon markets. A recent study reveals that relying solely on carbon finance will not protect these forests from continued clearing for agriculture and logging.
- 42 million hectares of intact forest remain inside Southeast Asia’s commercial concessions.
- Carbon prices needed for forest conservation are up to 140 times higher than current values.
- Diversified green finance tools are essential to complement carbon markets for effective forest protection.
What happened
A study analyzing satellite data from thousands of logging, oil palm, timber, and rubber plantation concessions across Cambodia, Indonesia, Malaysia, and Myanmar found that about 42 million hectares of intact forest still exist within these production landscapes. This significant area, larger than the entire country of Malaysia, holds high value for biodiversity, carbon storage, and ecosystem services.
The research projects that losing these forests over the next 30 years could generate 1.2 gigatons of carbon dioxide emissions, roughly 20% of all industrial emissions from ASEAN countries between 2000 and 2023. Despite this, financial incentives currently favor clearing forests to expand agriculture and plantations rather than conserving them.
Why it feels good
This study sheds light on a promising opportunity: engaging concession holders as conservation partners could protect large tracts of forest that remain commercially accessible. It refocuses conservation efforts to include these managed landscapes rather than just protected areas, expanding the scope for impact.
Furthermore, by quantifying the carbon prices needed to financially compete with commodity production, the research provides a clear target for policy and market development. This precision empowers governments, investors, and activists to advocate for stronger climate policies and better support mechanisms for forest-friendly practices.
What to enjoy or watch next
While carbon markets are a critical tool, their current prices—typically between $5 and $12 per metric ton of carbon dioxide—are insufficient to prevent deforestation within concessions. The study suggests carbon prices may need to rise substantially, up to $1,677 per metric ton, a level unlikely in the short term.
To effectively safeguard Southeast Asia’s forests, a blend of financing approaches will be necessary. These include blended public-private finance, green bonds, payments for ecosystems services, and biodiversity credits. Following developments in these innovative financial tools and strengthened climate policies will be important to watch as the region strives to reconcile development with conservation.