The Department of Environment and Natural Resources (DENR) will tap forestry investments that are projected to generate ?38 trillion in production value from 2027 to 2052 by opening suitable forest lands to responsible climate-smart investments.
In a statement issued on Wednesday, the DENR cited Administrative Order (DAO) No. 2026 34, which establishes a climate-informed system for identifying, evaluating, and promoting forest investment opportunities. This shift is aimed at creating more jobs and livelihood opportunities while ensuring that forest conservation and economic growth advance together.
‘For too long, many of our rural communities have struggled with limited livelihood options, even as vast forest lands around them remain underused,’ Environment Secretary Juan Miguel T. Cuna said.
‘Through this new policy, we are opening suitable forest areas to responsible, climate-smart investments so that forests become engines of jobs, incomes, and local enterprise,’ he added.
Boosting presidential directive
According to the DENR statement, this policy will help achieve the call of President Ferdinand Marcos Jr.’s directive to create more jobs by tapping the economic potential of the country’s forestry sector.
Currently, the sector accounts for only 0.2 percent of the Philippine economy based on forestry and logging activities, the statement pointed out, citing a Philippine Statistics Authority 2025 estimate, which it based on constant 2018 prices.
‘We want to show that protecting our forests and growing our economy are not competing goals. With science-based planning, climate resilience, and strong safeguards, we are creating investment-ready sites that generate real work for Filipino families while ensuring that our forest resources are cared for and sustained for generations,’ Cuna said.
Following the issuance of the administrative order, the Forest Management Bureau of the DENR has identified about 1.18 million hectares of potential investment areas (PIAs) that can be developed through sustainable forest land management agreements (SFLMAs).
Once tenured, these areas are projected to generate about P4 billion in annual revenue from investments in tree plantations, agroforestry, grazing, ecotourism, renewable energy, and other special forest uses.
Agroforestry accounts for the largest share of the identified investment areas, covering more than 550,000 hectares, followed by tree plantations and renewable energy projects.
The PIAs are located across all regions of the country except the National Capital Region, with the largest area being in Eastern Visayas at 196,083.78 hectares, followed by Caraga with 177,201.18 hectares, and the Davao Region with 144,035.25 hectares.
The FMB further projects that investments in tree plantations and agroforestry within PIAs could generate about P8 trillion in projected production value from 2027 to 2052.
According to the DENR statement, this projection shows the long-term potential of sustainable forestry to attract investments, create jobs, and stimulate economic growth. But at the same time, it will ensure that Philippine forests will continue to provide clean water, biodiversity, climate resilience, and other vital ecosystem services for present and future generations.
Portfolio package required
The statement pointed out that previous approaches simply identified forest lands for possible development. The new policy goes a step further by requiring each investment site to be packaged into a Forest Investment Portfolio Package (FIPP).
This portfolio package should include information about the land – its environmental condition, climate risks, business potential, accessibility, land status, and nearby communities.
These investment packages will help prospective investors make informed decisions while ensuring that development remains consistent with sustainable forest management.
‘Before any site is offered for investment, it must undergo climate, economic, and social assessments to ensure that proposed projects are environmentally sound, economically viable, climate-resilient, and socially responsible,’ the DENR statement stresses.
The order covers open-access forest lands and other suitable areas with expired or cancelled tenure instruments that have been assessed for forestry-related development. Existing valid forest tenure instruments remain protected and not affected by the new policy.
To safeguard forest ecosystems, the order bans investment activities incompatible with sustainable forest management, including sanitary landfills and housing or subdivision developments within forest lands
It also directs the DENR to establish a Forestry Investment Portal and actively promote investment-ready sites through investment forums, trade fairs, exhibitions, digital platforms, and stakeholder engagements.