Strengthening Thailand's forest protection with innovative fiscal policies

Thailand Forrest

With 124.375 million rai of lush forests hanging in the balance, Thailand faces a critical decision. Within these emerald realms reside myriad species and essential ecosystems, yet they confront escalating challenges, including deforestation.

According to data on annual tree cover loss by Global Forest Watch, urbanization and commodity-driven deforestation are among the drivers of permanent deforestation in Thailand. In 2021 alone, the country lost 68,750 rai due to urbanization and 5.406 million rai to commodity-driven deforestation.

To prevent that from happening further, Thailand’s Royal Forest Department has taken significant steps to emphasize forest restoration. Through legislation and action, the government aims to reserve existing forest land for conservation while promoting tree plantations to contribute to overall forest cover. The focus is on sustainable management and balancing economic development with environmental preservation.

Thailand’s strength lies in unity. Community participation and ecotourism play essential roles in sustainable forest conservation. By engaging local communities, Thailand can create economic incentives for protecting natural environments. Visitors learn about the importance of conservation efforts, fostering a sense of responsibility.

Additionally, Thailand has explored environmental commodity taxation to encourage forest conservation and land use change. Ecological fiscal transfers allocate funds to local governments based on forest preservation efforts, rewarding local communities for their conservation actions and promoting sustainable practices.

The action in Thailand has shown how the government played a vital role in providing a fiscal mechanism. Across the ocean, Indonesia, with its diverse ecosystems, is facing similar challenges, which led to cross-sectoral and public-private collaboration for sustainable land use practices, particularly in forest-rich areas like Jambi Province in Sumatra.

Public-Private Collaboration in Providing Fiscal Incentives

Komunitas Konservasi Indonesia Warsi (KKI-Warsi), a non-profit organization dedicated to environmental conservation, focuses on education, advocacy, and land restoration and has conducted activities with the community to restore and conserve peatlands.

This includes sustainable coffee cultivation, eco-fishery, peatland edu-eco-tourism, and the Pohon Asuh (foster tree) initiative. Warsi also uses these initiatives to provide an additional livelihood to the community while promoting sustainable land use. On the other hand, the activities done by

Warsi are often used as proof points on the impact of restoration efforts to curb carbon emissions and, therefore, should be supported.

Warsi, alongside the Indonesian government and the local community, has also initiated an edu-eco-tourism project in the peat forest of Pematang Rahim village by rebuilding infrastructure such as trekking paths, gates, and gazebos. In collaboration with the community, Warsi is working to revive ecotourism, which suffered during the COVID-19 pandemic.

With financial support from various organizations, including the local and national governments, Warsi is enhancing the visitor experience and providing education about the peat ecosystem. Additionally, this initiative emphasizes the importance of forest management in preventing fires, particularly during the dry season, and highlights the community's crucial role in protecting the forest from external threats.

In addition to large-scale projects like eco-tourism, Warsi invites public participation through its Pohon Asuh (Foster Tree) program. This crowdfunding initiative allows individuals to contribute Rp200,000 (USD12.5) annually to adopt a tree with a diameter of 60cm or more.

Managed by local communities, the program ensures tree growth and prevents illegal logging through forest patrols, bolstering the local economy and encouraging community forest stewardship.

Apart from ecotourism, Warsi along with the community in degraded peatland areas are cultivating liberica coffee. The activities have provided a sustainable farming alternative to Indonesia's fragile peatlands.

The yield of coffee beans can be enhanced by adding lime or manure, directly increasing farmers' income. To reduce emissions further Warsi and the community also using the coffee cherry residue as compost, ensuring soil fertility and supporting sustainable farming. This approach not only preserves the delicate peatland ecosystem but also boosts the economic well-being of local communities.

Looking ahead, Thailand's innovative approach to forest conservation, combining fiscal responsibility with community engagement, offers valuable lessons for the entire region. While Indonesia faces similar challenges, its unique approach to fostering public-private partnerships, exemplified by KKI Warsi's work, demonstrates the power of collaboration in achieving sustainable land management.

By learning from each other and implementing a combination of financial incentives and community-driven initiatives, ASEAN countries can effectively combat deforestation and create a more sustainable future.