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Singkarak: combining environmental service markets for carbon and watershed functions?

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The hills surrounding Lake Singkarak at the equator in Sumatra are a mosaic of natural forest, strongly degraded forest, grassland, failed reforestation projects, home gardens and agroforestry systems, separated from the lake by a zone of intensive paddy rice cultivation. There are clear opportunities for an increase in carbon stock through trees that farmers want and expect to gain the benefits from. A substantial part of the grasslands belongs to the community, and negotiations over resource sharing for reforestation on the state forest land are ongoing. In 2002, the National Strategy Studies on CDM conducted by the Indonesian Ministry of Environment identified the Singkarak watershed as one of the potential sites in Indonesia for implementing a reforestation-carbon project. Despite its preparedness, the project has not obtained confirmed buyers in engaging in the carbon market. One of the reasons for the difficulties in finding investors is that the project was initiated when most of the rules regarding implementation of the Kyoto Protocol and the carbon market in Indonesia were still in an embryonic stage1.

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