The World Resources Institute (WRI) has launched an innovative anti-deforestation model that aims to deter conversion of Indonesian rainforest for oil palm plantations.

The project, dubbed “POTICO” (Palm Oil, TImber, Carbon Offsets), integrates sustainable palm oil, FSC-certified timber, and carbon offsets in order to “divert new oil palm plantations onto degraded lands and bring the forests that were slated for conversion into certified sustainable forestry”.

WRI says POTICO would allow the palm oil industry to expand without destroying tropical forests. The implications for forest conservation are tremendous — oil palm development is presently one of the leading drivers of deforestation in Indonesia and Malaysia.

While tens of millions of hectares of degraded land is suitable for oil palm development in Indonesia, plantations are often established on forest land for two reasons: a ‘logging subsidy’ generated by the sales of timber and concession arrangements with governments that avoid claims arising when land has already been ‘used’ for a prior purpose. WRI says POTICO will provide an alternative model for the oil palm industry that will enable it to truly become more sustainable.

“POTICO’s main goal is to divert new oil palm plantations away from forests, onto degraded areas. This would ensure that oil palm plantations could keep expanding to meet demand—generating local revenues and jobs—while halting the destruction of forests,” said WRI in a statement.

“POTICO aims to demonstrate that it is possible to pay for this ‘more expensive’ way to develop new plantations by developing a combination of different revenue streams. This will circumvent the perverse economic incentive to clear virgin forests when establishing oil palm plantations.”

WRI hopes to convert 1.25 million acres of degraded land into oil palm plantations, but the environmental group notes that POTICO would work with local communities to resolve conflicts over such lands.

“It is important to note that degraded lands in Indonesia are usually not empty,” said WRI. “These lands are often used by local communities.

“Any new developments by companies on those lands would need free, prior and informed consent from the communities. Under POTICO, WRI will work with communities and the companies to meet the highest standards of free, prior and informed consent.”

(Source: Mongabay.com)