Imagine a Philippines where planting a tree doesn’t just capture carbon but creates jobs, shields communities from storms, revives wildlife habitats, and turns our natural wealth into lasting prosperity. That future is within reach, and the private sector working closely with the Department of Environment and Natural Resources (DENR) is key to getting the rules for forest and blue carbon projects right.
The stakes could not be higher. The Philippines is competing with dozens of countries for private capital to fund climate solutions. Investors have choices. They will go where rules are clear, timelines realistic, and incentives real. If a framework is unclear, duplicative, or in conflict with existing laws, those investments — and the benefits they bring — will flow elsewhere.
Clarity is key. Aligning our terms with international carbon standards can reduce duplication of reports, prevent confusion over definitions, and free up more time and resources for protecting forests.
Equally important, the DENR Administrative Order (DAO) on Forest Carbon is best designed to complement existing tenurial rights. Building on established frameworks ensures that both investors and communities can navigate processes more efficiently, without repeating requirements or incurring unnecessary costs.
We’ve already seen how forward-thinking initiatives like the Sustainable Forest Land Management Agreement (SFLMA) and the DENR’s Potential Investment Area (PIA) for forest lands have encouraged private sector participation in environmental projects. These programs prove that when policy is investor-friendly and well-aligned with stakeholder needs, capital flows in.
The upcoming DAO can be shaped in the same spirit by encouraging investments in carbon projects.
Long-term security is also vital. To meet global market requirements, tenurial agreements should extend beyond 25 years. Leading international certification bodies set a minimum of 40 years for forest carbon projects to ensure permanence, an essential factor in maintaining credibility and attracting investment.
The scope should also extend beyond land-based forests. Mangroves, wetlands and other blue carbon ecosystems and methodologies to store huge amounts of carbon and protect coasts from storm surges. Including them would expand environmental impact, ensure scientific-integrity, investment-readiness and open new opportunities of these coastal carbon assets.
The policy should also play to everyone’s strengths. Many rural communities are committed to conservation, but expecting them to finance and manage complex carbon projects on their own is unrealistic. Project developers can handle the project design and implementation, complex financing, and technical compliance, while communities focus on the project stewardship such as planting, protecting, and monitoring, which are roles they’re already great at.
Timelines are another sticky point. As it stands, projects are expected to secure agreements and community consent within a year, even though these processes often take much longer and involve multiple agencies. More realistic deadlines would keep promising projects from collapsing simply because the clock ran out.
For ongoing projects, a little flexibility goes a long way. Requiring “early mover” projects to start from scratch risks erasing years of work and discouraging investors. Recognizing existing approvals while gradually aligning them with new requirements would preserve both momentum and trust.
Fine-tuning incentives is equally important. If the aim is to draw private investment into climate action, the rules should offer clear benefits such as tax breaks, faster approvals, or shared-risk funding models.
DENR has a great opportunity to set the stage for real climate leadership. By building on the successes of programs like the SFLMA and the DENR’s PIA for forest lands, and aligning the DAO with these principles, the Philippines can attract world-class investment, empower communities, and turn its forests and coastlines into engines of resilience and growth.