A massive forestry investment pipeline worth up to P38 trillion is being developed as the government seeks to turn more than 1 million hectares of forest land into climate-resilient economic zones through responsible investments that could create jobs, expand rural livelihoods and protect natural resources over the next 25 years.

Under Department of Environment and Natural Resources (DENR) Administrative Order No. 2026-34, the agency will establish a science-based system for identifying and promoting suitable forest investment sites for projects such as agroforestry, tree plantations, renewable energy, ecotourism and grazing while ensuring environmental protection.

DENR Secretary Juan Miguel T. Cuna said the policy aims to unlock the country's underutilized forest resources without compromising sustainability.

Limited livelihood options

“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. “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.”

The DENR's Forest Management Bureau has identified about 1.18 million hectares of Potential Investment Areas that can be developed through Sustainable Forest Land Management Agreements. These areas are projected to generate around P4 billion in annual revenues, with agroforestry accounting for the largest share, followed by tree plantations and renewable energy projects.

The bureau estimates that investments in agroforestry and tree plantations alone could produce P38 trillion in economic value from 2027 to 2052, while supporting long-term growth, employment and climate resilience.

Not competing goals

“We want to show that protecting our forests and growing our economy are not competing goals,” Cuna said. “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.”

Unlike previous approaches, every investment site will undergo climate, economic and social assessments before being offered to investors. The DENR will also prepare detailed Forest Investment Portfolio Packages containing information on environmental conditions, business potential, accessibility and nearby communities to help investors evaluate opportunities.

The order excludes activities incompatible with sustainable forest management, including sanitary landfills and housing developments, while directing the DENR to establish a Forestry Investment Portal and promote investment-ready sites through trade fairs, investment forums and digital platforms.