Heart of Borneo (Indonesia, Malaysia, and Brunei Darussalam)

The Heart of Borneo is an area of mountainous forests in the center of the world's third largest island. It is an area of exceptional biological diversity. More than two decades of unsustainable logging, fires, plantation development, and mining has led to a dramatic decline and degradation of forest and freshwater ecosystems in the Heart of Borneo.

The Heart of Borneo Initiative was established by the governments of Indonesia, Malaysia, and Brunei Darussalam with the objective to protect the environment and develop the area in a sustainable way. An important issue is that the value of environmental services is often not accounted for in government and private sector decision-making. Supported by WWF, a group of scientists, economists and policy specialists conducted a natural capital assessment for the Heart of Borneo. The goals of the assessment were to improve understanding of the value of ecosystems to Borneo's economy and society, and to improve the sustainability of decision making. The models provided by InVEST, along with other GIS and economic analyses, were used to understand the flow of environmental services to local, regional and global beneficiaries.

Following a multi-stakeholder workshop conducted by the Natural Capital Project and WWF in Jakarta, Indonesia, in December 2010, the InVEST analysis was conducted mainly by a local Indonesian team, with support from the Natural Capital Project, Hatfield Consultants, and the European Space Agency (www.eomd.esa.int).

The Heart of Borneo: Investing in Nature for a Green Economy Report

The Heart of Borneo: Investing in Nature for a Green Economy report has been developed through extensive stakeholder dialogues as well as economic and environmental modeling. The report is designed to support government-driven efforts under the Heart of Borneo (HoB) Initiative to mainstream nature into economic decision-making as a key element in establishing a green economy. It also aims to support policy discussions regarding investments, (fiscal) policies and subsidy allocation and on-the-ground cross-sectoral implementation. The report:

• Shows that valuing natural capital supports the building of local economies
• Showcases several important values of ecosystems and biodiversity in the Heart of Borneo
• Highlights environmental costs and forgone revenues in the current economy
• Presents policy options and economic instruments, as well as on-the-ground and cross-cutting interventions, targets and indicators.

Visit the Heart of Borneo Green Economy website.

Download the full report (14.5 Mb) or the executive summary.

Business as Usual or a Green Economy?

Using alternative future scenarios in InVEST enabled comparison of the potential changes in environmental services:

• Business as Usual scenario: characterized by a focus on short-term gains (e.g., < 10 years), externalization of impacts and their costs, and little or no recognition of the economic value of natural capital; and
• Green Economy scenario: characterized by longer-term output (e.g., > 10 years), and internalization of impacts and costs, which avoids the degradation of natural capital, thereby generating potential for a long-term flow of environmental services.

Scenarios using IDRISI Land Change Modeler

IDRISI Land Change Modeler (LCM) - an integrated software application for land change analysis and prediction, developed by Clark Labs - was used to predict land-cover based on past change observed between 2000, 2005 and 2009. Predictive modeling of future scenarios based on historical data was deemed to be appropriate for Kalimantan because significant land-cover change is occurring that does not adhere to the zones designated in government spatial plans. However, because of the complexity of land cover change in Kalimantan, IDRISI LCM was limited to modelling change in natural forest extent. Additional drivers included existing roads, fire distribution, slope, elevation, and settlement. Selected land use information was introduced, including spatial data on plans for mining, palm oil, and forestry.

InVEST models

The following InVEST models were used in the Heart of Borneo:

• Water yield - the amount of water derived from the Heart of Borneo, which supports downstream plantations, industry and cities;
• Water purification (nutrients) - nutrient loads in rivers and the influence of land cover and land use management, especially proposed expansion of oil palm;
• Sediment retention - sediment load and potential costs for maintaining rivers that are important for regional transport;

Importance of satellite imagery

An assessment of natural capital for an area as large and diverse as Borneo requires a range of environmental, social and economic data. Information about land cover and land use is particularly important; satellite earth observation provides the most cost effective, timely and accurate source.

In the Heart of Borneo assessment, ESA's GlobCover (ionia1.esrin.esa.int/) from 2005 and 2009 provided a consistent dataset across the national boundaries of the three countries. A carbon stock map developed by SARVISION (www.sarvision.nl) using ALOS PALSAR data was also analysed in relation to the global climate regulation benefits that the Heart of Borneo provides.

Updates from the Field

Green economy approach shows hope for Borneo amidst floundering Rio+20 talks

Press Release - June 21, 2012

The Heart of Borneo (HoB): Investing in Nature for a Green Economy Report is a practical regional guide on how future economic growth can be achieved while protecting the values of ecosystems and biodiversity of the Heart of Borneo - a 220,000km2 treasure trove of unique and often endangered animal and plants species, on the world's third biggest island.

Heart of Borneo Green Economy Workshop: Jakarta December 1-3, 2010

WWF-Indonesia hosted a workshop with government agencies (Indonesia's Coordinating Ministry of Economic Affairs, and Ministries of Environment, Forestry and Public Works), development partners (UK Department for International Development, Food and Agriculture Organisation, United Nations Development Program and UN-REDD), international consulting firms PricewaterhouseCoopers, Hatfield Consultants and Witteveen+Bos, representatives from the University of Indonesia and staff from WWF-US, Malaysia and Indonesia. The workshop introduced the Heart of Borneo green growth assessment which aims to use InVEST and other software and modelling tools to strengthen policy, governance, business and investment decisions as part of the emerging green economy in the Heart of Borneo. The assessment also aims to help national and local stakeholders to better understand the value of forests. It will help in advocating for improved conservation, good business practices and mobilize fiscal and economic instruments which encourage investment in natural capital. The Natural Capital Project provided training in scenario development and InVEST, identified as a key tool to support the assessment.

European Space Agency InVESTs in the Heart of Borneo, March 2011

As part of the Heart of Borneo Initiative's work, WWF is using an innovative GIS based tool called Integrated Valuation of Environmental Services and Trade-offs (InVEST). Supported by the European Space Agency (ESA), which has recently granted US$70,000 towards data acquisition and GIS resources, InVEST provides maps showing the quantity and location of environmental services (such as forest or peat carbon, water yields and non-timber forest products) within the landscape. European Space Agency InVESTs in the Heart of Borneo (Page 9)

Biodiversity Conservation in Multiple-Use Forest Landscapes in Sabah, Malaysia: Sabah Forestry Department, Sandakan, Malaysia, July 26-28, 2011

WWF and Hatfield Consultants presented the ongoing natural capital assessment at a multi-stakeholder workshop related to the design of a Global Environment Facility project for biodiversity conservation in multiple-use forest landscapes. The team designing the project was interested to learn about the capabilities of InVEST. A practical introduction to InVEST was provided to staff from WWF Malaysia and Sabah Forestry Department.

A Green Economy Corridor in Kalimantan: Towards green growth based on innovative management of forest lands and natural resources: Jakarta, Indonesia, August 12-13, 2011

WWF presented the ongoing natural capital assessment at a workshop related to the design of a Green Economic corridor in Kalimantan. The workshop was hosted by Unit Kerja Presiden bidang Pengawasan dan Pengendalian Pembangunan (UKP-PPP; http://ukp.go.id/) - the president of Indonesia's unit for supervision and control of development. A key partner for the event was the United Nations Environment Programme, including Pavan Sukhdev, study leader for The Economics of Ecosystems and Biodiversity Study (TEEB; www.teebweb.org/). Threshold 21 (T21), a dynamic simulation tool designed to support comprehensive, integrated long-term national development planning was also introduced (http://www.millennium-institute.org/integrated_planning/tools/T21/index.html). The aim was to determine how outputs from InVEST may support T21 comparative analysis of different policy options, and help to identify policies that will support sustainable management.

Business solutions to drive a green economy in the Heart of Borneo: Kota Kinabalu, Sabah, Malaysia, 16 November, 2011

wwf.panda.org/wwf_news/?uNewsID=202404

Environmental services and the value of natural capital were key topics at one of the largest green economy conferences ever held in the region. WWF launched the Malaysian chapter of its new initiative for business, called the Heart of Borneo Green Business Network.

Publications

• Heart of Borneo: Investing in Nature for a Green Economy
• Heart of Borneo Newsletter: the Heart of Borneo: what is it worth? (Page 8)
• Preliminary results from HOB

Links

• Heart of Borneo Green Economy(www.hobgreeneconomy.org)
• WWF Indonesia (www.wwf.or.id/en/)
• WWF Malaysia (www.wwf.org.my/)
• WWF Germany (www.wwf.de/)
• European Space Agency (ESRIN) (www.eomd.esa.int/)
• Hatfield Consultants (www.hatfieldgroup.com/)
• Witteveen+Bos (www.witteveenbos.com/)
• NEO BV (www.neo.nl/)

People

Hatfield Consultants, a Canadian environmental and geomatics consulting company with a 20 year presence in Indonesia coordinated the project. Hatfield worked closely with WWF, scientists from the Natural Capital Project, Witteveen+Bos and NEO BV.

Contact

Nirmal Bhagabati
Senior Program Officer (Environmental Services), World Wildlife Fund (WWF-US) Conservation Science Program