The Philippines holds immense potential to become a leader in forest-based carbon development. With over 15.8 million hectares of forest lands, our country is endowed with a natural asset that can deliver climate, ecological, and economic dividends. Yet this potential remains largely unrealized as we still lack a coherent, overarching policy on land governance and carbon rights.

This issue took center stage at a recent forum of the CarbonPH Coalition, held at the Aboitiz Tech Space at the Asian Institute of Management. Experts from the Foundation for Economic Freedom joined environmental stakeholders from the private sector in highlighting the barriers that stand in the way of large-scale carbon investments: unclear land ownership, short-term leases, and the absence of a law that says who really owns the carbon stored in our forests. Without clarity, investors stay away, projects stall, and communities lose opportunities.

The truth is simple: property rights matter. When rights are clear, people and companies feel confident to invest. When ownership is respected, carbon credits stop being an abstract concept and become real assets that can be sold, traded and used to support livelihoods.

We’ve seen some progress. The new 99-Year Lease Law (Republic Act 12252) now allows long-term projects, giving investors more security than the old 25-year limit. But more reforms are needed. A Forest Cadastre, or an official map and database of who controls which forest lands, would prevent overlapping claims and attract serious investors. And a Carbon Rights Bill is essential so that carbon credits are legally recognized as property — just as countries like Australia, New Zealand and Canada have already done.

One clear takeaway: we look forward to decisive action from the Department of Environment and Natural Resources in issuing an administrative order on forest carbon projects. While Congress works on long-term legislation, such a directive would provide the clarity needed for investors to move forward. We cannot wait for perfect solutions when practical steps like policy guidance are within reach. Progress over perfection. 

The urgency becomes sharper when viewed through the lens of Article 6 of the Paris Agreement, which envisions a global marketplace for carbon credits. To participate credibly, the Philippines must demonstrate integrity — clear rules, transparent ownership and robust governance. Without these, our country risks being sidelined, even as ASEAN neighbors move ahead with harmonized standards through the ASEAN Carbon Credit Framework.

With secure tenure and carbon rights, companies can invest with confidence in reforestation, agroforestry and other nature-based solutions. These projects create high-quality credits, strengthen climate resilience, and open new livelihood opportunities. They also safeguard against double counting and align with international standards, ensuring the Philippines can compete on the world stage.

The Philippines has the forests, the talent, and the urgency to lead. What we need now is decisive action: secure land rights, pass carbon policies, and strengthen partnerships between government, business, and communities. Done right, our forests can power not just climate ambition, but also inclusive and sustainable growth.