New research has identified around 42 million hectares of intact forests within commercial concessions across Cambodia, Indonesia, Malaysia and Myanmar, highlighting a major untapped opportunity for conservation.
Using satellite data, researchers found that these forests are located inside areas designated for logging, timber plantations, rubber and oil palm production. If cleared over the next 30 years, the forests could release an estimated 1.2 gigatons of carbon dioxide into the atmosphere.
The study suggests that protecting these forests by encouraging concession holders to choose conservation over land conversion could play an important role in meeting global climate and biodiversity goals.
However, researchers warned that carbon markets alone may not provide enough financial incentive. Carbon credits for avoided deforestation in Southeast Asia currently trade at around $5 to $12 per metric ton, while the study estimates prices would need to range between $33 and $1,677 per metric ton to compete with the profits from agriculture and logging.
The researchers have called for a broader mix of financial solutions, including green bonds, blended finance, biodiversity credits and payments for ecosystem services.
They also stressed the need for regulatory reforms as concession holders in some Southeast Asian countries may risk losing their land rights if they leave forests undeveloped.
According to the study, governments, financial institutions and corporations will need to work together to reform concession policies and redirect harmful subsidies and financing toward forest conservation.