The New Forests-managed Tropical Asia Forest Fund 2 (TAFF2), had made its first investment in the Kuan Kreng Landscape (KKL) in Thailand, which holds the country’s second largest peat swamp forest area.
Two-thirds of the 70,715ha KKL peat swamp forest is degraded due to drainage canal networks associated with agricultural land use, which lowers water tables and causes GHG emissions from peat oxidation.
About 40% of the KKL landscape is suitable for a carbon project and, according to projections, has the potential to generate on average over 500,000 carbon credits per year.
New Forests has established a local entity, Restore Nature Thailand, which works with the Thai government and local community groups to design and implement a project that aims to raise the ground water table in select areas through the construction of semi-permanent canal blocks to restore degraded peatland.
In addition, the project will undertake revegetation and enrichment planting to create biodiversity corridors to support the distribution of fauna and flora. Development of an integrated fire management programme will also be a key component of the project.
Geoffrey Seeto, managing director of New Forests Asia said: “KKL is home to species who are important on a global scale. Implementing impact activities related to climate change, support for communities and rural livelihoods, and protection and enhancement of biodiversity are in alignment with TAFF2’s impact objectives and our investors’ desire to invest in activities that have a positive impact on the environment and communities.”
Chalita Forgotson, country manager, Restore Nature Thailand, said: “We’re excited to partner with like-minded organisations to protect and restore this important part of Thailand’s natural environment.”
Investors in TAFF2 include Singapore’s Temasek and Frances’ TotalEnergies and three leading Japanese institutions Mitsui, Nomura, Sumitomo Mitsui Trust Bank. Other investors are Asian Development Bank, the Australian Government and a philanthropic group, David and Lucile Packard Foundation.
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