Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT  
TO PROMOTE REFORESTATION AND TO INCREASE WOOD PRODUCTION 
THROUGH THE ESTABLISHMENT OF TREE GROWING AGREEMENTS 
EXPLANATORY NOTE 
The Philippine forestry sector is in a dire situation. Forest cover is only at 7 
million (m) hectares (ha) or 23% of the country’s total land area. From 2013-2020, 
73% of tree cover loss, at 64,445 ha annual average, is found in natural forests.1 This 
is equivalent to 276 metric tons of CO₂ emissions. To worsen things, the country is 
one of the most vulnerable areas to adverse effects of climate change with an average 
of 20 typhoons annually, five of which are destructive. In terms of wood supply, the 
country is unable to meet its national wood requirements since 2006. From 2006-2020, 
there is an average deficit of 1.77m cubic meters of wood.2 This increased to  2m cubic 
meters of wood in 2010-2019. Of the available wood supply, 83% are imported.3 The 
sector’s contribution to the economy is minimal at an average of Php 2 billion or 0.04% 
from 2000-2021.4 Past and existing government reforestation and tree plantation 
1 Global Forest Watch. “Tree cover loss in Philippines”. Accessed on 12/12/ 2021 from 
www.globalforestwatch.org. 
2 Forest Management Bureau, “Plans and Programs for the Philippine Wood Industry.” Lecture, 
Philippine Wood Expo 2019, Sofitel Hotel, Pasay City, October 21, 2019. 
3Department of Natural Resources, “Situationer of Forestry Investment in the Philippines”, Facebook, 
November 17, 2021, https://www.facebook .com/DENROfficial/videos/1154495488408727. 
4 At constant 2018 prices. Philippine Statistics Authority (2021). National Accounts of the Philippines. 
Quezon City: Philippines Statistics Authority. 
October 7, 2022
9:00 am
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programs are insufficient to provide for the growing wood demands of the country. 
Although the government has been encouraging the establishment of tree plantations, 
private sector is hesitant to go into tree farm and plantation development. A major 
culprit is the insecure property rights in forest lands (State-owned lands). 
 
A solution is to guarantee the security of property rights in forest lands by:  1) 
establishing a Tree Growing Agreement (TGA) where the right to plant and harvest 
trees is respected; 2) treating planted trees as personal property where they can be 
personally owned at the moment they are planted; 3) establishing a Tree Plantation 
Advisory Council to serve as a national advisory council on tree farm and plantation 
development; 4) appropriating royalties and government share based on stumpage 
value to relevant stakeholders such as the national government, local government 
units, the tenure holders, the indigenous peoples, and the Department of Environment 
and Natural Resources; and 5)  providing incentives to TGA holders. This bill seeks to 
encourage tree planting more especially in the countryside. 
 
The proposed measure is expected to contribute to increasing the country’s 
forest cover that would act as carbon sink, mitigating the ill-effects of climate change 
by preventing severe flooding, landslides, and soil erosion, and enhancing carbon 
absorption. It would also protect the conservation areas and biodiversity, prevent the 
emergence of zoonotic diseases such as COVID-19, support energy production & food 
security, and provide spaces for health, wellness, and recreation. Moreover, the 
untenured 5.5m ha of production forest lands5 will be utilized in part or whole for tree 
farm/plantation development thereby increasing wood production. This is relevant in 
meeting the country’s wood demand, generating employment especially in the uplands 
where poverty and insurgency are rampant, supporting government infrastructure 
programs, and developing agroforestry and downstream wood industries such as 
furniture and housing construction.  
 
5 
Philippine 
Forestry 
Statistics 
2020,” 
Forest 
Management 
Bureau, 
https://drive.google.com/file/d/1zOlM24aUeBNV-qH8XNpo 1qiNt8g7NZ19/view. 


With the country’s natural endowments, a tropical climate with rainfall 
distributed evenly, and with rich soil condition favorable for forests to flourish, and a 
young population, with 70.62m people belonging to the working ages of 15 to 64 years 
old6 that could serve as labor pool for tree planting maintenance, the Philippines 
possesses the capacity to become a booming forest superpower as it used to be in 
the 1950s-60s. The State recognizes the crucial role of the private sector as its partner 
in revitalizing the forestry sector following sustainable forest management principles.  
 
In view of this, the early passage of this bill is sought. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 Ben O. de Vera, “World Bank: Young population to boost PH economic development” Philippine Daily 
Inquirer, May 20, 2021, https://business.inquirer.net/323229/world-bank-young-population-to-boost-ph-
economic-
development#:~:text=%E2%80%9CThe%20Philippines%20represents%20a%20young,million%20ag
e d%2065%20and%20above. 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT  
TO PROMOTE REFORESTATION AND TO INCREASE WOOD PRODUCTION 
THROUGH THE ESTABLISHMENT OF TREE GROWING AGREEMENTS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Tree Growing 
Agreements Act.” 
SECTION  2. Declaration of Policy. – It is the policy of the State to promote tree 
farm and tree plantation development to restore denuded forests of the public domain, 
mitigate the effects of climate change, increase wood supply, encourage green 
investments to increase livelihood opportunities in the countryside, and contribute to 
the overall socio-economic development and growth of the national economy. 
SECTION  3. Definition of Terms. – 
a. Carbon sequestration is the process of removing carbon from the
atmosphere and depositing it in a reservoir.
b. Carbon trader is a person or entity dealing with the buying, selling,
brokering, exchanging, and trading of carbon credits.
c. Carbon trading also known as carbon emissions trading, is the use of a
marketplace to buy and sell carbon credits that allow an entity to emit a
certain amount of carbon dioxide.
d. Crop is a plant or plant product that can be grown and harvested for profit
or subsistence.
e. Forest block is an area of contiguous forest land measuring fifteen (15)
seconds of latitude and fifteen (15) seconds of longitude at approximately
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20.7 hectares per block.  
f. Forest land includes the public forest, the permanent forest or forest 
reserves, forest reservations, and all other lands not classified as 
agricultural lands, mineral lands, and national parks. 
g. Planted Tree a tree planted and raised by man. 
h. Tree Farm refers to any small forest land or tract of land purposely planted 
for tree crops. 
i. Tree Growing Agreement refers to an agreement entered by and between 
a natural or juridical person and the DENR wherein the latter grants to the 
former the right to plant and harvest trees in a tract of forest land. 
j. Tree Plantation any tract of forest land purposely and extensively planted to 
timber crops primarily to supply the raw material requirements of existing or 
proposed processing plants and related industries. 
 
SECTION 4. Establishment of Tree Farms and Tree Plantations. – The 
Department of Environment and Natural Resources (DENR) shall identify, survey and 
map areas suitable for the establishment of tree farms and tree plantations in forest 
lands. Such areas shall be called Tree Growing Agreement Areas or TGA areas. TGA 
areas for establishment shall be denuded and/or underutilized areas within 
forestlands, whether tenured or not, including ancestral lands/domains, identified as 
suitable for tree farming, tree plantation development, agroforestry, and other forestry 
and agroforestry-related economic activities. TGA establishment may be initiated by 
the DENR or through a request of interested parties. 
 
SECTION 5. Criteria for the Determination of Tree Growing Agreement 
Areas. – The minimum requirements for suitability of the area for the TGA are: 
a. Soil quality should be suitable for tree plantation/tree farming, and 
agroforestry farming; 
b. Slope gradient should be below 50 percent, and elevation should be below 
1000m above sea level (asl); 
c. Should not be prone to landslides or severe soil erosion; and 
d. Should not be identified as protected area. 
 
 
SECTION 6. Identification and Delineation of Tree Growing Agreement 
Areas. – For purposes of identification and delineation of area for TGA, the DENR 
shall identify denuded, idle, and/or underutilized public forest that are either tenured 
or untenured. These identified areas of public forest shall be divided into meridional 
forest blocks of fifteen (15) seconds of latitude and fifteen (15) seconds of longitude at 
approximately 20.7 hectares per block. Such forest blocks shall be indicated in the 
maps publicly available in the Tree Growing Agreement Registry. 
 
 
SECTION 7. Tree Growing Agreement Registry. – Forest lands that had been 
established by the DENR as TGA area shall be recorded and made available in a 
public registry to be maintained at the Provincial Environment and Natural Resources 


Office (PENRO) and supervised by the Forest Management Bureau (FMB). Such 
registry shall be accessible to the public through the internet and shall contain maps 
showing the location of all forest lands under TGA and shall also indicate forest lands 
that are already under an agreement as well as those still available for application of 
investors.  
 
SECTION 8. Allowable Activities for the Tree Growing Agreement. –
Allowable activities within the Tree Growing Agreement area shall be limited to: 
a. Carbon trading activities 
b. Carbon sequestration and related activities 
c. Tree Plantation/Farming 
d. Wood Processing/Establishment of Wood Processing Plants 
e. Agroforestry  
f. Forestry/Agroforestry-Based Ecotourism 
 
SECTION 9. Tree Growing Agreement. – Interested parties whether natural 
or juridical, may enter into a Tree Growing Agreement for the development, 
sustainable utilization, and management of TGA areas and forest resources within the 
allotted TGA area.  
 
The Agreement shall be for a minimum of two production cycles depending on 
the project as proposed in the development plan to be submitted to the DENR upon 
application for a TGA. The duration of the production cycle shall depend on the species 
intended to be planted as a main crop. Each cycle shall not exceed twenty-five years. 
 
The Agreement may be renewed automatically at the option of the TGA holder 
for another minimum of two production cycles if the TGA holder has complied with the 
terms and conditions of the Agreement and with existing laws. 
 
The TGA is transferrable to qualified transferees for value. The Agreement may 
not be cancelled except for cause and with due process by the DENR. The Agreement 
holder shall develop at least 30% of the area applied for in the first three (3) years and 
utilize seventy-five (75%) of the area within five (5) years upon issuance of the TGA. 
Ninety percent (90%) of the TGA area must be devoted to the primary timber or tree 
crop compatible to the ecological and biophysical characteristics of the area. 
 
Processing of applications and awarding and issuance of TGA shall be 
accomplished at the Provincial Environment and Natural Resources Office (PENRO) 
of the DENR and completed within 120 days from the time the complete application is 
submitted.  
 
Tree Growing Agreements shall be limited to a maximum of 25 forest blocks for 
individuals/families, 50 forest blocks, for partnerships and cooperatives, and 250 forest 


blocks for private and public corporations including local government units (LGUs) and 
government-owned and controlled corporations (GOCCs). 
 
SECTION 10. Tenured Lands. – Forest lands covered by existing tenurial 
instruments may be amended to be covered by the Tree Growing Agreement. Such 
amendment shall be applied for at the DENR.  
 
Tenure holders who are no longer interested in their tenure may surrender their 
tenure to the DENR. They may also transfer such tenurial instrument to an interested 
party for conversion to TGA. Tenure holders who refuse to utilize or abandon their 
tenurial area may be subjected to compulsory inclusion after being notified.  
 
A Notice of Inclusion under the TGA shall be issued by DENR to inform tenure 
holders of compulsory coverage of the whole or portion of their unutilized or 
abandoned tenured areas. 
 
SECTION 11. Qualifications of Applicants.  – Any natural or juridical person 
may apply for a Tree Growing Agreement. LGUs and GOCCs may also apply for the 
said Agreement. Likewise, Agreement shall be awarded transparently and equitably 
to both foreign and domestic investors. 
 
SECTION 12. Certifications, Permits and Licenses. – The DENR PENRO 
shall also coordinate with the Environmental Management Bureau (EMB), National 
Commission on Indigenous Peoples (NCIP), LGUs, and other government agencies 
for assistance in the expedited issuance of environmental permits, local permits, 
Certification Precondition (CP), and other permits. 
 
SECTION 13. Property Rights of TGA Holders. – All planted trees, and other 
non-timber forestry and agroforestry products produced within TGA areas shall be 
considered as personal property even if they are still attached to the soil. They shall 
also be considered as personal property of the holder within the purview of Republic 
Act No. 11057, otherwise known as the Personal Property Security Act, and thus may 
be traded or may be a subject to commodity contract, mortgage contract, and other 
security arrangement.  
 
All planted trees and other non-timber forestry and agroforestry products 
produced within the TGA areas shall be considered as crops. 
 
SECTION 14. Relaxation of Restrictions and Regulations. – In order to 
promote investments and generate interest in forest-related activities within the TGA 
areas, existing laws, executive issuances, local ordinances, rules and regulations are 
hereby repealed, amended, and modified accordingly for holders in order to: 
a. Provide access to development loans from public financial institutions for 
farm and plantation developers;  


b. Provide insurance coverage of plantations and plantation development 
equipment by the Philippine Crop Insurance Corporation (PCIC); 
c. Allow all the expenses incurred in the first five years of development, 
operation, and allowable activities within tree plantations to be regarded as 
ordinary and necessary expenses or as capital expenditure for taxation 
purposes; 
d. Prioritize access for tree farm and plantation developers to credit assistance 
from government-owned, controlled and/or supported financial institutions; 
e. Allow acceptance of planted trees and crops as collateral for loans in 
government-owned or controlled  banks and other financial institutions; 
f. 
Allow only a one-time inspection by the DENR PENRO prior to harvest of 
planted trees leading to a single clearance for harvest, processing, transport 
and sale both local and international; 
g. Exempt established tree farms and plantations from logging bans for the 
duration of the Agreement;  
h. Allow logs, lumber and other finished wood products from TGA area to be 
exported without restrictions in volume;  
i. 
Include carbon trading and carbon sequestration activities in various 
investment and tax incentives; 
j. 
Include tree farming and plantation development as pioneer areas of 
investment under the Strategic Investments Priority Plan of the government;  
k. Include tree farming and plantation development in tax incentives as may be 
provided by existing rules and regulations of different government agencies 
including but not limited the Department of Finance and Department of Trade 
and Industry; and 
l. 
Include tree farming and plantation development in other investment 
incentive packages available for agriculture and agroforestry-related 
industries. 
 
Provided that, relevant incentives shall also apply to private tree plantations 
registered with the DENR. 
 
SECTION 15. Royalties and Government Share. – Royalties and government 
share shall be based on the stumpage value of planted trees. Stumpage value shall 
be computed by the DENR using a formula developed with the approval of the Tree 
Plantation Promotion and Policy Board.  
 
Royalties and government share shall be based on the 70% of gross revenues 
of the Agreement holder. The government shall get five percent (5%) royalty, the 
tenure holder for tenured lands shall get one percent (1%), the concerned LGU where 
the TGA area is located shall get five percent (5%), if there are indigenous peoples in 
the area, two percent (2%) shall be allotted to them, and the remaining two percent 
(2%) shall go to DENR’s tree farm and plantation development programs and projects 
and carbon trading activities. 


 
SECTION 16. Dispute Resolution Mechanism. – Disputes arising from 
conflicting claims and other controversies related to the issuance and the 
implementation of the TGA shall be resolved administratively in the first instance at 
the DENR.  
 
Any and all disputes arising from the implementation of TGA may be submitted 
to arbitration in the Philippines in accordance with the relevant laws and policies. The 
process of arbitration shall be incorporated as a provision in the TGA that will be 
executed pursuant to the provisions of this Act: Provided, that by mutual agreement, 
the parties may agree in writing to resort to alternative modes of dispute resolution. 
 
SECTION 17. Premature termination of the agreement. – Upon the 
premature termination of the agreement at no fault of the holder, all depreciable 
permanent and semi-permanent improvements such as roads, buildings, and 
nurseries including the planted and standing trees and other forest crops, introduced 
and to be retained in the area, shall be properly evaluated and the holder shall be 
entitled to a fair compensation thereof, the amount of which shall be mutually agreed 
upon by both the DENR and the agreement holder, and in case of disagreement 
between them, by arbitration through a mutually acceptable and impartial third-party 
adjudicator. 
 
 
SECTION 18. Tree Plantation Advisory Council. – The Tree Planation 
Advisory Council, referred to as the Council, is hereby created which shall act as a 
national advisory council in the development of policies related to tree farms and 
plantations.  
 
       
The Council shall be composed of one representative each from: 
a. Department of Environment and Natural Resources (DENR); 
b. Department Of Trade Industry (DTI); 
c. Climate Change Commission (CCC); 
d. National Commission In Indigenous Peoples (NCIP); 
e. Tree Farmers and People’s Organizations; 
f. 
Carbon Traders ; 
g. Professional Organization of Foresters; And 
h. Wood Producers and Processors. 
 
The DENR Secretary shall organize and appoint members of the council. The 
DENR shall act as the secretariat of the council and provide logistical support.  
 
 
 
SECTION 19.  Implementing Rules and Regulations. – The FMB of DENR 
shall promulgate rules and regulations to carry out the provisions of this Act within 120 
days from approval hereof. 
 


SECTION 20. Repealing Clause. – All laws, decrees, executive order, 
executive issuances or letters of instruction, rules and regulations or any part thereof 
inconsistent with or contrary to the provisions of this Act are hereby deemed repealed, 
amended or modified accordingly. 
 
SECTION 21. Separability Clause. – If, for any reason or reasons, any part or 
parts of this Act shall be declared unconstitutional or invalid by any competent court, 
other parts of this Act not so declared shall continue to be in full force and effect. 
 
SECTION 22. Effectivity Clause. – This Act shall take effect fifteen days (15) 
after its publication in two (2) newspapers of general education 
 
Approved,