Indonesia Compact - Green Prosperity: Peatland Grant Portfolio

MCC’s $474 million Indonesia Compact (2013-2018) included the $288 million Green Prosperity (GP) Project that aimed to increase economic productivity and reduce land-based greenhouse gas (GHG) emissions. The project, through the GP Facility, provided funding to three grants with co-financing totaling $18.4 million, which contained, among other work, peatland rewetting and canal blocking through the placement of dams to reverse surface water outflow and raise water levels. The focus of parts of these grants was to rewet drained peatland to reduce fire risk and GHG emissions, and also included over $3 million in co-financing. In addition, each grant funded alternative livelihoods components to help communities adjust to the changes from the rewetting and improve agricultural productivity.