The Department of Environment and Natural Resources (DENR) is opening more than 1.18 million hectares of forest land to sustainable investments under a new policy that seeks to expand economic opportunities in rural areas while ensuring that environmental safeguards are implemented and in place.

In a news release on Wednesday, Environment Secretary Juan Miguel Cuna said that DENR Administrative Order (DAO) 2026-34 sets out the process for identifying and evaluating forest areas that may be offered for investment in agroforestry, tree plantations, ecotourism, renewable energy, grazing, and other approved forest uses.

“For too long, many of our rural communities have struggled with limited livelihood options, even as vast forest lands around them remain underused,” he 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,” he added.

Cuna said the department wants forest lands suitable for development to provide more forest investment opportunities for nearby communities, creating more jobs while ensuring that forest conservation and economic growth advance together.

Under the new policy, the DENR will first study and identify forest areas appropriate for projects such as tree farming, agroforestry, ecotourism, renewable energy, and grazing.

Before any project is approved, the order states that the area must be checked to ensure that it is environmentally safe, can withstand climate risks, is financially viable, and will benefit nearby communities.

The policy does not affect existing valid forest tenure agreements, and also bans developments that could harm forests, such as sanitary landfills and housing or subdivision projects.

The DENR is also required to make information on investment-ready sites available to potential investors.

Cuna said the order supports President Ferdinand R. Marcos Jr.’s directive to create more jobs by expanding opportunities in the forestry sector, which contributed just 0.2 percent to the Philippine economy in 2025 based on forestry and logging activities, according to Philippine Statistics Authority estimates at constant 2018 prices.

The DENR’s Forest Management Bureau (FMB) has identified about 1.18 million hectares of Potential Investment Areas (PIAs) that may be offered through Sustainable Forest Land Management Agreements (SFLMAs).

Once tenured, the bureau said these areas could generate around PHP4 billion in annual investment revenue.

The DENR said that agroforestry accounts for the largest share of the identified areas at more than 550,000 hectares, followed by tree plantations and renewable energy projects.

The PIAs are spread across all regions, except the National Capital Region, while Eastern Visayas has the largest identified area with 196,083.78 hectares, followed by Caraga with 177,201.18 hectares, and the Davao Region with 144,035.25 hectares.

The FMB also projects that investments in agroforestry and tree plantations within the identified PIAs could generate about PHP38 trillion in production value from 2027 to 2052.

The projection, the agency said, highlights the long-term potential of sustainable forestry to attract investments, create jobs, and stimulate economic growth while ensuring that Philippine forests continue to provide clean water, biodiversity, climate resilience, and other vital ecosystem services for present and future generations.

Cuna said the department sees forest protection and economic development as complementary goals.

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

Meanwhile, he also assured the public that DAO 2026-34 prohibits investment activities incompatible with sustainable forest management

The DENR said it will also establish a Forestry Investment Portal and promote investment-ready sites through investment forums, trade fairs, exhibitions, digital platforms, and stakeholder engagement activities. (PNA)