4.7.2 Comprehensive Value Chains (VCs) Mixing
“Economy-Based VCs” and “Ecology-Based VCs”
for Coexistence with Local Communities
In tropical peatlands, especially in the tropical peatlands of Southeast Asia, many
people already live along rivers. For them, daily food and cash income are essential
for their livelihoods. Typically, they earn a small cash income from fishing or slashand-burn agriculture. In the worst cases, illegal logging has been conducted as a
means of livelihood. Particularly, in recent years, because the international market
price of palm oil was relatively stable, the number of farmers, who burn the peatlands
and plant oil palms, has been increasing. As a result, those burning activities have
undoubtedly contributed to the forest and peat fires in Indonesia. Forest and peat fires
can completely destroy any remaining biodiversity and are extremely difficult to
restore. Therefore, peatland management to avoid forest and peat fires and selection
of plants for cultivation following these management practices, with efforts to add
value in the value chain, are necessary.
Thus, if peatland conservation is forced on local people and plantation companies, it is unlikely that all parties will obey this kind of policy or international
governance.
However, there is still disagreement with respect to developing or managing
tropical peatlands with inappropriate water management strategies, referred to here
as “Drainage-based WM,” which cause serious disasters, such fire, degradation, and
biodiversity loss. If “Stock-based WM” is applied, natural capital conservation is
possible because good water conservation contributes to maintain peatland function
on carbon–water–nutrient–biodiversity balance.
Thus, “Stock-based WM” supports both “economy-based VCs” and “ecologybased VCs.” “Stock-based WM” must be supported by three factors: (1) total water
management planning, (2) integrated MRV system, and (3) new value chain construction focusing on biomass utilization.
4.7.3 Comprehensive Value Chains and a Carbon-Negative
Society
The efforts of environmental consideration in VCs have significant positive impacts
on the preservation of natural ecosystems and each business activity in a value chain
by increasing productivity and per-capita income with added value in the international market. Therefore, the formation of a comprehensive value chain that integrates economic and ecology VCs is essential. However, it is also true that there has
been no market for evaluating and trading VCs until now.
Policymakers should also pay close attention to market formation for ecosystem
services, such as biodiversity conservation and watershed protection (Teytelboym
2019) to achieve a carbon-negative society. For this purpose, mechanisms to assess
4 Coexistence of Humans and Nature in Tropical Peatlands
157
“Economy-Based VCs” and “Ecology-Based VCs”
for Coexistence with Local Communities
In tropical peatlands, especially in the tropical peatlands of Southeast Asia, many
people already live along rivers. For them, daily food and cash income are essential
for their livelihoods. Typically, they earn a small cash income from fishing or slashand-burn agriculture. In the worst cases, illegal logging has been conducted as a
means of livelihood. Particularly, in recent years, because the international market
price of palm oil was relatively stable, the number of farmers, who burn the peatlands
and plant oil palms, has been increasing. As a result, those burning activities have
undoubtedly contributed to the forest and peat fires in Indonesia. Forest and peat fires
can completely destroy any remaining biodiversity and are extremely difficult to
restore. Therefore, peatland management to avoid forest and peat fires and selection
of plants for cultivation following these management practices, with efforts to add
value in the value chain, are necessary.
Thus, if peatland conservation is forced on local people and plantation companies, it is unlikely that all parties will obey this kind of policy or international
governance.
However, there is still disagreement with respect to developing or managing
tropical peatlands with inappropriate water management strategies, referred to here
as “Drainage-based WM,” which cause serious disasters, such fire, degradation, and
biodiversity loss. If “Stock-based WM” is applied, natural capital conservation is
possible because good water conservation contributes to maintain peatland function
on carbon–water–nutrient–biodiversity balance.
Thus, “Stock-based WM” supports both “economy-based VCs” and “ecologybased VCs.” “Stock-based WM” must be supported by three factors: (1) total water
management planning, (2) integrated MRV system, and (3) new value chain construction focusing on biomass utilization.
4.7.3 Comprehensive Value Chains and a Carbon-Negative
Society
The efforts of environmental consideration in VCs have significant positive impacts
on the preservation of natural ecosystems and each business activity in a value chain
by increasing productivity and per-capita income with added value in the international market. Therefore, the formation of a comprehensive value chain that integrates economic and ecology VCs is essential. However, it is also true that there has
been no market for evaluating and trading VCs until now.
Policymakers should also pay close attention to market formation for ecosystem
services, such as biodiversity conservation and watershed protection (Teytelboym
2019) to achieve a carbon-negative society. For this purpose, mechanisms to assess
4 Coexistence of Humans and Nature in Tropical Peatlands
157