A review of opportunities and constraints to forest financing in the Philippines

Issue Date

2009

Abstract

This paper discusses forest financing opportunities and constraints in terms of existing mechanisms in the Philippines and probable instruments and innovative investment schemes to implement sustainable forest management (SFM), to increase the forest cover as well as to address forest degradation. It drew and distilled key insights from two materials: the background documents for, and the discussions that ensued during the Philippine National Forestry Forum, and a working paper on national financing strategies for sustainable forest management published by the FAO. The paper describes the current conditions confronting investment decisions in the forestry sector starting with the situation of the country's forest resources and the potentials of the forestry sector to address forest degradation and accelerate reforestation efforts. It then presents the constraints and opportunities that affect investments in the forestry sector, existing policies that support forestry financing, mechanisms and instruments, as well as financing sources available for investments in forestry. A number of case experiences were cited to show the viability of some of these mechanisms and instruments. The paper concludes that there is a need to explore other possible financing mechanisms for the Philippines' forestry sector instead of merely relying on government financing and Official Development Assistance (ODA). A national forest financing strategy is an imperative to strengthen existing policies and laws to bring the country's forest under SFM as well as to address forest degradation and increase forest cover. This forest financing strategy should include enabling socio-political, economic and institutional conditions the facilitate the success of investment initiatives. The paper also identifies the capital market as having the most potential to provide the much needed financing for the forestry sector.

Source or Periodical Title

Ecosystem & Development Journal: A Journal on Tropical Forests and Natural Resources

ISSN

2012-3612

Volume

2

Issue

1

Page

2009

Document Type

Article

Physical Description

tables; illustrations; graphs

Language

English

En – AGROVOC descriptors

FOREST MANAGEMENT; FINANCING; INVESTMENT; CAPITAL MARKET; PHILIPPINES

This document is currently not available here.

Share

COinS