Philippines seeks early access to tropical forest fund as restoration financing needs rise

Traders Union
All News
Financial News
Philippines seeks forest fund

Highlights

The Philippines seeks early access to the Tropical Forests Forever Facility, aiming to secure fast-track restoration funding for its forests.
Despite regaining forest cover from 6.8 million hectares in 2010 to 7.22 million hectares in 2022, the country lost 1.42 million hectares between 2001 and 2022.
The facility, targeting $10 billion in capitalization by late 2026 with $7.3 billion already mobilized, will provide up to $4 per hectare to finance tropical forest preservation.

Fast-track entry into forest finance program

As reported by BusinessWorld Online, the Department of Environment and Natural Resources said the Philippines is ready to be among the first countries to tap the Tropical Forests Forever Facility and join its Fast Track Programme.

The agency said during New York Climate Week that the fund, which pays countries to keep tropical forests standing, would support the Philippines' forest restoration efforts. Analiza Rebuelta-Teh, environment undersecretary for Finance, Information Systems, Climate Change, and Administration, said the country is prepared to participate in the initiative.

She said the Philippines lost 1.42 million hectares of tree cover between 2001 and 2022 because of land conversion, urbanization and climate pressures. Over the same period, sustained national action helped reverse the trend, with forest cover growing about 6%, from 6.8 million hectares in 2010 to 7.22 million hectares in 2022.

Funding gap and national restoration effort

The government continues to restore degraded watersheds and protect vital ecosystems through the Enhanced National Greening Program and Community-Based Forest Management initiatives.

Citing the UNEP State of Finance for Forests report, Rebuelta-Teh said annual forest investment needs to rise from $84 billion to $300 billion by 2030. The Tropical Forests Forever Facility, officially launched at COP30 in Belém, Brazil, is intended to help close that gap by offering up to $4 per hectare for standing tropical forests.

The facility is targeting $10 billion in capitalization by late 2026, and more than $7.3 billion has already been mobilized. For the Philippines, early access could add external funding support to ongoing conservation and reforestation programs while aligning the country with a wider global effort to finance forest preservation.

In our earlier coverage of El Niño risks in the Philippines, we noted the central bank’s warning that a potentially severe weather event could hit farm output, keep food prices elevated, and prolong inflation pressures alongside higher oil costs. The piece also highlighted the policy challenge of supporting growth while managing inflation, with El Niño treated as a key risk factor in monetary decision-making.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.