Satellite data reveals about 42 million hectares of intact forest remain inside commercial land concessions in Southeast Asia, presenting a vast conservation opportunity. However, current carbon credit prices fall far short of making forest protection financially competitive with commodity production.
- 42 million hectares of intact forest exist inside Southeast Asia’s commercial concessions
- Current carbon credit prices are too low to incentivize conservation alone
- Policy reform and blended green finance are key to sustainable forest protection
What happened
A new study led by researchers at the National University of Singapore used satellite imagery to identify around 42 million hectares of intact forest inside commercial concessions used for logging, rubber, oil palm, and timber production across Cambodia, Indonesia, Malaysia, and Myanmar. This area is roughly equivalent to the size of the entire country of Malaysia. The study highlights that clearing these forests could release up to 1.2 gigatons of carbon dioxide over the next three decades, underscoring the environmental stakes.
The research points toward a significant opportunity for conservation if concession owners can be incentivized to preserve these forests instead of converting them for production. However, the study also reveals that relying solely on carbon markets is insufficient, as current carbon credit prices range only from $5 to $12 per metric ton—far below the $33 to $1,677 per metric ton estimated to make conservation competitive with agriculture or logging.
Why it feels good
Discovering such an extensive presence of intact forest within commercial concessions is encouraging for biodiversity and climate efforts in Southeast Asia. It suggests that integrating conservation goals within working landscapes could significantly aid the region’s climate commitments and protect vital ecosystems. Engaging concession holders as conservation partners represents a pragmatic approach that aligns environmental objectives with economic realities.
Moreover, the findings emphasize the importance of expanding beyond carbon finance alone. Embracing various green finance mechanisms—including blended finance, green bonds, biodiversity credits, and payments for ecosystem services—can collectively fill the financial gap needed to safeguard these forests. This holistic perspective offers a hopeful path that balances conservation with economic development.
What to enjoy or watch next
Future efforts will likely focus on addressing key regulatory challenges that hinder conservation in concession landscapes. For instance, governments in the region often require concession owners to develop land to maintain their licenses, discouraging forest protection. Watching how local policies evolve to support reclassification or sustainable management of these lands could signal significant progress for forest conservation.
Additionally, keep an eye on innovations in green finance and corporate commitments to sustainable sourcing. The combination of regulatory reform, better financial incentives, and broader collaboration among governments, banks, and companies will be crucial to turning this untapped conservation potential into on-the-ground results for Southeast Asia’s forests.