Peatland restoration and rewetting projects are a carbon-removal project type within the land & forests segment of the carbon market. They are designed to restore peatlands and rewet drained organic soils to reduce losses and rebuild ecosystem carbon. The carbon benefit comes from net climate benefit from restoring peat ecosystem carbon function and reducing ongoing losses. Common project configurations include Rewetting drained peatlands; restoration of degraded peat ecosystems.

Rewetting can rapidly reduce oxidation and fire risk, although long-term performance depends on hydrological control and land-use compatibility. These projects can protect large carbon stocks and important ecosystems, but their credibility depends heavily on baseline setting, leakage control, permanence, and the strength of social and land-rights safeguards. For buyers and program designers, the most important diligence questions are: How are hydrology and methane trade-offs handled? Is the credited outcome framed as removal, reduction, or both under the methodology?