DENR to open forest areas to climate-smart investments

Business & FinanceEnvironment
6 Aug 2026 • 12:14 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

DENR to open forest areas to climate-smart investments

THE Department of Environment and Natural Resources (DENR) is opening suitable forest areas to responsible, climate-smart investments, projecting P38 trillion in production value from sustainable forestry between 2027 and 2052.

In a statement on Wednesday, the DENR said it will package “investment-ready” sites to generate rural jobs and livelihoods while safeguarding forest conservation under Department Administrative Order (DAO) 2026-34, which sets up a climate-informed system for identifying, evaluating and promoting forest investment opportunities.The order covers open-access production and protection forest lands, along with areas previously under expired or canceled tenure that have since been assessed for forestry development.Existing valid tenure instruments remain unaffected.“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 Cuna said, adding that the policy aims to turn forests into “engines of jobs, incomes and local enterprise.”The DENR-Forest Management Bureau (DENR-FMB) has identified about 1.18 million hectares of potential investment areas (PIAs) that could be developed through Sustainable Forest Land Management Agreements, covering tree plantations, agroforestry, grazing, ecotourism, renewable energy and other special forest uses.Once tenured, these areas are projected to generate roughly P4 billion in annual investment revenue.Agroforestry accounts for the largest share of identified areas at more than 550,000 hectares, followed by tree plantations and renewable energy projects.The PIAs span every region except Metro Manila, led by Eastern Visayas at 196,083.78 hectares; Caraga, 177,201.18 hectares; and the Davao Region, 144,035.25 hectares.Investments in tree plantations and agroforestry within these areas could generate the projected P38 trillion in production value over the 25-year period, the DENR-FMB said, underscoring sustainable forestry’s potential to draw investment, create jobs and drive growth while preserving the forests’ role in clean water, biodiversity and climate resilience.“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.The policy supports President Ferdinand Marcos Jr.’s job-creation agenda and aims to unlock the forestry sector’s economic potential, which currently accounts for just 0.2 percent of the economy based on forestry and logging activities, according to the Philippine Statistics Authority’s 2025 estimates at constant 2018 prices.To protect forest ecosystems, DAO 2026-34 bars incompatible activities such as sanitary landfills and housing or subdivision developments within forest lands.The DENR also plans to launch a forestry investment portal and promote investment-ready sites through forums, trade fairs, exhibitions, digital platforms and stakeholder engagements.
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