Peatlands are one of the most important natural ecosystems in the world which have key values for biodiversity conservation, climate regulation and support for human welfare.

In South-East Asia, about 7 million ha of peatlands have been cleared and drained for agriculture and forestry in recent years. The oxidation of the desiccated topsoil results in 50 to 100 tonnes of CO₂ emissions per ha/year; or approximately 350-700 million tonnes/year. Fire spreads easily in drained areas and can last for months. Smoke from the peat fires spread throughout Southeast Asia causing an estimated US$10 billion worth of economic damage as well as affecting the health of millions of people. Peatland fires also destroy the carbon store built up over thousands of years. In 1997/98, flames engulfed about 2.2 million ha of peatlands in Indonesia, contributing 10-20% (1-2 billion tonnes) of the world's CO₂ emissions. By comparison, the global emission of CO₂ due to fossil fuels is 6.5 billion tonnes annually and the Kyoto Protocol aims at an annual reduction of only 100 million tonnes.

They cover over 400 million ha, occur in about 180 countries and represent a third of the global wetland resource. Currently they are degrading in many regions as a result of land clearance, drainage, fire and climate change. This not only causes a reduction in biodiversity and direct benefits for people - it is also generating further problems. The protection and wise use of peatlands should be a global priority.

All over the world, peatlands are degrading. Western Europe has already lost over 90% of its original functioning peatlands and central Europe over 50%. In Southeast Asia up to 70% of the tropical peat swamp forests have been significantly affected by logging, deforestation, drainage and agriculture. In southern and eastern Africa many peatlands have been converted to agriculture and remaining natural peatlands are under severe threat of conversion and degradation. Climate change models currently predict temperature rises of 8-10 degrees C over the next 100 years in North America and northern Russia which will likely impact millions of hectares of peatlands. Montane peatlands in Latin America, Africa and Asia are critical in the storage and supply of water and their degradation through drainage, grazing and climate change is affecting rural communities.

In the Flow Country in Scotland another man-made disaster occurred when thousands of hectares of unique peatlands were drained for forestry projects subsidised by tax incentives. Within a few years, the hydrology of the region was severely disrupted and streams and rivers stopped flowing, jeopardizing a multi-million dollar tourism and recreation fishing industry. Drainage and forestry operations were eventually halted and now expensive restoration projects have been initiated.

Drainage and consequent oxidation of peatlands have lowered the surface of many coastal peatlands all over the world, making them vulnerable to flooding. In the Netherlands, the land surface subsided in some peatland areas from 4 metres above sea level to 2 metres below sea level as a result of drainage. Coastal areas worldwide are becoming increasingly vulnerable to flooding with rising sea levels and increasing storm events, hence maintenance of coastal peatlands is all the more important. Drainage and intensive agricultural use have severely degraded areas of mineral-rich peatlands in Central and Eastern Europe and Eastern Asia, leading to abandonment and nitrogen-pollution of adjacent sea and inland waters.

Peatlands are the single largest terrestrial store of carbon (storing more carbon than the vegetation of the whole world and equivalent to 75% of all carbon in the atmosphere) and one of the best long-term stores. Therefore their continued degradation will accelerate global climate change. However, despite global concern about climate change, the destruction of peatlands is not yet recognised as part of the problem.