The Department of Environment and Natural Resources (DENR) is opening more than a million hectares of suitable forest land to sustainable investments under a new policy that aims to generate jobs, strengthen rural economies, and expand the country’s forestry sector while maintaining environmental safeguards.
The initiative follows the issuance of DENR Administrative Order (DAO) No. 2026-34, which establishes a climate-informed framework for identifying and developing forest areas that can accommodate responsible investments.
The DENR said long-term investments in sustainable forestry, particularly in tree plantations and agroforestry, could generate an estimated P38 trillion in production value between 2027 and 2052, underscoring the sector’s untapped economic potential.
Environment Secretary Juan Miguel Cuna said the policy is intended to create livelihood opportunities in rural communities where forest lands have remained largely underutilized.
“For too long, many of our rural communities have struggled with limited livelihood options, even as vast forest lands around them remain underused,” Cuna said, adding that the government seeks to balance economic development with forest conservation through climate-smart investments.
The move also supports the government’s broader employment agenda. According to the Philippine Statistics Authority, forestry and logging activities accounted for only 0.2 percent of the Philippine economy in 2025, indicating significant room for growth.
Following the issuance of the order, the DENR’s Forest Management Bureau (FMB) identified around 1.18 million hectares of Potential Investment Areas (PIAs) that may be developed through Sustainable Forest Land Management Agreements.
The agency estimates these areas could generate about P4 billion in annual investment revenues from activities such as tree plantations, agroforestry, livestock grazing, ecotourism, renewable energy, and other approved forest-based enterprises.
Agroforestry makes up the largest share of the identified sites, covering more than 550,000 hectares, followed by tree plantation projects and renewable energy developments.
The identified investment areas are spread across all regions except the National Capital Region. Eastern Visayas has the largest share with 196,083.78 hectares, followed by Caraga with 177,201.18 hectares, and the Davao Region with 144,035.25 hectares.
Unlike previous approaches that mainly identified forest lands for development, the new policy requires every potential investment site to be packaged into a Forest Investment Portfolio Package (FIPP). Each package will include information on environmental conditions, climate risks, business potential, land status, accessibility, and nearby communities to help investors evaluate opportunities while ensuring compliance with sustainable forest management standards.
Before any project is approved, proposed investment sites must undergo environmental, economic, climate, and social assessments to determine whether developments are environmentally sustainable, economically viable, climate-resilient, and socially responsible.
The policy covers selected open-access production and protection forest lands, including suitable areas with expired or cancelled tenure agreements that have been evaluated for forestry-related development. Existing valid forest tenure holders will not be affected by the order.
To protect forest ecosystems, the DENR said developments that are incompatible with sustainable forest management—such as sanitary landfills and residential subdivisions—will remain prohibited within forest lands.
The department also plans to establish a Forestry Investment Portal and promote investment-ready sites through trade fairs, investment forums, digital platforms, and stakeholder engagements in an effort to attract both local and foreign investors.
Officials said the policy is designed to encourage long-term investments that generate employment and economic activity while preserving the ecological functions of Philippine forests, including biodiversity protection, watershed conservation, and climate resilience.