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Consequently, limited public funding has to be stretched out to enhance the capacity of stakeholders and raise public awareness. No carbon benefi ts have been demonstrated in terms of additionality. However, local participation is very promising. Peatlands management in Indonesia, home of some 20 million ha or 50% of tropical peatlands, has a signifi cant role in maintaining biological diversity, including endangered species of orangutan. This includes the rehabilitation of degraded peatlands due to the ill-planned Mega Rice Project causing devastation of peat forests and hydrologic systems. Involving local communities in canal blocking and reforestation shows promising results in terms of environmental benefi ts and livelihoods. Fire risks are reduced as the water table is increased. Fish production is increased as the local practice of fi sh ponds called tebat is re-introduced. The blocking of canals also reduced the possibility of transporting logs illegally cut from conservation areas. Sustainable management of peatlands is highly desirable from both global and local perspectives. Indonesian forest and land fires during 1997 and 1998 affected 2.12 million ha of peatlands (Tacconi 2002). The estimated carbon loss from peatland fires ranges between 0.81 and 2.57 Gt (Page et al. 2002). In addition, global annual CO2 release due to peatland drainage or degradation ranges from 2 to 20 tC/ha (Maltby and Immirzy 1993).
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