Growth and carbon sequestration potential of plantation forestry in Indonesia:I Paraserianthes falcataria and Acacia mangium
Subarudi, Deden Djaenudin, Erwidodo and Oscar Cacho
The development of plantation forests in Indonesia is an ongoing
activity, with planting of fast-growing species, such as Paraserianthes falcataria
and Acacia mangium. The establishment of exotic fast-growing trees is
one way of rehabilitating unproductive forest lands, which are usually covered
by bushes, weeds or alang-alang grass (Imperata cylindrica). This paper explores
the carbon-sequestration potential of two tree species. This is achieved by
estimating their growth rates and performing economic analysis when carbon-credit
payments are available. The effect of different carbon-accounting methods on
the economic performance of plantation forests is analysed. The paper shows
that carbon-credit payments may increase the net present value of a plantation
by 11% to 20 % above the timber value alone. Discount rates are shown to have
an important effect on economic performance of plantation forests, the effects
of carbon prices and baseline settings are not as important.