From August to October 2006, South East Asia was blanketed by a pall of thick, smoky haze. The pollution originated mainly in the Indonesian provinces of Kalimantan and Jambi, where local farmers attempt to clear their land of rainforest by burning it.

The fires can burn for months because the forests grow in ancient peat beds; the peat smoulders underground, releasing carbon into the atmosphere.

In the wealthier neighbouring nations of Singapore, Malaysia and Brunei, there was outrage as locals choked, airports were closed, and industry stalled.

On October 30, respected economist Sir Nicholas Stern delivered his 700-page report, ‘The Stern Review on the Economics of Climate Change’, commissioned by the British government.

Exploring the effects of climate change and global warming on the world’s economy, the report concluded that 1% of global gross domestic product (GDP) per annum must be invested in mitigating climate change. Failure to do so could risk global GDP being up to 20% lower than it otherwise might be, representing the widest-ranging market failure ever seen.

Nobel prize-winning economist James Mirrlees stated of the review, "The Stern report shows us, with utmost clarity, while allowing fully for all the uncertainties, what global warming is going to mean; and what can and should be done to reduce it. It provides numbers for the economic impact, and for the necessary economic policies. It deserves the widest circulation.”

As fires raged in Kalimantan, orangutan conservationist Lone Droscher Nielsen and her team worked around the clock rescuing injured and orphaned primates displaced by the fires.

About 5,000 of the endangered animals have been displaced by the fires, and Lone’s facilities are stretched to the limit, housing 600 orangutans in need of rehabilitation.

In suburban Sydney, CEO of Carbon Conservation Dorjee Sun was tracking the situation in Indonesia, sparked by his concern for the imminent demise of the orangutan.

Dorjee was a collaborator on Steve Irwin’s Wildlife Warriors website and his interest was sparked by the challenge of finding a long-term solution to the plight of the orangutans. Using the funds from his dotcom successes and his background in business, law and marketing, Dorjee began to develop a plan to stop further destruction of tropical rainforests.

In January 2007, a report on peatlands by Marcel Silvius of Wetlands International gained international attention. This report revealed that peatlands are the most efficient terrestrial ecosystems in storing carbon, and while covering only 3% of the world's landmass, the peat contains as much carbon as all terrestrial biomass, twice as much as all global forest biomass, and about the same as in the atmosphere.

Clearing, draining and setting fire to peatlands emits more than 3 billion tonnes of carbon dioxide every year - equivalent to 11% of global emissions from fossil fuels. For the first time, peatland degradation was definitively linked to climate change.

“The Last Stand of the Orangutan - State of Emergency: illegal logging, fire and palm oil in Indonesia's national parks”, was released in February 2007 by the United Nations Environment Program as a ‘rapid response assessment’.

Estimates suggest there are between 45,000 and 69,000 Bornean and no more than 7,300 Sumatran orangutans left in the wild. This is very close to the minimum threshold of animals it takes to maintain a breeding population… the orangutan is on the edge of extinction, with no end to habitat destruction in sight.

By February, awareness of Indonesian deforestation and its impact on climate change began to snowball, as did the understanding that the cultivation of palm oil is a major motivator for the land clearing.

Borneo Orangutan Survival and Friends of the Earth both released major reports on the role of palm oil in orangutan habitat destruction. [See reports: ‘BOS palm oil report’ and ‘FOE Greasy Palms Summary’]. Palm Oil Action Groups in the UK and Australia began to mobilise awareness campaigns.

In Jambi, Sumatra, Achmadi the farmer completed the initial stages of his harvest of the fruit from his crop of oil palms. The yield is high and he has started to look for a new plot of land to expand his plantation. He’s concerned about his financial needs, and his ability to support his wife and daughter.

In Sydney, Dorjee Sun has an important meeting with an atmospheric scientist called Professor Ron Prinn, from the Massachusetts Institute of Technology. Prof. Prinn is the director of the Center for Global Change Science and Co-Director of the Joint Program on the Science and Policy of Global Change.

He leads the Advanced Global Atmospheric Gases Experiment (AGAGE), in which the rates of change of the concentrations of the trace gases involved in the greenhouse effect and ozone depletion have been measured continuously over the globe for the past two decades.

This meeting was a crucial step forward in Dorjee’s securing the expert support that could bring his plan closer to reality.

On the 23rd of March Sir Nicholas Stern arrived in Jakarta, where he addressed government ministers and members of parliament on the economic impacts of climate change, specifically in the context of Indonesia’s situation. By this time, his report had already galvanised a number of governments to take urgent action in mitigating global warming.

In his Lateline interview with the ABC’s Tony Jones, Sir Nicholas discussed his position.

At the time of Stern’s visit, Dorjee also visited Jakarta, where he met Patrick Anderson, a strategic advisor to WALHI (The Indonesian Forum for the Environment) and other conservation groups.

The two agreed that while carbon trading and ‘avoided deforestation’ could be a coup for conservation in Indonesia, careful measures would have to be taken to ensure that profits reached local farmers and indigenous people, rather than being siphoned off through corruption or bureaucracy.

Avoiding deforestation schemes and their role in REDD (Reducing Emissions from Deforestation in Developing nations) are major concerns for WALHI.

Lone’s rehabilitation centre in Kalimantan became increasingly overcrowded and she was facing a crisis. Her own living room was filled with orphaned babies because there was no room for round-the-clock supervision at the centre.

At this time, her friend and former employee Hardi Baktiantoro went on his first mission to gather evidence of the continuing deforestation by the palm oil corporations, travelling far upriver to a plantation owned by PT Makin Corporation.

In Bali, Dorjee Sun obtained the support of three provincial governors, who subsequently signed an agreement giving him the rights to trade the carbon credits represented by their forests.

Governors Yusuf Irwandi (Aceh), Barnabas Suebu (Papua), and Abraham Atururi (Papua Barat) all preside over huge tracts of forest which, without the alternative of Dorjee’s scheme, might otherwise be sold off in ‘concessions’ to palm oil corporations or agribusiness concerns.

Dorjee’s proposal was of particular interest to Aceh’s Governor Irwandi, a proud Acehnese citizen with a passion for the preservation of his province’s native state.

In April, he demonstrated his dedication to developing ecologically sustainable industries and preventing illegal logging by taking a New York Times reporter on one of his ‘spot raids’ on illegal logging camps in the highlands.

In Jambi, Achmadi completed the purchase of his new land and cut down the saleable timber in preparation for clearing with fire once the debris was sufficiently dried out.

In May, Dorjee followed up his meeting with the governors by travelling to Papua for further discussions with Governor Barnabas Suebu, AKA “Governor ‘Bas”.

Upon his return to Sydney, Dorjee met with his lawyers – international experts on carbon finance to arrange the paperwork necessary to start selling the carbon credits. The lawyers explained that the process and drafting would take time. For Dorjee, any delay was a source of frustration: when 300 football fields of forest is cleared every hour, there’s no time to waste.

Achmadi’s brother-in-law, Hari, came into contact with WALHI through his own work with a social justice NGO in Jambi City.

WALHI produces public information leaflets about the destructive impact of illegal forest burning - an education campaign designed to discourage farmers from unsustainable practices. In July, Hari took one of these leaflets to show to Achmadi, who discussed it with his family.

In Jambi City, Patrick Anderson, (strategic advisor to WALHI), visited Zulkifli Nurdin, governor of Jambi. The governor had spoken out against burning and deforestation in various international publications including Antara News Agency and Down to Earth Magazine

Patrick was keen to discuss the practical steps the governor was taking to stop the burning in Jambi.

The staff at the Jambi branch of WALHI were working closely with indigenous communities living in the forest. In July, they travelled to a remote forest beyond Pauh (in the Sarolangun Regency) to visit the Orang Rimba people.

The Orang Rimba do not have much contact with the outside world, but were willing to talk to WALHI about their concerns. The chief explained how his community is being marginalised by encroaching plantations and modernisation.

Inside Indonesia: Orang Rimba

After studying the leaflet brought to him by Hari, Achmadi visited the Jambi City branch of WALHI to talk to them about the impact of him burning his land.

At Nyaru Menteng, the center is suffering from financial difficulties as Lone struggles to rehabilitate all of her injured and orphaned charges. She is desperate for a long-term solution.

After letting it dry for a few months, Achmadi was ready to burn the forest remnants on his new plot of land. With the help of men from his village (and a little enchantment by the local wizard), the ceremonial incineration was carried out.

The group torched the underbrush and gnarled trunks using handmade bamboo torches filled with kerosene. The air was filled with smoke and particles, and the shouts of the assembled community. Similar fires were being lit all over Indonesia.

In September, Aceh’s Governor Irwandi embarked on a five-city tour of the United States, where he connected with politicians, investors, NGOs and philanthropists with the intention of maintaining stable and sustainable foreign investment in his province.

A great deal of foreign aid flooded into Aceh following the 2004 tsunami; Governor Irwandi was keen to thank his benefactors and ensure the donations were used wisely. On the east coast, Governor Irwandi met with George Soros, the Goldman Sachs Foundation and Human Rights Watch in New York (among others), and travelled to Washington DC to meet sympathetic Senators on Capitol Hill and the President of the World Bank.

In the USA, Dorjee joined his ally, Irwandi, on the investment roadshow. They met with Starbucks in Seattle, where Dorjee pitched his avoided deforestation scheme to the chairman himself, Howard Schultz. Starbucks obtains a huge amount of raw coffee from Sumatra, and the Acehnese delegation hoped the coffee giant might be able to help save the forest.

Dorjee also visited eBay in San Jose. The wealthy Internet powerhouse owns PayPal, Skype and other successful businesses. Dorjee wanted to investigate their potential support for and involvement in an online carbon trading network.

In New York City, Dorjee met with Paul Wolfowitz – an unexpected ally in avoided deforestation. Wolfowitz - the former US Deputy Secretary of Defence and World Bank President - was US ambassador to Indonesia from 1986 to 1989 where he learned the language and immersed himself in the culture. His connections could prove to be very useful to Dorjee.

When Patrick Anderson from WALHI met Jambi’s Governor Zul, he mentioned the plight of thesmall-scale farmer,Achmadi. Upon hearing that he wanted to change his methods but lacked an alternative to burning, Governor Zul asked if he could meet with Achmadi.

Later, the opportunity arose and Achmadi and Hari had dinner with Governor Zul at his official residence. Alternative crops and more sustainable farming methods were discussed, and Achmadi was invited to join a trial project using new practices.

In Sydney, Dorjee Sun had dinner with atmospheric scientist Professor Ron Prinn, from the Massachusetts Institute of Technology. Dorjee had met Professor Prinn before, and because the professor leads the Advanced Global Atmospheric Gases Experiment (AGAGE), Dorjee is seeking Prinn's expert scientific support to advance his plan for a massive carbon trading scheme involving Indonesia's beautiful forests.

Professor Prinn: “The way we can solve this problem…is basically to put a price on the emissions of greenhouse gases. You have to pay to emit.”

In Kalimantan, logging is underway on a massive scale. The plantations’ grasp is spreading further into the forest. Hardi Baktiantoro undertakes another risky investigative exploration.

Hardi: “Forest clearing for palm oil is worse than illegal logging… The destruction is massive. If you stop the company you can save the orangutans.”

At home in Sydney, Dorjee was sleep-deprived, stressed and exhausted from his months of travelling and pitching his scheme. He was up to his eyes in preparation for his all-important trip to Bali for the United Nations’ Framework Convention on Climate Change meeting, where crucial decisions were to be made regarding the inclusion of REDD in the next version of the Kyoto Protocol.

In the midst of this, Dorjee was presented with an opportunity to meet the decision-makers at a huge investment bank, Merrill Lynch at their HQ in London. They had their own carbon trading department, and they were interested in his project…

When the orangutans have been successfully rehabilitated, Lone releases them into protected forest areas far from human settlements. The process is delicate and logistically complicated, and requires considerable preparation.

After being medically checked and carefully caged, Lone’s former ‘patients’ were flown to a remote area, and returned to the wild. For a short time the orangutans were fed and supervised to ensure that they became habituated to their natural environment; then, they were able to return to the forest… their real home.

Outside Jambi, Achmadi eagerly awaited the delivery of his new seedlings from Governor Zul’s trial sustainability scheme. As requested by the Governor, Achmadi had joined forces with friends and family who owned land nearby in order to create a cohesive bloc where the trials could take place.

The whole point of the scheme was to stop the burning. Alas, the support provided by the Governor’s office fell spectacularly short of what was required – they ended up supplying Achmadi with a tiny woodchipper and a truckload of rubber tree saplings, which got bogged on the road to his farm. In Jambi, things were not moving forward at all.

From December 3 to 14 in Nusa Dua, Bali, the United Nations held their Framework Convention on Climate Change (aka COP:13), where the structure of the Kyoto Protocol and its post-2012 successor were discussed. The objective of the Protocol is the reduction of climate-change inducing greenhouse gas emissions. The conference brought together over 10,000 participants from 180 nations.

The hot topic at the convention was REDD: Reducing Emissions from Deforestation in Developing countries.

From Dorjee’s point of view, acceptance of REDD, (and consequently the application of avoided deforestation as a carbon offsetting mechanism), was a crucial issue. This would create the market infrastructure necessary for the involvement of investment banks… so for Dorjee's project, much was riding on the outcome of the conference.

At the Green Governors’ Gala, Dorjee brought together his Indonesian allies – Governors Irwandi and Bas with their Green counterpart from the Brazilian state of Amazonas, Governor Eduardo Braga.

At a special twilight event, the three Governors signed a joint treaty promising to protect their forests and explore Avoided Deforestation solutions.

In another coup for the forests, Governor Irwandi and Dorjee launched Aceh Green, which will monitor Acehnese forest areas, manage public awareness campaigns, and develop sustainable income sources for local people.

Aceh Green will protect 1.9 million acres of forest, home to endangered species including the Sumatran elephant, the clouded leopard, the Sumatran tiger, and the Sumatran orangutan.

After presenting his secretly filmed evidence of injured and displaced orangutans at COP:13, Hardi obtained his meeting with the Kalimantan governor, and had the opportunity to make the case for his endangered animal friends.

During the Bali Conference, the President of Indonesia launched the Indonesian Government’s orangutan protection program, with Australian environment minister Peter Garrett and Terri Irwin as guest speakers.

For signing the Kyoto Protocol as his first act as Prime Minister, the new Australia leader Kevin Rudd received prolonged applause from the world’s assembled representatives. Now, the only nation which had failed to join the Protocol was the USA.

Elsewhere at COP:13, Sir Nicholas Stern gave his assessment of the targets needed to avert climate catastrophe, and Al Gore stridently criticised his own country for lack of action and poor leadership.

In the closing hours of COP:13, the representatives reached an impasse, with the USA obstructing progress and getting booed by the plenary hall. The developing countries went on the offensive, pleading with the USA to show leadership or “get out of the way”.

The pressure on the two US delegates was enormous; eventually they capitulated and agreed to support the ‘Bali Roadmap’ – which outlined what would be discussed in developing the agreement which would replace the Kyoto Protocol in 2012. The room erupted in cheers. The world had agreed on one thing; a singularly important, historic moment.

With the Bali Roadmap approved with such drama, the vote for REDD was almost an anti-climax, and accepted unanimously. Dorjee now had the missing piece of the equation that could push his deal through. This has profound implications for the topical forests of the world and gives the orangutans renewed hope of survival.

The Garnaut Climate Change Review released its draft report on Friday, 4 July 2008. The Garnaut Climate Change Review is an independent study by Professor Ross Garnaut, which was commissioned by Australia's Commonwealth, State and Territory Governments. The Review was established on 30 April 2007.

The Review will examine the impacts of climate change on the Australian economy, and recommend medium to long-term policies and policy frameworks to improve the prospects for sustainable prosperity.

The Review's Final Report is due on 30 September 2008. A number of forums have been held around Australia to engage the public on various issues relating to the Review. Download a copy of the draft report from the Garnaut Review web page.