Although peatlands occupy just 3% of global land area, they store approximately 600 gigatons of carbon—making them critical to global climate stability. These ecosystems also contribute to water security by holding 10% of the world’s non-glacial freshwater reserves. Despite their significance, protection levels for peatlands lag behind those of other key ecosystems, such as mangroves (42%) and salt marshes (50%). This disparity signals untapped potential for businesses focused on carbon offset initiatives and water resource management, particularly as corporate climate commitments drive demand for verifiable carbon reduction projects.
The study highlights that peatland degradation contributes an estimated 1.3–1.9 gigatons of carbon dioxide equivalent emissions annually—accounting for 2–4% of total global anthropogenic greenhouse gas emissions. For companies operating in climate finance, restoration services, and emissions reduction markets, these figures emphasize the urgent need for scalable solutions that mitigate peatland loss while generating investment-grade carbon credits.
Human activity is placing varying levels of stress on peatlands worldwide, with 44% of tropical peatlands experiencing high levels of impact, particularly in Southeast Asia, South Asia, and parts of Africa. These pressures stem from agricultural expansion, forestry practices, and infrastructure development—creating both risks and opportunities for businesses in affected regions.
For companies with operations in these areas, integrating peatland conservation into environmental risk management strategies is becoming increasingly essential. Solutions such as sustainable agriculture practices, improved land-use planning, and nature-based infrastructure investments can help balance economic growth, ensuring long-term business viability while aligning with regulatory and investor expectations.
One of the study’s key findings is that at least 27% of global peatlands overlap with Indigenous territories, many of which fall outside formal conservation frameworks. This presents a distinct opportunity for companies developing carbon offset projects or sustainable resource management initiatives to engage Indigenous communities in conservation efforts.
Indigenous groups have demonstrated effective environmental stewardship, and research suggests that formal community management structures yield strong ecological and social outcomes. Businesses that collaborate with Indigenous partners on peatland conservation efforts may benefit from improved project outcomes, enhanced regulatory credibility, and access to emerging environmental and social governance (ESG) investment channels. As demand for socially responsible environmental projects increases, strategic partnerships in these areas could provide companies with a competitive edge in sustainability-focused markets.
Evolving international policy frameworks are expected to accelerate investment in peatland conservation. Mechanisms such as the Global Stocktake under the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework are prompting nations to incorporate peatland protection into climate and biodiversity commitments.
Countries are integrating peatland conservation into their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs), creating regulatory tailwinds for private sector engagement. Indonesia, for example, has prioritized peatland preservation in its NDC strategy, while Peru is advancing conservation efforts through new protected areas and sustainable land-use policies. These policy shifts signal growing market opportunities for companies positioned to provide solutions in conservation finance, land restoration, and emissions reduction.
A critical challenge in peatland conservation is the need for improved monitoring systems to track ecosystem health, carbon sequestration, and land-use changes. This gap creates opportunities for technology providers, environmental data firms, and sustainability consultants to develop advanced monitoring tools, such as satellite-based tracking, remote sensing, and on-the-ground sensor networks.
Companies capable of delivering reliable, scalable data solutions will be well-positioned to support the growing demand for peatland conservation initiatives, while also meeting the increasing requirements for transparency in carbon markets and regulatory compliance.
