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BusinessWorld Economy

DENR sees potential P38T in forestry investments

THE Department of Environment and Natural Resources (DENR) said it will open up suitable forest land for investment, adding that forests could generate up to P38 trillion from parties interested in developing them. Sustainable forestry investments are projected to generate P38 trillion in production value from 2027 to 2052, specifically from agroforestry and tree plantation […]

Context & Analysis

For Philippine businesses, the DENR’s forestry focus is less about timber than about positioning the country for a longer-term agricultural and industrial value chain. Forests have historically been treated as protected public space, a constraint on mining, infrastructure, and large-scale farming. If mixed-crop and tree-based farming models can be developed without triggering deforestation or land-grabbing concerns, companies may see an opportunity to build supply chains around fruit trees, coconut products, industrial wood species, carbon credits, bio-based materials, and nature-linked tourism.

The timing matters because global buyers are increasingly demanding traceable, sustainable sourcing for food, packaging, furniture, and renewable materials. Philippine firms that can prove environmental compliance, community benefit-sharing, and stable land access may gain an edge in export markets where premiums are tied to certification and low-carbon claims. For domestic investors, the story also intersects with infrastructure, logistics, and climate adaptation: tree-planting projects require roads, water management, seedling supply, processing facilities, and insurance products that can withstand typhoons and drought. For ordinary consumers, the payoff may be slower, appearing over time as more local food ingredients, packaging materials, and nature-based services are developed.

The main risks are regulatory clarity and social acceptance. Forest lands have a long history of overlapping claims involving local communities, indigenous peoples, past logging arrangements, and informal settlers. Any investment framework that does not map boundaries, secure tenure, and distribute benefits transparently could face litigation, protests, or policy reversals. Watch for implementing rules, which areas will qualify, concession periods, environmental safeguards, and whether private developers must partner with local cooperatives or government agencies. If the program is structured well, it could become a quiet growth sector; if handled clumsily, it may repeat the familiar cycle of boom, backlash, and stalled projects.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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