Logged out - cecphils.org · CeC. it gives an update on current trends in the state of Philippine forests, examines policies and programs which have contributed to this situation,

Logged out

the Crisis of PhiLiPPine forest PoLiCy

L o g g e d o u t

the Crisis of Philippine forest Policy

L o g g e d o u t

A publication of the

Center for Environmental Concerns Philippines

the Crisis of Philippine forest Policy

Logged out: the Crisis of PhiLiPPine forestry PoLiCyCopyright 2015 by the Center for environmental Concerns-Philippines

The Center for environmental Concerns-Philippines is a seC-registered non-government organization promoting patriotic, scientific, and people-oriented environmental education, research, and advocacy work with grassroots communities and sectors.

executive director: frances Q. Quimpooffice Address: #26 Matulungin street, Barangay Central, diliman,

Quezon City 1100 PhiLiPPinestelefax: (632)920.9099Web: www.cecphils.orgemail: [email protected]

A publication of theCenter for environmental Concerns-Philippines

editor: Lisa itoWriting and research: Mila Pasion, Januar ong, Peter Benaires, Lisa ito, Cheamson BoongalingLayout: r. Jordan P. santosCover design: r. Jordan P. santosPhoto credits: CeC, Kalikasan People's network for the environment, r. Jordan P. santos

This publication was produced with the support of

This publication may not be reproduced or transmitted without written permission from the publisher.

isBn: ________________

tAbLe of Contents

IntroductIon

Philippine Forests and the Failure of Policy......................................................................................5

I. uncoverIng the crIsIs

trends in Forest degradation and resource Loss...........................................................................9

II. A hIstory oF PLunder

timeline of Philippine Laws and Policies contributing to deforestation........................................19

III. ProbIng the LoggIng Industry

Impacts of Logging on Philippine Forests.....................................................................................31

Iv.the FAILure oF PoLIcy

Flaws in government Forestry Laws and Permit systems.............................................................43

v. emergIng PoLIcy chALLenges

Impacts of climate change and mining on Forests........................................................................57

vI. A Pro-PeoPLe And Pro-Forest PoLIcy

recommendations for Forest resource management...................................................................63

AFterword ................................................................................................................................71

reFerences ................................................................................................................................74

Annexes .....................................................................................................................................76

6

Logged out: the Crisis of Philippine forest Policy

7

introduCtionPhiliPPine Forests and the Failure oF Policy

forests are vital for life on earth. They do not just provide scenic beauty, but have many larger functions important to our very survival and sustenance. They are home to the most diverse

biotic communities and species worldwide, many of which remain to be discovered. The world’s forest ecosystem, covering 30% of the total global land area or about 40 million hectares (fAo, 2005) is a vast source of food, water, medicine, and shelter for the people and, on a larger scale, a regulator of our climate cycles and slope stabilization. The large-scale destruction and degradation of this ecosystem has far-reaching impacts. it is of utmost importance that this vital resource be preserved and conserved.

Philippine forests are considered as among the richest worldwide in terms of biodiversity, being home to over 9,253 plants, 167 mammals, 535 birds, 237 reptiles, and 89 amphibians alone. Comprising 70% of the country’s land area over a century ago, forest cover has rapidly receded to less than a fraction of the total expanse, dropping to a range of 23% or 7.168 million hectares based on latest government data (denr-fMB, 2003) to as low as 6.6% as estimated by conservation groups. numerous disasters related to deforestation occur nearly every year and attest to the magnitude of damage that decades of unabated logging have caused.

there are many factors which should be considered in assessing the country’s dismal state of deforestation. A major concern is the failure of both forest policy and practice to ensure forest

8


protection, management and development. the Philippine government has implemented many forest protection policies, programmes, strategies and projects over the years. however, in reality, these initiatives do not attain their proclaimed objectives because of the inadequate, poor, and flawed character of both policy and implementation. the institutions primarily responsible for administering forest resource management have not been equipped to fully address these problems with stakeholders.

there is a need to respond to the crisis of deforestation in the Philippines in view of current realities and emerging trends. this publication is the culmination of a series of researches pursued by CeC. it gives an update on current trends in the state of Philippine forests, examines policies and programs which have contributed to this situation, and forwards policy recommendations addressed to stakeholders and legislators alike. We hope that this research can be of use to people’s organizations, decision-makers, and environmental advocates in promoting the protection and rehabilitation of Philippine forests and pushing for genuinely sustainable and pro-people policies.

Research, Education, and Advocacy Unit Center for environmental Concerns - Philippines

10


11

i. unCovering the Crisis trends in Forest degradation and resource loss

the Philippine forests are among the most diverse yet the most endangered in the world. They are a marvel of biodiversity: serving as the habitat and food supply for the numerous species

of plants and animals endemic to the Philippines, including around 12,000 native plants, 165 species of mammals, 570 bird species, more than 1,100 terrestrial vertebrates and more than 13,000 plants (A.C Baja-Lapis & M.L. santander, 2003). Around 20 million filipinos live and are dependent on the forested uplands, according to the un fAo (2000).

the Philippine forest, however, has been in crisis ever since the country’s original forest cover breached its threshold level midway in the 1930s and plunged even lower in the following decades, leaving parts of the country deforested and highly vulnerable to disasters.

this chapter outlines the various trends contributing to forest cover loss and the continuing destruction and degradation of the country’s few remaining forests.

ALArming deCLine At the beginning of the 1900s, Philippine natural forests were abundant, covering around 21 million ha or around 70 percent of the country’s total land area of around 30 million ha. As of 2009, 15.8 million hectares or 53 percent of Philippine lands were classified as forest lands (Philippine forestry statistics). the remaining 14.2 million hectares are classified as alienable and disposable lands.

12


yet in the span of one century alone, this vast green cover has rapidly disappeared. By the 1970s, only 34% of natural forests remained (see figure 1). By 1987, this further decreased to 22%. By 2000, natural forest cover was estimated to have dropped to as low as 15% of the total forest land area, concentrated mostly in Palawan, Mindanao, and the upland areas of Luzon. Most of the few remaining forestlands are in mountainous areas which face severe erosion problems. the last forest resource inventory conducted by the government pegged Philippine forest cover at 6.6 million hectares, indicating that the remaining 10.8 million hectares out of a previous estimate of 17.4 million hectares of classified forest lands have already been degraded.

official government data in the past decade estimate forest cover to be increasing slightly. in 2003, for instance, a joint project between the denr-forest Management Bureau (fMB) and the national Mapping and resource information Authority (nAMriA) estimated forest cover at 7.168 million hectares or 23.89% of the total land area —an incredible rise from the figure of previous years.1 on the other hand, latest estimation of forest cover by fAo (2010) is about 7,665,000 hectares or 25.7% of the Philippines’ total land area, of this 11.2% (861,000) was classified as primary forest. the increase is due to a change in the definition of forest cover more than an actual expansion of forest lands. the government redefined the official definition of forests in 2000, expanding the definition of forests to include plantations. While forest plantations may have significantly contributed to the increase in forest cover, they are not seen as the most appropriate habitat for indigenous species.

Continuing deforestAtion however the government would now define forest cover to be, the fact remains that Philippine forest cover, as earlier defined (Bautista,1990), continues to decline at a steady rate. despite efforts by the government to reorient the management of

1the 2003 fMB-nAMriA study covered 2.47 million hectares of closed forest, 4.28 million hectares of open forest and

297,160 hectares of forest plantations. of the identified forest cover, 6.432 million hectares (89.73%) are within forest lands

while 0.737 million hectares (10.28%) are within alienable and disposable (A&d) lands.

definition of terms

A forest is a piece of land with tree crown cover (or equivalent stocking level) of more than 10 percent and area of more than 0.5 hectares (ha). the trees should be able to reach a minimum height of 5 meters (m) at maturity in situ (denr 2005)

A natural forest is a forest composed of indigenous trees not planted by humans

Open and closed forests are classified based on crown cover. An open forest consists of 51-80% crown cover and a closed forest consists of 81-100% crown cover (national Forest Inventory)

A plantation is an artificially established forest where crops are grown for sale. It is generally intended for production, composed of introduced species and not generally important for native biodiversity

Watershed reserves are areas which have been a subject of the present system of classification and declared to be needed for protection

Shifting cultivation (kaingin) involves the cutting down and burning of plant growth, followed by the planting and harvesting of crops. Farming is conducted until soil fertility is exhausted and the kaingin farmers move on to other areas. In this condition, the fields are left fallow for a sufficient period until soil fertility and vegetative growth return

13

figure 1.1 forest Loss from the 20th Century to 2010.

Source: Key conservation sites in the Philippines (haribon and birdlife International, 2001)

forestlands through social forestry starting in 1974, deforestation remains a prevalent problem. in the 1970s, the deforestation rate was estimated at around 350,000 ha lost per year. this decreased to almost 200,000 hectares between 1990 and 1991 and to 100,000 ha per year at present.

According to the delegation of the european Commission to the Philippines in 2008, Philippine forest cover loss is estimated at 2.1% every year from 2000 to 2005, making the country the second in southeast Asia with the fastest forest cover loss and the seventh worldwide. More conservative studies peg the Philippines’ deforestation rate per year at 1.98% (fAo,2005) to 1.4% (AdB, 2000).

Many of the forest areas are also watershed reserves, and degradation and deforestation cause negative impacts on their quality. Currently, there are already 12.4 million hectares of denuded watershed reserves, leaving only 1.5 million ha of protected watershed reserves. of the 154 areas classified as priority watersheds nationwide, 124 are considered to be in critical state (denr, 2004). As of 2005, 3.5 million ha of watershed reserves are under government tenurial agreements.

unCovering the Crisis: trends in forest degradation and resource Loss

14


biodiversity Loss deforestation has also contributed greatly to the high rate of biodiversity loss in the Philippines, eliminating many land-based plant and animal species. the table above, for instance, shows the number of threatened Philippine plant species.

the reAsons for forest rAmPAge there are many interrelated and historical factors which have contributed to the widespread and rapid loss of Philippine forests in the past 100 years.

Much of the causes of deforestation and land degradation are man-made, including intensive logging over decades, upland migration, agricultural expansion, development policy failures, inequitable land distribution programs and mining. the nature of state policies from the period of colonization up to the present time is one of the driving factors of forest degradation (Bautista, 1990). throughout different administrations, a large proportion of the country’s land area was deemed part of public domain and substantial areas of forestlands have been converted for commercial and other uses (into golf courses, subdivisions, etc.) or leased out for logging and other forest product extraction activities.

tAbLe 1.1 summAry of threAtened PLAnts in the PhiLiPPines And their CAtegories (Figures in parentheses refer to the number of endemic species in the Philippines)

Category Angiosperms Gymnosperms Pteridophytes Bryophytes All Taxonomic Groups

Critically endangered 89 (80) 10 (9) 99 (89)

Endangered 140 (114) 9 (4) 35 (27) 2 (2) 186 (147)

Vulnerable 123 (91) 2 (0) 51 (34) 176 (125)

Other Threatened Species 56 (45) 8 (6) 64 (51)

Other wildlife species 70 (47) 99 (80) 169 (127)

All Categories 478 (377) 11 (4) 203 (156) 2 (2) 694 (539)

Source: threatened Plants of the Philippines: A Preliminary Assessment 1

much of the causes

of deforestation and

land degradation

are man-made,

including intensive

logging over decades,

upland migration,

agricultural expansion,

development policy

failures, inequitable

land distribution

programs and mining

15

a. Logging unsustainable legal logging practices are the primary cause of forest cover loss. the Philippine government has made logging a lucrative industry for concessionaires, who are hardly required to pay the real costs of the forest resources exploitation on ecosystems and the people. Licensed loggers enjoy privileges such as measly timber extraction fees while generations of filipinos suffer from the effects of forest cover loss.

Many old growth forests were logged over when contracting out of timber production began in the late 1970s (Bautista, 1990) through the timber License Agreement (tLA). An estimated 319,000 ha of forest lands were lost annually from 1968 to 1986. At present, other legal logging permits such as industrial forest Management Agreements (ifMA) and socialized industrial forest Management Agreement (sifMA) continue to be issued. in the last few years, declining wood availability, heavy soil erosion and flash floods prompted government to impose logging bans on primary forests.

illegal logging also contributes to deforestation. it is often tacitly condoned by politicians and other influential entities; the products from such a trade eventually enter international trade systems.

b. Upland migration the Philippine upland population has grown at a rate of 3% annually since the 1950s while total forest cover has decreased by 24% since the 1970s (Amacher and hyde, 1996).

social marginalization, the lack of substantive socio-economic reforms, and political instability in rural areas have been drivers of upland migration and resulting forest cover loss (sajise and omegan, 1990). Poor families have historically migrated to the uplands due to the failure of government policies and programs to effectively address problems of unemployment and inequitable land and income distribution in impoverished lowland areas where socio-economic reforms are not taking place. displaced urban workers and landless agricultural workers

uncovering the Crisis: trends in forest degradation and resource Loss

16


migrate to upland frontiers in search of better opportunities, converting upland forests for subsistence, tenancy or agricultural production. this exacerbates downstream flooding and sedimentation.

c. Agricultural expansion

Private or corporate-controlled agricultural expansion was promoted and pursued by the government from the time of the spanish colonial government to the present, including in its scope forest lands deemed suitable for agriculture. in the 19th century, for example, Cebu island was already severely deforested and eroded due to the expansion of sugar cane, rice, and corn cultivation and the rise of the timber industry.

By the 20th century, the effects of agricultural expansion were already accepted as one of the factors fuelling deforestation in the Philippines. however, the government tended to blame indigenous peoples (iPs) and upland settlers and tried to control their kaingin (shifting cultivation) practices. Critics claimed that this contributes to more environmental problems such as deforestation, soil erosion and degradation, and species loss, particularly if areas are slashed, burned, and cultivated next to each other in rapid succession. iPs, however, assert that their traditional practice of shifting cultivation —negatively dubbed as ‘slash and burn’ agriculture—was first practiced by iPs alone but was adopted by the expanding populations forced to retreat to the uplands.

d. Inequitable land distribution programs Lack of access to land and natural resources by the majority of the Philippine rural and urban population is a prevailing reality, a key cause of poverty, and a driver of social conflict. despite various agrarian reform programs, most of the people remain landless. in 1972, for instance, land reform programs were instituted allowing tenants to purchase land; however, this covered only tenanted rice and corn farms, giving landowners an incentive to evict tenants and hire landless workers, further reducing access to the land. the 1987 Comprehensive Agrarian reform Law and Program was more a lip service than a social justice measure that still left vast private lands untouched by

displaced urban

workers and landless

agricultural workers

migrate to upland

frontiers in search of

better opportunities,

converting upland

forests for subsistence,

tenancy or agricultural

production

17

uncovering the Crisis: trends in forest degradation and resource Loss

the program. outdated land administration laws, inefficient land administration and adjudication infrastructure, inadequate agrarian support services, and a poor land information system have caused problems such as fraud, overlapping and duplication of land titles and widespread land grabbing. More lowland farmers and iPs have been displaced and migrated to other upland forested areas where they then faced threats from logging, mining, and other infrastructure projects covering forest lands.

e. Inadequate Reforestation

over the years, the Philippine government and the private sector have invested in various forest rehabilitation projects to address the growing problem of degradation, restore forest cover, provide environmental services, ensure timber supply, and generate livelihood. however, these reforestation efforts remain erratic, wanting and ineffective for the most part, with low tree survival rates. these also became a reason to evict forest occupants and local communities as they were considered the main culprits behind deforestation. the government has prioritized partnerships with the private sector while the non-government sector’s engagement in reforestation efforts has remained minimal due to an unstable policy environment and inadequate incentives. however, the combined area reforested by both the government and private sector from 1983 onwards did not in any way constitute effective reforestation efforts; only in 1989 and 1999 did reforested areas reach beyond the 100,000-hectare mark. these areas declined to 25,000 ha in 2001 (denr, 2004).

there is also the problem of good governance, as rehabilitation projects become opportunities for many (often undocumented) cases of graft and corruption between government officials and reforestation contractors. inefficient and lax fund management by the government has resulted in massive loans incurred in the name of reforestation, contributing to the country’s already massive foreign debt.

18


f. MiningMining has greatly contributed to the country’s loss of forest cover: from 17 million hectares in 1934 to just three million in 2003 or an 82 per cent decline (World resources institute, 1992). given that Philippine forests are already in chronic decline, mining threatens to decimate some of the last of our standing forests. Based on the CeC state of the Philippine environment (sPe) study, most of mining concession areas operate and undergo exploration within our remaining forest and key biodiversity areas (KBA), largely affecting its ecosystems. there are 228 key biodiversity areas (KBA) in the country, and 92 of these KBAs are major forest areas found in mountainous parts of the country. An overlay with existing large-scale mining concession areas provided by MgB reveals that four ftAAs, 174 MPsAs, and 50 ePs or a total of 228 mining permits operate within and affect 58 out of the 92 forest KBAs.

fAiLure of forest And deveLoPment PoLiCy in summary, the factors underlying the forestry crisis are related. the state of the country’s forests generally reflects the state’s inadequate policy reforms, weak enforcement capacity, and the failure of costly reforestation programs. Many leaseholders continue to exploit forest resources without undertaking selective logging and replanting requirements. forest policy formulation, implementation, and monitoring have been marred by the dominance of short-term commercial interests over long-term protection of our ecosystems, national interest, and future generations of filipinos.

19

20


21

ii. A history of PLunder timeline oF PhiliPPine laws and Policies contributing to deForestation

the Philippine forest has reached a state of crisis with the institutionalized plunder of the country’s forest resources. The history of the country’s loss of forests points to the contributions

of colonization, corruption and continuing deferment to foreign dictates, which all exploited forest resources for economic and political gain.

evoLution of PhiLiPPine forest PoLiCies Most of the country’s historical and current forest policies were framed in relation to the logging industry and their relation to land use, natural resource utilization, and trade. Logging was traditionally practiced mostly for domestic use in pre-colonial Philippines: as a source of materials for residential and defence structures, fuel, implements and other production tools, and items for aesthetic or cultural value.

Policies institutionalizing large-scale and commercial logging were put in place from the time of the spanish colonial administration and its imposition of the regalian doctrine, which decreed that everything in nature is owned by the state.

since the spanish colonization of the Philippine islands, various changes and additions have been done to the country’s forest policies, reflecting the government framework on environment and development (see Annex A).

under sPAnish erA during the spanish colonial period, ecosystem balance was first weakened by the colonial impetus for resource extraction and land

22


conversion. seduced by the wealth of mountains covered with vast forests, the colonizers used their power to exploit the country’s resources, instituting a system of resource extraction with little concern for conservation.

the promulgation of the regalian doctrine during the spanish era emphasized the doctrine of state ownership over all natural resources, including forests. this meant that all natural forests and designated forestlands were owned by the state; any use was subject to government regulation and legal controls and was a privilege granted by the state to favored entities.

inspeccion general de Montes was enacted to govern the forestry sector in utilizing and extracting forest resources.the forestry service was allowed by the superior Civil government to intervene in all matters pertaining to cutting, extracting timber, resins, and the like: granting concessions over mountain lands and sanctioning transactions over lands and forests.

the spanish and the u.s. colonial administration sanctioned the granting of generous timber concessions to foreign and private corporations through a royal decree under spain and the general order 50 of April 14, 1900 under the American administration. the extraction of hardwood trees for ship-building and forest clear-cutting for commercial and export-oriented agriculture also contributed to deforestation.

under us CoLonizAtionForest plunder by the United States. Philippine forest reserves declined steeply under the period of colonization by the united states, when modernized logging was introduced and the massive timber cutting operations for log exportation started as a major industry. for the us government in 1900, the country’s then-vast natural forests, covering 70% of the total land area, was part of the natural wealth that could be exploited. upon instruction by the Bureau of forestry and the first school of forestry in Los Baños under American mentors, trees were primarily regarded as agricultural export crops and economic goods.

seduced by the wealth

of mountains covered

with vast forests, the

colonizers used their

power to exploit the

country’s resources,

instituting a system

of resource extraction

with little concern for

conservation

23

A history of Plunder: timeline of Philippine Laws and Policies Contributing to deforestation

in 1904, American logging firms started the massive pillage of forests, introducing to the world what came to be known as Philippine mahogany. they came in droves in the 1920s, enjoying indefinite logging concessions over the entire archipelago. hardwood trees were felled for shipment to other countries and the construction of underground mining facilities for new mines opened by the colonial government. these firms, unfortunately, never replaced the trees that they cut. in the upland areas of Baguio, for instance, commercial logging to support the mining industry reached such a scale that a stop to timber cutting was imposed in 1928, causing sawmills to move north to the Mountain Province where massive logging continued.

in 1946, Bell trade Act required that the Philippine Constitution be revised to grant us citizens and corporations equal access to Philippine minerals, forests, and other natural resources. Wielded as instruments of direct colonial rule, these policies directly favored beneficiaries and supporters of colonial rule and deprived the colonized filipinos of access to forest resources.

Timber exports and plunder. the Philippines became Asia’s number one timber exporter from the 1920s to the 1960s. in less than three decades (until the middle of the 1930s), American logging concessionaires were able to erase 47% or 9.9 million hectares of original or old growth forests by cutting timber for export and converting them into residual or sub-marginal forest areas. from 1920 to 1934, the annual loss of forest lands was at least about 140,600 ha, affecting most severely around 93% of the country’s naturally-grown dipterocarp forests.

An estimated 12 million hectares of original forests were wiped out under the 48 years of American colonization from 1898 to 1946. during this period, forest cover breached the level of sustainability, which was set at 54% of the country’s land area. According to the Bureau of Commerce and industry, the growth rate of timber exports from 1916 to 1920 reached about 55.2% which was the highest rate of export recorded from 1911 to 1988. But no amount of export receipts generated during this period can surpass the price the country had to pay in the following decades, in terms of disasters, denuded lands, and loss of lives and livelihood.

An estimated 12 million

hectares of original

forests were wiped out

under the 48 years of

American colonization

from 1898 to 1946

24


Vast US logging interests after Philippine ‘Independence’. even as the country declared independence, us logging interests continued to enjoy parity or equal economic rights in the Philippines under various agreements with the government and were guaranteed profits until the middle of the 1970s. When the parity rights provisions expired in the 1970s, us logging companies continued to operate either in partnership with filipino corporations or individuals. Many logging firms were formerly owned by Americans or have us corporate stockholders, such as findlay Millar timber Corporation, which operates partly in the Autonomous region of Muslim Mindanao (ArMM) and Paper industries Corporation of the Philippines (PiCoP), which maintains concessions in surigao del sur, Agusan del sur, davao del norte, and davao oriental.

under the mArCos diCtAtorshiPduring the administration of former Pres. ferdinand e. Marcos (1965-1986), almost 7 million has of forests were estimated to have been lost. Annual deforestation rates peaked due to massive timber harvesting. Pd 705 was promulgated, adopting policies such as recognizing the multiple-use of forest lands; systematization and hastening of land classification and surveys; promoting and rationalizing wood processing plants; and developing and rehabilitating forest lands for production purposes.

Issuance of TLAs. the widespread clear-cutting of forests that started under the us colonial rule continued under Marcos through timber License Agreements (tLA): a phenomenon which brought Philippine forests to the brink of extinction. tLAs, timber concessions, and homestead rights were dispensed to the point of becoming political concessions to cronies and supporters of the dictatorship. the number of forest concessions spiked up from 58 in 1969 to 471 in 1976. up to 11 million hectares were covered by tLA holders, mostly comprised of Marcos’ relatives, cronies, military officials, politicians, elite families and co-opted Moro rebels who surrendered (Vitug, 1993). tLA holders were encouraged to “cut and cut more and quickly” through the issuance of annual allowable cuts (AAC) determined by the forest Management Bureau. Logging concessionaires were obliged to achieve 60% of their AAC or face the revocation or non-renewal

the widespread clear-

cutting of forests that

started under the us

colonial rule continued

under marcos through

timber License

Agreements (tLA): a

phenomenon which

brought Philippine

forests to the brink of

extinction

tLA holders were

encouraged to “cut and

cut more and quickly”

through the issuance of

annual allowable cuts

(AAc) determined by

the Forest management

bureau

25

of their licenses. no penalty, however, was meted on those who logged more than their AAC.

Logging boom and forest plunder. the logging industry reached its “boom years” and was beneficial to the economy from the perspective of the government and those who profited immensely during the heydays of a very liberal forest policy. it was in 1976 when corporate loggers were legally allowed to cut 22 million cubic meters of timber in a single year: a record unsurpassed since 1973. Most of the timber harvested was exported to Japan, which by then overtook the us as the main market of the country’s timber and lumber exports. in the Philippines, processed wood products then constituted 42.7% of the country’s exports.

the wide clear cutting of forests from the 1920s to the early 1980s denuded more than 10 million ha of forest cover or around 50% of the country’s original 20 million-hectare forest cover. By 1982, the government introduced a “paradigm shift” in the country’s forest policy through institutionalizing the integrated social forestry Program (isfP) which assigned strategic and management roles to forest dwellers among indigenous peoples and upland communities. under the Aquino-rAmos-estrAdA AdministrAtions After the edsA 1 revolt pushed the Marcos dictatorship out of power in 1986, more policy shifts were initiated which ostensibly recognized the bleak reality of deforestation and subtly admitted a failure of the government’s policies. however, these changes never strayed from the path which encouraged the continued plunder of Philippine forests. Business as usual generally continued for large corporate logging interests. the new Philippine Constitution after edsA i rendered the tLA unconstitutional but did not change the general orientation of the government towards forest resource use. Administrations continued to honor timber licenses—even those held by Marcos cronies—while approving new concessions and renewing expired contracts.

Continued forestland conversion. in 1988, the Comprehensive Agrarian reform Law was passed under the administration of President Corazon Aquino. however, the law failed to stop indiscriminate forest land conversion into agricultural areas due


the wide clear cutting

of forests from the

1920s to the early

1980s denuded more

than 10 million ha of

forest cover or around

50% of the country’s

original 20 million-

hectare forest cover

26


to the unclear delineation of forest lands, unclear and inconsistent land reform priorities (such as the exclusion of many non-reform areas from the total target of 10.3 million ha for agrarian reform), and lack of political will to pursue genuine and vigorous agrarian reform programs.

Debts for failed reforestation. from 1987 to 2000, the Corazon Aquino administration launched the national forestation Program to rehabilitate 1.4 million ha nationwide, or an average of 100,000 ha per year (Magno, 1994), implementing forestry sector Projects (fsP) i and ii in 1987 and 1995. these were funded mostly through loans that added to the country’s already looming foreign debt. the fsP i was funded through government loans of $120 million from the AdB, $120 million from the overseas economic Cooperation fund of Japan to bolster the Philippines’ $43 million budget. the fsP ii’s $44.57 million budget was also supplanted by additional loans of $39.7 million from the AdB and $55 million from the Japanese Bank for international Cooperation. fMB data reveal that $98.54 million was spent for the fsP’s site development component from 1987 to 2001 alone, with an average reforestation cost of us$382.47 per hectare. despite the massive budgets, only 21% of the total target reforested land was accomplished by the end of the program (Chokkalingam et.al, 2006).

New instruments. the administration of former President fidel V. ramos instituted new forms of timber concessions in response to the framework of social forestry, such as the Community-Based forest Management (CBfM) agreement through an executive order in 1995 and the industrial forest Management Agreement (ifMA), which replaced the industrial tree plantations of Marcos’ time. ifMAs give holders the right to harvest non-timber products in their concession areas and require one-half of concession areas to be reforested. Many corporate and individual holders of expired tLAs subsequently converted their permits into ifMAs.

under the Arroyo AdministrAtionMany disasters related to deforestation, logging, and mining occurred since the administration of former Pres. gloria Macapagal-Arroyo (2001-2010). these included the landslide tragedy in general nakar, real and infanta Quezon province

despite the massive

budgets, only 21%

of the total target

reforested land was

accomplished by the

end of the program

27

figure 2.1 deforestAtion rAte vs. reforestAtion rAte

SOurCE: confronting ecological crisis (center for environmental concerns, 2012)

(2004) and mudslide in southern Leyte (2006) which killed and buried thousands of people. despite these recurring tragedies, policies and economic programs which promoted the commercialization and extraction of the country’s natural resources, including remaining forest and mineral reserves mostly in forested lands, were promoted. After a brief and dubious logging ban calculated to ease public outrage at the north Quezon disaster, the Arroyo administration lifted log bans one by one and allowed logging under tLAs and ifMAs to continue.

reforestation initiatives by the government cannot catch up with the continuous loss of the country’s tropical forest.

New logging permits signed. Between January 2001 and June 2004, the Arroyo administration granted 23 new ifMA contracts covering 191,250.60 ha, constituting 30% of existing area coverage of the 668,498.17 ha already covered by ifMA permits nationwide. the required reforestation efforts in these ifMAs showed dismal performance; in 2001, ifMA and tLA holders merely reforested 0.16% or 1,900 hectares out of 1.2 million hectares of their combined concession areas.


In 2001, IFmA and

tLA holders merely

reforested 0.16% or

1,900 hectares out of

1.2 million hectares

of their combined

concession areas

28


Among the more controversial decisions was the reinstatement of two ifMA holders including one holder previously caught engaged in illegal logging2. in november 2005, the Arroyo administration reinstated the cancelled tLA of san Jose timber Corporation (sJtC) in samar, issued to senator Juan Ponce enrile during the Marcos dictatorship. in August 2005, the government also excised a part of samar nature Park and Protected Area to make way for bauxite mining, lifting a logging moratorium in samar island despite the fact that the island is a declared protected natural park hosting vast and remaining endemic biodiversity.

Policy shifts towards more foreign investment. in 2004, the Arroyo administration attempted to come up with an omnibus forestry policy review and harmonize policies to attract more foreign investments; in the process, it forged more tenurial instruments that encouraged the conversion of public forestlands for private industrial and commercial purposes, including large-scale mining and ecotourism.

in June 2004, Pres. Arroyo issued eo 318 declaring sustainable forest Management. on August 31, 2004, the denr followed suit with a series of department Administrative orders (dAo) issued by then outgoing denr secretary elisea gozun. the following month, former denr secretary Mike defensor promised a revitalized wood industry to members of the Philippine Wood Producers Association. the dAos issued by the denr were:

• DAO59(RulesandRegulationsGoverningtheSpecialRulesof forestlands) facilitated the establishment of forest Land-use Agreements (fLAg). fLAg is a contract between the government and qualified private applicants to occupy, manage, and develop any forest land of the public domain for a period of 25 years, renewable for another 25 years. specifically, dAo 59 authorized fLAg holders to convert and use public forestlands for commercial and industrial purposes such as warehousing, drydocking, fish drying, industrial processing, nipa and

2the ifMA of toplite Lumber Corporation was suspended in 2003 after it was allegedly caught logging beyond its boundaries

in Aurora but was reinstated by denr secretary defensor in 2004. on March 2005, Malacanang reinstated the ifMA of

timber forest Products in general nakar, Quezon.

29

medicinal herb plantations, lumberyards, mineral storage, mining waste disposal, motor pool, schools, dams, and others. With 50% of Philippine land still considered public forestlands, this dAo further eroded the government’s obligation to protect and nurture our forest and open forests up to further destruction.

• DAO29coveredtheuseofforestlandsfortourismpurposes.Although these dAos were suspended in January 2005 by former denr secretary Mike defensor after numerous complaints, they remain in effect and have only been modified to require the denr secretary's prior clearance before approval of forest land conversion policies.

under the new Aquino AdministrAtion the same issues and concerns hound the administration of Benigno Aquino iii.

the Aquino administration attempted to highlight the mistakes and corruption under the incumbent Arroyo administration with respect to forest policy. however, as of this writing, it has yet to forward any clear and correct solution to address historical environmental problems and the rapid degradation of forest cover. for instance, it has yet to address the policy problems of large-scale mining liberalization and the promotion of plantation forests over conservation which aggravates deforestation. At the same time, more environmental disasters are occurring, including worsened flooding and biodiversity loss.

Log ban with loopholes. in early 2011, Aquino issued eo 23 imposing a moratorium on the cutting and harvesting of timber in the natural and residual forests throughout the entire country and creating an anti-illegal logging task force. the log ban imposed by eo 23 intended to uphold the principle of intergenerational responsibility to protect the environment and to prevent further destruction wrought by natural disasters. however, loopholes, inconsistencies, and exemptions found in the order have rendered it incapable of halting deforestation and helping the country regain ample forest cover:


30


• EO23hasnotrevokedorcategoricallybannedcommerciallogging; it only stops the denr from granting new contracts while reviewing existing contracts.

• EO23statesthatcuttingoftreesisallowedforsitepreparationand road construction. this opens the danger that tree-cutting is permitted for the sake of those who will establish plantation/monoculture farming, an irony since these types of activities risk biodiversity and open more forestlands to destruction.

• TheissuanceoftheEOfailstoaddressanotherproblemwiththe implementation of the law: the issue of corruption within the denr, which is responsible for the processing and approval of large-scale commercial logging permits. the review process is to be implemented by the same agency which failed to implement log bans in the past and has remained vulnerable to corruption within the bureaucracy.

Greening and greed. on february 24, 2011, President Aquino issued eo 26, or the national greening Program (ngP) to promote forest rehabilitation and restoration.

the commitment under the ngP is to plant 1.5 billion trees in 1.5 million hectares of land within six years. in contrast, the national forestation Program launched under the Corazon Aquino administration aimed to rehabilitate 1.4 million hectares nationwide from 1987 to 2000. the nfP, with more than 10 years of implementation, failed and only accomplished 21% of the total target. hence, the ngP target of 1.5 million hectares in 6 years is impossible to hit.

to reach the target, 250 million seedlings should be planted in 250,000 ha of land per year. from the statistics released by ngP, only about 300 million seedlings have so far been planted, three years after the implementation of the order. thus, there is already a deficit of 450 million seedlings.

reforestation does not end on planting seedlings alone. ensuring that these seedlings will grow into trees, which could take at least three years of care, is also important.

31

Lastly, the ngP remains vulnerable to corruption and fund mismanagement. in 2012, for instance, the government allocated P2.7 billion under denr budget for planting seedlings in 214, 900 ha of land, P761 million under dA to produce 36 million fruit seedlings and 9 million for deped to produce 20 million planting bags and 200 ieC materials. overall, the government allotted about P5.7 billion from the national budget for the ngP in 2013 alone: a project which, if not properly managed and allocated, may very well serve as another source of corruption (official gazette, July 2012).

32


33

iii. Probing the Logging industryimPacts oF logging on PhiliPPine Forests

the importance of the logging industry in the Philippines is gleaned from its contribution to the country’s economy. however, one must note that present forest-based industries

have followed the general orientation and framework of the colonial governments that once ruled the land.

Large-scale logging started under the spanish and us occupations. during the spanish colonial period, forests began to be systematically exploited to supply the needs for infrastructure and export trade. the us colonial period further thrust the Philippine logging industry into the realm of the market economy: modernizing and orienting it towards export production. Any supposed benefits or profits were enjoyed mostly by loggers.

the logging industry in the Philippines boomed under the Marcos dictatorship, with the unregulated issuance of timber permits, wanton extraction, and corruption under Pd 705. even after the dictatorship fell in 1986, the government’s general orientation towards the use and exploitation of forest resources remained the same. generAL orientAtion: exPort-oriented, imPort-dePendentLogging is an export-oriented and demand-driven industry: a product of colonial imposition of market rule. this is affirmed by looking at the government policies and statistics on exports and countries of destination for Philippine wood products. Before the rationalization of the Philippine wood-based industry and the log export ban in 1975, tLA holders were required by the government to export 80% of logs produced. table 4.1 shows the extent of log export from 1916 to 1975, during which the us and Japan ranked as top importers of Philippine wood products.

before the

rationalization

of the Philippine

wood-based

industry and the

log export ban

in 1975, tLA

holders were

required by the

government to

export 80% of

logs produced

34


figure 3.1 ProduCtion, exPort And imPort of mAjor forest ProduCts (1990-2011)

SOurCE: Philippine Forestry statistics, 2011

tAbLe 3.1. AverAge AnnuAL exPort, growth rAte And extent of under rePorted exPorts

Period Average Annual Export (1,000m3) Share of export (%) Growth rate for Export (%) rate of under reporting

1916-20 26 6.3 55.2 -

1921-25 80 10.9 36.6 -

1926-29 191 14.7 19.0 -

1955-60 2,393 46.9 21.0 38.9

1961-65 3,879 57.5 42.1 65.4

1966-70 7,865 50.8 23.3 56.1

1971-75 6,940 67.8 -3.2 63.2

SOurCE: g.m bautista. 1990. the Forestry crisis in the Philippines: nature, causes, and Issues

the export-oriented and market-driven nature of logging drastically reduced the country’s capacity to sustain the forest industry. now, only around 800,000 hectares of old growth forests—the chief source of dipterocarps or “Philippine Mahogany” trees—are left. After three decades (from 1950s to the early 80s), the Philippines turned from a leading source of raw timber exports worldwide to an importer of processed forest products.

government statistics reveal that, as early as 1982, the country was already importing log and processed forest products, particularly lumber and plywood. A comparison of the trade balance – or the record of production as against exports and imports – of logs and processed wood products between 1990 and 2011 reveals the trend of the industry.

LOG LumBEr

After three decades (from

1950s to the early 80s),

the Philippines turned

from a leading source

of raw timber exports

worldwide to an importer

of processed forest

products

35

figures 3.2 and 3.3 show the volume of production, import and export of logs and lumber from 1990 to 2011.the Philippine still exports logs and lumber despite the fact that the government spends much in importing the same materials. in such a state, it may be said that the country’s logging industry has already become export-oriented and import-dependent – characteristics shared by other aspects of the Philippine economy.

Probing the Logging industry: impacts of Logging on Philippine forests

figure 3.2 forest-bAsed ProduCts exPorts summAry: 2011

Exports Quantity Value (in Thousand uS$, FOB)

Log (cu.m) 2,696 145

Lumber (cu.m) 404,533 24,377

veneer and other wood worked (cu.m) 14,633 1,347

Plywood and plywood veneered panels (cu.m) 39,834 24,336

Fiberboard (nk) 114 5

non-timber forest products (nk) 529,521 1,244

selected non-timber manufactured articles m 4,737

wood-based manufactured articles (gk) 441,925,314 1,683,815

Pulp and waste paper (nk) 151,445,195 128,900

Paper and articles of paper and paperboard (nk) 135,575,892 179,940

Forest-based furniture (gk) 20,957,881 105,874

other forest-based products m 12,619

total Forest Products exports 2,167,339

total exports 48,305,000

Forest Products exports as % of the total exports (in terms of value) 4.4868

NOTE: m indicates miscellaneous unit of measurements, Fob stands for ‘freight on board’

36


Logging for whom?As an agricultural country with formerly vast tracts of forest, the Philippines has long engaged in the trading of forest resources. Considered as an agricultural product and raw material, timber was extracted at a massive scale with little concern over the serious impact of losing this valuable component of the country’s ecosystem. Promotion of large-scale logging as a policy has been premised on its generation of supposed economic “benefits” which focused on revenues and employment generated. however, a closer look at who really benefits the most from the logging industry casts doubt on their supposed social and economic benefits.

figure 3.3 forest-bAsed ProduCts imPorts summAry: 2011

Imports Quantity Value (in Thousand uS$, FOB)

Log (cu.m) 88,908 17,411

Lumber (cu.m) 159,974 70,200

veneer and other wood worked (cu.m) 38,011 11,333

Plywood and plywood veneered panels (cu.m) 94,231 69,617

Particleboard (gk) 40,500,217 16,876

Fiberboard (nk) 42,146, 845 23,303

non-timber forest products (nk) 37,459 58

selected non-timber manufactured articles (pcs) 96,412 30

wood-based manufacture articles (pcs) 43,161,766 29,065

Pulp and waste paper (nk) 900,691,540 94,322

Paper and articles of paper and paperboard 895,160,682 770,601

Forest-based furniture (gk) 79,807,824 53,043

other forest-based products m 12,825

total Forest Products Imports 1,168,684

total Imports 60,496,000

Forest Products Imports as % of the total imports (in terms of value) 1.93

NOTE: m indicates miscellaneous unit of measurements, Fob stands for ‘freight on board’

37


a. Minimal and short-term employment for communitiesstatistics point out that employment in the logging industry has been disappointingly dismal and minimal at best. employment generated was low and mostly seasonal or contractual in nature. from 1975 to 1990 (selected years), contractual workers comprised more than 63% of the entire employment of the industry.

Labor utilization in the logging industry. Among the major arguments in allowing logging was its supposed role in abating the problem of unemployment in the country, especially in the rural and upland areas. residents of communities near concession areas could work as skilled or semi-skilled workers, or become operations and administrative support personnel. Machine operations also require semi-skilled workers such as chainsaw operators, truckload operators, riggers, and managers or supervisors. other positions open are for tree planting activities and road maintenance. however, even these alluded benefits could barely make up for the general impact of wanton extraction of timber. figures would show that employment is “disappointing” even in the heydays of the logging industry (iLo, 1977).

High occupational hazards. Another important issue in the industry is the risk of working in a logging operation. the iLo noted that “on a worldwide level, logging in forestry ranks as one among the most hazardous of all occupations” aside from having disagreeable living conditions in very remote forested areas. the frequency and severity of accidents were also noted to be very high, and shared a place with mining as “most hazardous occupations in occupation in a cross-section of industrialized countries,” and even in the developing countries (Bfd/iLo, 1977).

b. Declining government sharesAnother reason for the support for logging was the revenues generated for the country’s treasury. different administrations have lauded the economic contributions of logging whenever and wherever the industry is attacked for causing the unscrupulous drain in Philippine timber and other forest resources.

employment generated

was low and mostly

seasonal or contractual

in nature. From 1975 to

1990 (selected years),

contractual workers

comprised more than

63% of the entire

employment of the

industry

38


the logging industry’s contribution to the country’s foreign exchange earnings is reflected in the country’s gross Value Added (gVA). unlike taxes and/or charges, the gVA figure does not necessarily reflect the real contribution of a particular industry to the entire economy. statistics on the growth rate of gVA in forestry from 1977-2003 show that the average gVA growth rate at constant and current price are -9.87 and -2.37 percent, respectively. this means that over this period, the economy was actually losing than gaining from the industry at the national level.

forest charges (the amount levied on the volume of timber taken out from the forest) are a more accurate way of appraising the economic contribution of the logging industry to the country. the

tAbLe 3.4 gross domestiC ProduCt (gdP) And gross vALue Added (gvA) in forestry: 1998-2011 (in millions Php)

Year At Constant 2000 Prices At Current Prices

GDP GVA in Forestry % Share in to

GDP

GDP GVA in

Forestry

% Share in to

GDP

2011 5,924,409 4,286 0.07 9,735,521 3,906 0.04

2010 5,701,539 2,676 0.05 9,003,480 2,435 0.03

2009 5,297,240 3,896 0.07 8,026,143 3,758 0.05

2008 5,237,101 3,977 0.08 7,720,903 3,574 0.05

2007 5,028,288 3,894 0.08 6,894,721 4,155 0.06

2006 4,716,231 5,159 0.11 6,271,157 5,126 0.08

2005 4,481,279 4,396 0.10 5,677,750 4,537 0.08

2004 4,276,941 4,275 0.10 5,120,435 4,330 0.08

2003 4,008,469 2,759 0.07 4,548,102 2,123 0.05

2002 3,818,667 2,151 0.06 4,198,345 1,758 0.04

2001 3,684,340 3,016 0.08 3,888,801 2,741 0.07

2000 3,580,714 5,206 0.15 3,580,714 5,206 0.15

1999 3,429,434 3,983 0.12 3,244,197 3,325 0.10

1998 3,326,902 3,413 0.10 2,952,762 2,847 0.10

SOurCE: Philippine Forestry statistics 2011, denr-Fmb

Table 3.4 shows the Gross Domestic Product (GDP) and Gross Value Added (GVA) in forestry: 1998-2011 (in million Php).

39

result of a study on tax structures in wood-based industries in the early 1980s showed that direct taxes (forest charges and licensee fees) only account for 3.9% of total production cost in logs. from 1975 -2003, forest charges have comprised average of 4.7% of the actual price or unit value of logs in the market (export). this corroborates the findings of revilla, et al (1999), that up to 1989, the forest charge for timber was “measly 1.5 to 3% of the logs’ market value.” this means that timber was valued at significantly low price ranging from P1 to P29.

weighing the Costs of LoggingLogging generated quick and large profits for private and corporate interests. on the other hand, it barely contributed to domestic long-term employment and state revenues. the compounded effects of unregulated logging have also cost the country more in environmental destruction, social displacement, and tax burdens. a. Unprecedented forest degradation contributing to

catastrophes. Logging has been a usual suspect in the environmental catastrophes occurring in the country. flooding, inundation, siltation, sedimentation, and landslides, among others, point to forest extraction as the core cause. however, the government has tended to obfuscate or downplay the logging industry’s role in forest degradation and point the accusing finger to poor kaingineros (shifting cultivators), forest fires, or other causes. examining the government’s data, however, reveals a different scenario.

b. Extent of forest cover loss due to logging. the total estimated forest area denuded by legal logging from 1981-2002 already comprises 68% of the total deforestation caused by several agents ( see figure 1, Chapter 2). this is based on official tenurial agreements (tLAs, ifMA) which remain unregulated and fail to comply with necessary requirements provided by law, leaving the area deforested.

revilla et al in their paper “forestry 2050” (1999) showed why official government statistics on forestry and logging deserve


From 1975 -2003,

forest charges have

comprised average of

4.7% of the actual price

or unit value of logs in

the market (export)

the total estimated

forest area denuded

by legal logging from

1981-2002 already

comprises 68% of

the total deforestation

caused by several

agents

40


iv. gLobAL Context of CLimAte ChAnge PoLiCies

careful scrutiny. the paper noted that from 1972-80, recorded log production was only 68.4 million cubic meters while the estimated total timber drain was 300 million cubic meters, or 4.4 times the recorded log production. in 1980-87, a more alarming figure was revealed which showed that of the 33.4 million cubic meters recorded log production the estimated total timber drain was actually 500 million cubic meters , or 15 times the recorded log production.

timber harvesting, by corporate and legal logging alone, was able to denude forest vegetation by at least 3 million hectares in 1961-1985 ( ibon,June 2005). this figure which accounts for 56.3% of the estimated total deforestation for the period is a far cry from estimates based entirely on denr’s statistics on log production and residual damage.

c. Impact of the harvesting process on the environment. the very act of cutting down trees has an immediate impact to the lower vegetation within the vicinity of fallen trees. the transport of felled trees from the stump to the landing area also creates damaging effects on surrounding land areas. for instance, the use of highlead yarding using cables and truck has caused severe damage to soils and smaller plants. in addition, the noise coming from the trucks and heavy equipment during the operations also contributes to the environmental impacts of logging.

d. Effect on flora and fauna. Alongside timber stock decline is the growing number of flora and fauna included in the list of endangered species. in 1998, Protected Areas and Wildlife Bureau recorded 47 species of birds, 19 mammals, and 6 reptiles as endangered in the Philippines. After five years (2003), the iuCn has already included in their red List 68 species of birds, 51 mammals, 23 amphibians, 9 reptiles and 197 floral species. these figures continue to rise as deforestation worsens.

dAmAge to humAn Life And ProPertiesdeforestation-induced soil erosion is estimated at one billion cubic meters every year (ibon, 2000), or at least 200,000 hectares of land at one meter deep (denr). this is enough to cause severe

Alongside timber

stock decline is the

growing number

of flora and fauna

included in the list of

endangered species. In

1998, Protected Areas

and wildlife bureau

recorded 47 species

of birds, 19 mammals,

and 6 reptiles as

endangered in the

Philippines

41

loss of soil nutrients, sedimentation of rivers, lakes, dams, irrigation canals and other water ways.

this degree of soil erosion has been the prime cause of river siltation and subsequent flooding which caused massive destruction of properties and human casualties. from 1980-89, the eMB recorded a loss ranging from P2 million to as high as P392.2 million as a result of major floods that occurred in the country. in 1993-2002, the national disaster Coordinating Council recorded 280 floods. from 2000-2012, estimated damage to properties by floods ranged from P300,000 to as much as P38 billion. the highest damage registered was in 2009, during typhoons ondoy and Pepeng. however, the highest casualty recorded in flood disasters was in 2011, during the typhoons Quiel, Pedring and sendong.

tAbLe 3.5 dAmAge CAused by fLoods. 2000-2011

Year No. of persons affected

Casualties Total cost/damage

Dead missing Injured

2000 766,306 49 13 27 1.67307

2001 576,532 60 24 12 1.44644

2002 1,245, 602 27 10 26 0.91284

2003 3,362,991 139 28 182 3.24

2004 3,600,000 1060 566 1,023 2.04

2005 327,378 27 0.317094

2006 2,000,000 754 22 7.45

2007 329,191 1214 1.57

2008 975,713 258 70 13.5

2009 9,407,666 929 84 38

2010 452,999 25 8.32

2011 5,175,321 1157 106 1603 20

total 26,974,097 5,699 923 2873 98.46944

SOurCE: NSCB, USAID 2005, NDRRMC 2011, Philippines Country’s Profile 2009, CDRC 2012


42


the Logging industry

the logging process starts from the felling of trees (for timber, fuel wood, other products, or forest conversion) to their transport to processing mills which convert logs to lumber, veneer, plywood, or paper. Large-scale corporate logging– whether legal or illegal – has three major operations:

1. Timber harvesting – this includes the felling of trees and transporting them to landing areas, markets and processing plants (e.g. sawmills, veneer and plywood plants, furniture and pulp and paper mills). timber harvesting activities of legal corporate logging companies are based on an approved Forest management Plan or an Integrated Annual operations Plan which both stipulate the terms of rotation (a logging company’s schedule of activities) and annual timber harvest. these also disclose the planned road networks, reforestation program, community services, and planned activities.

2. marketing/trading of logs - historically, majority of logs produced from the Philippine forest are exported. mncs and logging companies were able to make enormous profits from this, often in association with local businesses; while the government encouraged harvests to generate more foreign exchange and revenue. by 1969, forest products constituted 33% of export revenues. As much as 80% of the recorded log production was exported from 1960s to 1970s, making logging the country’s top dollar earner of that decade.

3. Sawmills and processing plants operations - After the harvesting operations, logs that are not transported to the export market are further processed, either in sawmills (if logs are intended for lumber manufacture) or in processing plants (if logs are intended for veneer and plywood manufacture). there are at least five possible destinations of logs based on their suitability for particular end-products such as lumber, veneer, plywood, furniture, or pulp for paper manufacture.

AggrAvAting our foreign debt Another problem created by logging was the foreign loans incurred by the government intended for reforestation and rehabilitation efforts. A joint study of Center for international forestry research (Cifor), university of the Philippines Los Baños (uPLB), and the denr-fMB revealed that government rehabilitation efforts, from late 1970s up to the present, cost at least us$70 million, with most funding (about 93%) coming from public investment and foreign loans. these foreign loans were obtained from major lending international institutions such as the Asian development Bank (AdB), overseas economic Cooperation fund of Japan (oeCf), united states Agency for international development (usAid), Japanese Bank for international Cooperation (JBiC), international tropical timber organization (itto), international fund for Agricultural development (ifAd), german technical Cooperation (gtZ) and german development Bank (KfW).

the large amounts of money borrowed for rehabilitation purposes were easily drained without having a significant impact on reforestation. for instance, the rehabilitation fund from 1987-2001, totalling to P4.927 billion (us$98.54 million), has only yielded a mere 299,000.63 hectares3. this is less than 25% of the 1.4 million hectares targeted for reforestation under the national forestation Program.

3the amount cited is based on “one century of forest rehabilitation in the Philippines” by Juan M. Pulhin, unna

Chokkalingam, rose Jane J. Peras, romeo t. Acosta, Antonio P. Carandang, Mayumi Q. natividad, rodel d. Lasco and ramon

A. razal. estimate excludes the cost of community organizing which is a separate contract under community-based forest

management.

44


45

iv. the fAiLure of PoLiCy Flaws in government Forestry laws and Permit systems

Currently, Pd no.705 or the forestry reform Code is the country’s main law on the classification, management, and utilization of forestlands. Promulgated on May 19, 1975, Pd 705 embodies

all Philippine policies on forestry since the Marcos dictatorship. it was amended repeatedly by other laws, such as Pd no.1559, Pd no.865, Pd no.1775, Batas Pambansa (BP) Blg.701, BP Blg.83, rA 7161, eo 277 and 83 og no.31.

More than three decades of flawed policies and problematic implementation have resulted in massive deforestation, degradation of logged-out areas, and disasters exacerbated by forest cover loss. this chapter discusses several major aspects and problems with current Philippine forestry laws that need to be urgently addressed by substantial changes in policy frameworks, formulation and implementation.

the following critique points should be addressed by Philippine forestry policy reforms:

1. Pd 705 is LArgeLy Premised on A CoLoniAL And unsustAinAbLe eConomiC orientAtion towArds forest resourCe exPLoitAtion.As a policy, the 36-year old Pd 705 is now dated beyond rehabilitation. its provisions are no longer relevant nor reflective of the policy reforms that are needed to address current and emerging environmental trends and threats.

Unsustainable orientation. Pd 705, as with previous forestry laws, was mainly influenced by spanish and us colonial

46


forestry policy, which was generally oriented towards resource exploitation. these policies were formulated during previous decades when timber supplies and reserves were still abundant, when the threat of global warming seemed negligible, and when ecosystems still maintained a level of resilience despite resource exploitation. in the early 19th century, forests covered more than 90% of the country’s land. this abundant supply of timber made commercial logging in old growth forests a giant industry. Much profit could be made as trees in old growth forests have wider diameters and height, and therefore yield higher volumes of harvestable timber.

however, in this time of interconnected climate change impacts, widespread ecological degradation, and chronic forest cover loss, the law continues to prioritize the utilization of forest resources for economic investment. the law is still premised on the maximization of forest productivity through the granting of concessions to private sector investors to clear and “improve” forestlands for economic benefits. this orientation has directly contributed to the degradation and exploitation of natural forests and forest cover loss—a trend exacerbated by land conversion, agricultural expansion, and upland migration over the years.

Dangerous delineation and definitions. Pd 705’s hazy delineation of forest lands needs to be resolved to better utilize resources and protect forests. discrepancies between the four classifications of lands and their usage need to be addressed, as these have resulted in confusion over the utilization of forestlands and their conversion to agricultural, industrial and commercial purposes. there is, for instance, the continued overlapping of mineral lands and forestlands, where government has granted timber rights to mining corporations in mineral lands (public lands with valuable deposits of metal and other minerals) which are also forestlands. Another problem is the conversion of forestlands into agricultural areas,(and therefore alienable and disposable, or those that can be owned privately by filipino citizens) which again contributes to the further degradation of forest.

In this time of

interconnected climate

change impacts,

widespread ecological

degradation, and

chronic forest cover

loss, the law continues

to prioritize the

utilization of forest

resources for economic

investment

47

in other countries, outmoded forest laws are being changed in order to address the reality of forest degradation. in Brazil, for instance, the forestry law enacted in 1965 went unenforced for decades while land was illegally cleared. in 2011, Brazil adopted a new forestry law designed to promote responsible harvesting in their national forests and to address deforestation in the Amazon forest. it is high time for the Philippines to similarly reconsider its current forestry law.

2. Pd 705 hAs fAiLed to ProteCt And rehAbiLitAte PhiLiPPine forests for the PAst deCAdes. it onLy served to ContinuousLy Legitimize vArious Logging Permits thAt Are not onLy geAred for the exPort mArket, but hAve been ALso vioLAted And Abused by their hoLders with imPunity. under the 1987 Philippine Constitution, the state is given the right, through the denr, to undertake the development and utilization of natural resources, or to enter into co-production, joint venture or production agreements in order to achieve sustainable development and natural resources conservation. Private land forestry is encouraged and deregulated for the most part. natural resource utilization and management was mainly in the form of different timber permits which have only contributed to deforestation.

The destructive legacy of TLAs. from the 1950s to the 1980s, tLAs were the main instruments issued to corporations. tLA holders are said to have logged beyond the sustainable volume, practiced clearcutting, used heavy equipment during logging operations and road construction, and failed to sufficiently protect logged-over areas after harvesting. the concessionaires were accused of having a “cut-and-run” attitude and setting bad examples for the slash-and-bum farmers (generalao, 2000). Most tLA holders and private enterprises were mainly interested in extracting timber from old-growth and natural forests. they only reforested to establish plantations for their long-term interests or to extend token gestures of compliance with the reforestation requirements of the law and their license agreements.

Permit holders overexploited timber resources because there were a lot of government incentives for overcutting and forest

the failure of Policy: flaws in government forestry Laws and Permit systems

48


harvesting. from the 1950s to the mid-1990s, forest charges were applied at an ad valorem rate, a tax based on the quantity of an item regardless of price, ranging only from 2 to 6.3 percent of the wholesale log value (Bautista1990), which resulted in the minimal contribution of timber production to the national economy while permit holders rake in higher profits. this period of tLA issuance legitimized widespread logging operations and accelerated deforestation.

the logging industry brought significant income to the country but the gain went mostly to the hands of investors. Accountability and responsibility were not clearly mandated because timber harvest permits for tLAs were dispensed through a patronage system, benefiting mostly politicians and influential people close to the high-ranking government officials. even under the period of selective logging system, favoured tLA holders were allowed overcutting in the natural forests (guiang, 2003).

the status of our forest today serves as strong evidence of the irresponsible utilization of resources by these permit holders, as well as the inadequacy of government to regulate them. though some studies conclude that deforestation cannot merely be blamed on tLA holders, these legal logging operations opened the natural forests to slash and burn cultivation, illegal logging activities, and commercial and agricultural expansion.

Post-TLA agreements. After the 1987 Constitution was promulgated, the tLA was replaced by the ifMA, socialized forest Management Agreement (sifMA), and Community-Based forest Management Agreement (CBfMA): agreements issued to concessionaires for logging and plantation development, ranging in size from 500 to 40,000 ha (ifMA); to 1 to 500 ha for families or people’s organizations (sifMA) or to community organizations living within or adjacent to residual or second growth forest areas (CBfMA). tLA awardees were also given a chance to obtain a new 25-year tenure before the expiration of the leases.

the government stopped issuing new tLAs in 1987. however, Pd 705 was still utilized to grant a total of 292 ifMAs, industrial tree Plantations License Agreements (itPLAs), and timber forest

From the 1950s to

the mid-1990s, forest

charges were applied

at an ad valorem rate,

a tax based on the

quantity of an item

regardless of price,

ranging only from 2

to 6.3 percent of the

wholesale log value

49

License Agreements (tfLAs) covering a total of 883,000 hectares nationwide and allow continued logging operations despite the efforts to curb the damage caused by over-logging under the tLA regime. the table below shows the identification number and size of areas covered by ifMAs, sifMAs, CBfMAs, tree farms and tLAs issued from 1970 to 2010.

table 4.1 Logging Permit types from 1970-2010.

Types of Agreements

1970-71 1980 1990 1995 2000 2005 2010

no. Area no. Area no. Area no. Area no. Area no. Area no. Area

tLA 461 10,598 261 7,939 97 3,762 41 1,600 19 910 18 825 6* 325

IFmA/ItPLA 12 88 81 304 248 538 184 548 178 713 154** 907

cbFmA 37 107 4885 5482 1781 1622 1786* 1622

sIFmA 756 22.4 1837 40.3 1803* 35.6

treeFarm 104 10 195 123 212 115 235 110 222 107 143* 74.2

SOurCE: Philippine Forestry statistics, 1980, 1990, 1995, 2000, 2005. 2010 data from PFs 2008* and Fmb 2010**

According to the Philippine forestry statistics (2006), there are 11 existing tLAs with a total of 495,000 hectares and an annual allowable cut of 307,558 cu. meters located in the already over-logged and visibly degraded areas of surigao del sur, Agusan del sur, Lanao del norte, Zamboanga del sur, Quezon Province, isabela, and Cagayan. reforestation remains inadequate in these areas that were made prone to landslides, mudslides and flashfloods by forest destruction.

From TLAs to IFMAs: Plantation Development and Expansion. Alongside the tLAs, the government promoted the spread of industrial forest plantations from the early 1970s onwards. By 1973, government forestry administrators recognized that the natural forest was not an inexhaustible resource, and that there was a need to augment timber resources through industrial forest plantations. Pd 705 encouraged the establishment of industrial tree plantations (itP), tree farms (tf) and agro-forestry farms. A minimum of 100 ha can be leased for itPs and 10 ha for tfs. incentives for these included nominal application and filing fee, free rental for the first 5 years, and reduction up to 25% of forest charges on products from these plantations.


50


the reduction and prohibition of tLAs by the national government does not mean that legal logging ceased. Logging continued, but this time, through the issuance of ifMAs and other instruments. similar to the case of tLAs, the ifMAs were used as fronts for unauthorized or excessive logging in the country’s remaining natural forest. dao 99-53 (regulations governing ifMA) also restored the privilege of harvesting in adequately-stocked secondary forests and allowed the sale of timber felled in areas prepared for plantation establishment.

the following are among the incentives provided to ifMA holders:

• Capacity to interplant agricultural or secondary crops between rows of trees in areas designated for integrated forest Management (ifM)

• right to harvest, sell and utilize trees, crops and other products• right to engage in the export of logs, lumber and other forest

products harvested (except logs or unprocessed lumber from natural forests)

• exemption of all plantation products from forest charges• Minimal charge for land rentals• entitlement to all relevant incentives in the omnibus

investment Code• transfer plantations at least three years old to rural

cooperatives upon fair compensation or payment• use plantation crops at least three years old as collateral

for loans from government development banks, financial institutions, or government-owned and controlled corporations

• secure access to more or a new ifMA upon successful compliance with terms of original ifMA

As a result, over 127,400 ha were awarded to 126 companies for plantation development from 1993 to 1998 through ifMAs. in addition, any tLA can be automatically converted to an ifMA if the tLA holder has proven to be a capable forest manager. this was the case with Paper industries Corporation of the Philippines (PiCoP), which filed an automatic conversion from tLA to ifMA holder in 2009 for its concession area in surigao del sur and Agusan del sur.

51

despite opposition from Manobo indigenous peoples who stood firm for the integrity of the forests within their ancestral domain, Ventura timber Corporation’s ifMA was approved from 2010 until 2035. According to the Kahugpungan sa Tribung Mamanwa-Manobo leaders, it was granted without the proper fPiC process.

the issuance of eo 263 in 1995 further encouraged forest plantation of timber and forest resources in the community context. since then, plantation development from the government side has been mostly donor-driven, tapering off when foreign-funded projects end, while plantation establishment by the private sector has failed to stop harvesting and encroachment within natural forests. the changes and so-called reforms in forest policies (see Annex B) were not enough to rehabilitate Philippine forests, and in fact adhered to a dated and exploitative orientation on forest resource management. .

3. PoLiCy shifts to sustAinAbLe forest mAnAgement hAve fAiLed to substAntiALLy reCover And rehAbiLitAte Lost forest Cover, ensure Community weLfAre, And good governAnCe.from the mid-1980s to the mid-1990s, the government attempted to shift its policy towards sustainable forest management. this was brought upon by the reality of massive forest cover loss; changes related to the adoption of a new Constitution in 1987 after the downfall of the Marcos dictatorship; the adoption of the Philippine strategy for sustainable development (Pssd) in 1987 and Philippine Agenda 21 in 1992; and the adoption of community-based forest management as the national strategy for sustainable forest development in 1995. these policies were further propped up by the passage of more laws supporting sustainable forest management as a strategy, including the niPAs Act in 1992 (rA 7586) and iPrA in 1997 (rA 8371).

the Philippine Master Plan for forestry development (MPfd) was prepared in 1989-1990 and served as the blueprint for forestry development for the next 25 years, aiming for a.) equitable access of all filipinos to opportunities to develop and manage the forest and partake of benefits derived from it, b.) scientific management, conservation, and utilization of forest resources by a mix of managers from the private and the local


52


communities in partnership with the government; and c.) in appropriate ways and on a sustainable basis, satisfaction of the needs of the people for forest-based commodities, services and amenities. the reorganization of denr or eo 192 in 1987 also lessened the power of Bureau of forest development (Bfd) in terms of policy implementation or execution and channeled it to the forest Management Bureau under the denr and its regional, provincial, and community administrators.

Mixed results for Community Based Forest Management (CBFM). the enactment of CBfM as a primary strategy in managing forests was devolved around the regions in the Philippines. As of 2009, there are more than 1,790 CBfM agreements covering more than 1.6 million hectares of forestlands. the denr oversees the implementation of CBfM, while the supervision and control for protection, management, utilization, and development are the function of Lgus and communities.

Community forestry is a type of forestry where organized groups of people use and manage forests communally. the government’s attempt to adopt the CBfM strategy was paved with good intentions but ended up contradicting its very aspirations to give the power over forest resources back to the people. Positive outcomes were limited while many weaknesses, limitations, and failures in implementation as well as inadequate policy articulation were noted.

Difficulty in prioritizing reforestation over plantation development. it was obvious, even then, that the immediate reforestation of barren lands needed to take precedence over timber production. even fruit trees were considered eligible for development of “forest plantations.” in an attempt to help rehabilitate denuded watersheds and use barren public forestland for the production of commercial wood and fruits, Presidential Letter of instruction no.145, issued in november 1973, directed the Presidential Committee on Wood industries development to submit a programme “to promote the development of industrial plantations and tree farms, to help ensure wholesome ecological balance and broaden the resource base of the (forest-based) industries” (domingo1983). this

this notion that

“reforestation” and

“forest plantation

development” were

synonymous would

filter down through

generations of forest

administrators, and

would significantly

impact the formulation

of forest plantation

development policies,

strategies and

programmes

53

notion that “reforestation” and “forest plantation development” were synonymous would filter down through generations of forest administrators, and would significantly impact the formulation of forest plantation development policies, strategies and programmes.

throughout this period, the supposed objective of forest plantation development was for environmental considerations and not wood production. official pronouncements, however, emphasized the need to augment the wood supplies through plantations. As such, the government failed to engage logging companies and the private sector in reforestation activities. industrial plantation development was pursued and incentivized to address forest degradation and timber supply demand. Various rehabilitation projects created conditions for graft and corruption, while the government remained unable to pay back massive loans for large-scale reforestation. to date, the rate of deforestation is much higher than the rate of rehabilitation.

Weak implementation. A closer look at the CBfM system reveals that the denr still has full control over the implementation of CBfMs. Weaknesses in implementation at the community and Lgu levels (such as lack of capacity, skills, personnel and financial resources and different priorities) allowed the denr to take over the control of a larger portion of forestlands. Most denr projects were supported by foreign funding agencies, while social forestry projects devolved to Lgus and communities were funded by national and local agencies .

thus, though power should be given to communities, in practice, many CBfM areas did not feel any sense of power over managing forests due to inequitable and discriminatory sharing of benefits and resources. the study of dahal and Capistrano (2006) shows the weaknesses of the implementation of CBfM and its ignored portion from CBfM areas in Quirino and nueva Viscaya. Problems in these particular cases were the poor transparency in the use of funds and lack of an auditing system, unethical activities, mismanagement, uncontrolled resource utilization, and concentration of profits and decision-making among traditional elites.


54


Production forestry has great potential in CBfM areas; however the economic potential for forest resource harvesting and gathering also led to the overexploitation and political conflicts within and among organizations. to date, the objectives of poverty alleviation, community empowerment, and environmental management objectives of the CBfM strategy have not been attained.

Devolution not the only solution. the larger challenge of good governance and the devolution of power in the context of Philippine society remains an issue that affects the management and conservation of forestlands. the Local government Code (rA 7160), designed to redress the skewed power relations between the central and local governments, allowed the devolution of the management of environment and natural resources and opened up opportunities for Lgus to enter into co-management agreements with the denr for the protection and management of forestlands, especially in areas that have been declared communal watershed reservations but were previously unmanaged.

however, this devolution still resulted in mismanagement because of conflicts within and between Lgus. rA 7160 also applies only up to municipal level and doesn’t include barangays, the basic level of governance and the closest structure which deals with civil society and has the greatest knowledge on the needs and priorities of communities. there is also the problem of control over lands by private partners and other elite entities. Lgus also have yet to fully recognize and significantly involve communities in forest management devolution. 4. reCent PoLiCies under the Aquino AdministrAtion Continue to Cover uP the reAL reAsons for deforestAtion And Contribute to forest Cover Loss. Various regimes, including the current administration, have inadequately responded to the need for substantial forestry policy reforms. on february 1, 2011, after the landslides and flashfloods in Visayas and Mindanao triggered by heavy rains, President Aquino issued eo 23 declaring a moratorium on the cutting

the larger challenge

of good governance

and the devolution of

power in the context

of Philippine society

remains an issue that

affects the management

and conservation of

forestlands

55

and harvesting of timber in the natural and residual forests and creating an anti-illegal logging task force. shortly afterwards, denr-Mo no.52 suspended the issuance of new logging contracts. that same month, President Aquino issued eo 26, or the national greening Program (ngP) to plant 1.5 billion trees covering about 1.5 million ha for six years from 2011 to 2016—a challenge not only in terms of implementation but also in terms of governance.


Evading the real problems. the Aquino administration’s eo 23 contains many loopholes and drawbacks that might very well legalize the current state of forest plunder. these include the fact that eo 23 does not revoke or categorically ban commercial logging which is mainly responsible for deforestation; existing ifMA, sifMA, CBfMA, and even tLA permits are not automatically revoked but are subject to evaluation. timber companies with existing permits could still legally cut trees, in the assumption that they operate outside prohibited natural and residual forests. Additional logging exemptions, such as allowing

56


logging in ‘plantation forests’, road construction areas, and mining areas (which can all affect and disturb natural processes within forest ecosystems), also render the eo inutile and incapable of stopping any more large-scale deforestation.

Policy reforms promote business as usual. Aside from the aforementioned initiatives at the executive level, the Philippine legislature has also tackled several proposed comprehensive forestry bills to replace Pd 705. Versions of the sustainable forest Management (sfM) bill are currently being discussed in the Congress and senate.

on the surface, these bills seek to reorient Philippine forest policy and introduce new frameworks (such as the watershed system, protection and rehabilitation as priority concerns, and the professionalization of forestry education) that have evolved since the time of Pd 705. however, they contain many dangerous loopholes which, if not addressed, will allow “business as usual” to proceed: including mining in forestlands and the opening up of more plantation forests to public-private partnerships and the use of tenurial agreements. Moreover, the bills lack stronger and clearly-defined mechanisms and provisions to ensure the protection of people’s interests and national patrimony, despite the lip service to uphold the sustainable utilization, management, development, protection and conservation of forest ecosystems.

Among the many remaining issues that the bills fail to address are:• Prioritization of rehabilitation and restoration of degraded

and/or denuded forestlands over production• Complete evaluation of all permit holders (all violations should

be considered)• Alternative livelihood for forest-dependent upland settlers• need for stronger mechanisms to support CBfM as a principal

strategy in forest management• need for more stringent standards and multi-sectoral

processes to reclassify forestlands• need for broader consultative and decision-making processes

with people’s participation

they contain

many dangerous

loopholes which, if not

addressed, will allow

“business as usual”

to proceed: including

mining in forestlands

and the opening up

of more plantation

forests to public-

private partnerships

and the use of tenurial

agreements

57

• Clearer definition and classification of stakeholders and their privileges, rights, roles, and functions

• implications of security of tenure for stakeholders, particularly if priority is given to private investors and not the community

• need for stronger provisions that will consider and respect the rights of indigenous peoples in the utilization and management of forest resources

• Bias of incentive system towards plantation forests, from maintenance to monitoring and evaluation.

• unclear distinctions/ classifications between mineral lands and forestlands

58


59

v. emerging PoLiCy ChALLenges imPacts oF climate change and mining on Forests

When Pd 705 was first promulgated in 1975, the impacts of climate change and large-scale mining were not considered in policy framework. however, in recent years, there has been

growing recognition of their long-term socio-economic and ecological threats. it is necessary to acknowledge and address these issues in any future policy reforms.

Forests and climate change. Changes in the state of our forests and our climate are interrelated. deforestation (through forest fires, for instance) aggravates the current state of global warming and greenhouse gas emissions by releasing billions of tons of carbon dioxide annually.

Conversely, the resulting loss of forest resources and the degradation of forest ecosystems render areas more vulnerable to climate change impacts. More frequent and intense weather events (such as typhoons and rainfall extremes) are expected, altering and disrupting existing dynamics between ecosystems and the life cycles of various organisms. for instance, soil erosion and landslides due to deforestation and extreme rainfall events have significant effects on forest regeneration, recovery and productivity as well as the availability of water and forest products or services. these can trigger major disturbances to human life, aggravating existing socio-economic burdens and human suffering.

People rely on forests for their livelihood, fuel sources, and traditional medicines. these interlinked ecological issues of climate change impacts and deforestation have strong and varied

Climate Change is ‘a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’ (unFccc, 2001). climate change is considered to be one of the major threats to sustainable development because of its effects on health, infrastructure, settlements, agriculture and food security, and forest ecosystems

human activities that cause this phenomenon include excessive burning of oil, coal and gas for industrial and transport activities. since the beginning of the industrial era, these activities have increased the atmospheric concentrations of greenhouse gases. these greenhouse gases are “heat-trapping” gases found in the atmosphere that absorbs and emits radiation within the thermal infrared range.

60


impacts on the socio-economic welfare of upland communities. these include: • direct impacts of extreme weather events• decrease in timber production, quality, and market value • Loss of housing• Adverse effects on health and food availability• Loss of employment or changes in working conditions• Loss or reduction of income• Loss or changes in cultural habits

deforestation and inadequate governance systems also lessen the adaptive capacity of poor rural communities towards climate change impacts. even as many upland communities can develop coping schemes for climate change adaptation, the lack of tenurial rights and lack of support from the government vastly reduces the possibility of promoting and successfully implementing such strategies.

Forests and carbon trading. the idea behind carbon trading is similar to the trading of securities or commodities in a marketplace. Carbon is assigned an economic value, allowing people, companies or nations to trade it. nations standing as buyers would then have rights to emit carbon while sellers would be reducing their emission rights. Carbon trading was proposed by developed nations as one of the “clean development mechanisms” to pursue the aims of the Kyoto Protocol. the Protocol was signed by 180 countries in 1997, which called for 38 industrialized countries to reduce their greenhouse gas emissions between the years 2008 to 2012 to levels that are 5.2% lower than those of 1990.

the free market mechanism of emissions trading has its implications, especially on underdeveloped countries.While carbon trading is touted as a a win-win situation, the current disparities and relations of power between rich and poor countries remain major considerations, as emissions can only be traded to the highest bidders. unregulated issuance of emissions credits may also end up contributing to more net carbon dioxide emissions and pollution. Lastly, old growth forests risk being deprioritized, as they have slower carbon

deforestation and

inadequate governance

systems also lessen

the adaptive capacity of

poor rural communities

towards climate change

impacts

61

absorption rates; making them vulnerable to clearing and conversion to plantations of fast-growing tree species.

Forests and Mining. Philippine forests are considered as one of the richest in terms of natural resources. Beneath such green cover also lies vast and largely untapped mineral wealth; the country having some of the largest deposits of copper, nickel, and iron ore worldwide.

the Philippines has a liberal mining policy keeping the industry export-oriented, extractive, and import-dependent as a whole. thus mining has failed to bring about sustainable and long-term economic benefits and has in fact contributed to many environmental disasters and human rights violations across the nation. it has been a major cause of deforestation and forest ecosystem degradation as mineral lands are located in mountainous and forested locations.

Threat to biodiversity. Minerals exploitation affects forest ecosystems. Biodiversity and habitats are affected at all phases of mining, by activities and processes (such as site preparation and excavation to the actual operations and storage of mine waste) and by the actual physical and chemical impacts of mining (such as erosion and acid mine drainage). ground organisms, water quality, aquatic and wildlife species are also affected. it is important to note that the required reforestation efforts after mining cannot fully restore the original biodiversity of the forest. regeneration is often limited as soil and water habitats remain contaminated, especially if mining firms neglect proper waste treatment and effective site rehabilitation.

Philippine mining policies have likewise been ineffective as far as forest conservation, management and protection is concerned. Laws and programs have focused more on sanctioning the ever increasing extraction of mineral resources for supposed economic benefits, and have failed to ensure that least damage is done to biodiversity, ecosystems and affected communities. section 72

roLes of forests in CLimAte ChAnge

Accordingto the FAo, forests have four major roles in climate change:

•Contribute about one-sixth of global carbon emissions when cleared, overused or degraded;

•React sensitively to a changing climate

•Produce wood fuels as a benign alternative to fossil fuels

•Absorb about one-tenth of global carbon emissions projected for the first half of this century

Forests as carbon sinks. global carbon deposits are found in what is classified as ocean, terrestrial, atmospheric and miscellaneous carbon pools. the term ‘carbon stocks’ is used to denote carbon stored in terrestrial ecosystems: in trees and plant biomass, dead organic matter, and in the soil.

Forests store large quantities of carbon, absorbing an estimated five out of 32 billion tons of carbon dioxide emitted annually by human activities. trees remove carbon dioxide from the atmosphere by converting it into food or energy during photosynthesis. when they are destroyed or damaged, burned and decayed wood and debris release their stored carbon stocks in the form of carbon dioxide, increasing the level of heat-trapping ghgs in the atmosphere. Larger amounts of carbon stocks are found in peatlands, which are estimated to collectively contain 550 gigatonnes of carbon or twice as much as those stored in the world’s forests.

emerging Policy Challenges: impacts of Climate Change and mining on forests

62


of republic Act 7942 (Philippine Mining Act of 1995), for instance, specifically allows the granting of timber rights to mining concession holders, giving a contractor the right to cut trees or timber within one’s mining tenement as deemed necessary for operations.

from 1995 onwards, the government’s shift from being a regulator to an “active promoter” of mining liberalization has effectively put in place a policy climate for more massive forest and mineral resource extraction. if Philippine forests are to be protected and rehabilitated, there is a need for significantly reorienting the government’s current framework towards the mining industry, institutionalizing more comprehensive, coherent and effective regulatory mechanisms, and strengthening access to redress by communities and environmental interest groups.

Need for a comprehensive environmental framework. the related issues of climate change and mining impacts on the Philippines—which have been related to major environmental tragedies in the past decade—should be recognized and also addressed in the country’s forest policies and programs. Likewise, climate change and mining policies must be reoriented towards acknowledging the chronic state of deforestation in the country and support national efforts for the rehabilitation, protection, and restoration of forest cover. only through such a comprehensive and holistic strategy can future ecological disasters and socio-economic problems be significantly mitigated and addressed.

If Philippine forests

are to be protected and

rehabilitated, there is

a need for significantly

reorienting the

government’s current

framework towards the

mining industry

64


65

vi. A Pro-PeoPLe And Pro-forest PoLiCy recommendations For Forest resource management

forests are a major source of life for the filipino people; it is thus the government’s responsibility to not just utilize but to also protect and sustain its resources for future

generations. The current state of Philippine forests attests to the need for substantial changes in policies encompassing the production, protection, conservation, utilization and rehabilitation of the country’s forest resources. The urgency for policy change is underscored by emerging threats, such as the rise of disasters related to deforestation, climate change impacts, and mining.

it is high time to review Pd 705 (forestry Code of the Philippines) which embodies all the Philippine policies governing forestry issues for almost 36 years. it should be repealed to address the current crisis of deforestation and respond to the threats of the present. the continuing loss of more forestlands emphasizes that both forest policy and its implementing structures have failed to manage forest resources sustainably and ensure replenishment and rehabilitation of forestlands. in retrospect, Pd 705 is a reflection of the larger state of inequitable power relations, weak governance, and the government’s lack of political will to pursue pro-people and pro-environment reforms. it maintains and perpetuates the state of cronyism and corruption, weak implementation and mismanagement, and lack of public participation in the management of natural resources.

the continuing loss

of more forestlands

emphasizes that both forest

policy and its implementing

structures have failed

to manage forest

resources sustainably

and ensure replenishment

and rehabilitation of

forestlands.

66


While there have been attempts to propose a new forestry law in the 15th Congress (such as the - sustainable forest ecosystem Management Act), these have yet to fully address the problems, policy issues, and emerging challenges - in the foresty sector. this section forwards several proposals and concerns that a new policy for forest resource management should directly address.

reCommendAtions for A Pro-PeoPLe And Pro-forest PoLiCy A new forest law should ensure the following:

1. Protection and rehabilitation should be the primary concern and framework for managing forestlandsA new forestry bill should focus on how existing problems of the forestry sector, such as the rapid decline of forest cover and loss of biodiversity, should be resolutely addressed. it should incorporate and adopt the frameworks of sustainable utilization, management, development, protection and conservation of forest ecosystems and should have a clear and definite statement on how these frameworks and principles will be concretely implemented and prioritized.

While current policy statements pay lip service by declaring the rehabilitation and restoration of degraded and/or denuded forest lands as priority concerns, they also declare that forests are to be rehabilitated for production purposes.

this contradiction of priorities should be clarified and resolved. Considering the current crisis of deforestation, a new policy should clearly declare the rehabilitation and restoration of degraded and/or denuded forest lands as a priority concern over rehabilitation for production purposes.

At this point in history, a new forest law should promote rehabilitation and restoration of degraded forestlands back to their original condition, as much as possible, over merely balancing the protection and production aspects of forests. if the main concern is to resolve the prompt loss of forest cover and to save the forest from critical decline, any relevant policy should prioritize rehabilitation for conservation over production. for instance, harvesting activities in remaining

A new forest law should

promote rehabilitation

and restoration of

degraded forestlands

back to their original

condition, as much as

possible, over merely

balancing the protection

and production aspects

of forests

67

old-growth, residual and secondary-growth forests (which need more protection and conservation efforts) should be limited to salvaging of damage and over-matured trees for domestic consumption, and not for commercial purposes.

Protection as the primary concern should focus on improving the condition of remaining natural forests for ecological balance rather than on commercially-oriented projections for increased productivity or economic benefits and on proposing generous incentives for plantation forests, logging concessionaires and industries. remaining old-growth and developing residual or secondary-growth forests (where protected areas are usually located) must be conserved if preservation is not feasible. Policy should also expand the incentives for forest protection and rehabilitation, and clearly define the differences among the types of incentives given to concessionaires.

2. Delineation of forestlands must employ more stringent standards and ensure people’s participation A new forestry law should institute more stringent standards and multisectoral processes to reclassify forestlands.

this should limit the scope of production forests for utilization, avoid aggravating the current situation, where 75 percent of the country’s forestlands are already classified as production areas.

More stringent and comprehensive parameters for classification of forest lands must be employed. they should not just be limited to scope, but should also consider factors such as altitude, climate, soil, existing vegetation, management needs, and geologic characteristics and hazards. unclear distinctions or classifications between mineral lands and forestlands, which have increased the areas where mining is allowed, must be resolved. Mining in forests should only be done inside designated mineral lands, and not in areas classified as forestlands.

A Pro-People and Pro-forest Policy: recommendations for forest resource management

unclear distinctions

or classifications

between mineral lands

and forestlands, which

have increased the

areas where mining

is allowed, must be

resolved

68


there should be mechanisms that will ensure public participation and consultation with stakeholders in the delineation of forestlands. decisions regarding forest resources utilization should not be solely lodged at the hands of the denr, but expanded to reflect the interests of stakeholders. the government should adopt a multisectoral approach in forestland delineation and decision-making, including the participation of academe, civil society, communities, and local government units to arrive at a more objective, consultative and comprehensive decision over partitioning forestlands.

3. Identification and involvement of primary stakeholders in forest resources managementA new forestry law should clearly define who its primary stakeholders are. it should answer the question: who shall benefit most from our forest resources and will be granted more rights? if the stakeholders (who may range from communities to private companies) are not clearly defined, the danger of giving more incentives, privileges, and tenure over forestlands to the same corporate interests primarily responsible for deforestation remains.

A new law should clearly classify primary stakeholders based on their roles and functions in forest management and strengthen collaboration between various stakeholders in the direct management of forestlands. it should consider indigenous peoples and upland communities as primary stakeholders and stewards of the forest and give them priority in terms of access to privileges and security of tenure.

if these areas are not clarified, there is a large possibility that private investors, not the community, would be prioritized for tenurial grants since both are considered stakeholders under the current policy. the lack of clarity on who the priority stakeholders are could increase the number of privately owned forestlands and result in the further displacement of already marginalized upland communities. the direct involvement of priority stakeholders is also crucial for the success of any meaningful and appropriate rehabilitation and reforestation strategy; weak participation among forest communities is

It should consider

indigenous peoples and

upland communities as

primary stakeholders

and stewards of the

forest and give them

priority in terms of

access to privileges and

security of tenure

69

related to the lack of recognition of their rights and security of tenure in forestlands.

4. Respect for indigenous peoples rightsA new forestry bill needs to strengthen provisions that will consider and respect the rights and welfare of indigenous peoples in the utilization of forestlands within their ancestral domain and not impede their cultural ways of living and vested rights. they must be considered in every activity that will be done inside their territory. Privilege in resource utilization should be given to enhance their power over management of forest inside ancestral domains.

indigenous peoples, who are certain to be adversely affected by iniquities in the law, should be given security of tenure among community stakeholders to enhance their participation in decision-making on proposed commercial activities and the management and protection of forestlands. they must be represented in all formations of local decision-making bodies as the primary stakeholders of forestlands. Additional mechanisms ensuring the welfare of iP communities who to date lack claims and titles over their ancestral lands should be studied and supported.

5. Support for forestry education, research, and scientific

developmentA new forestry bill should support forestry education, research and development, and forestry extension services as a support system for the Philippine forestry sector. this will generate support for research development, invention and innovation in the field of forestry, and strengthen the existing scientific and technological capacities of the national and local government and domestic research institutions to better engage in and implement forest protection, rehabilitation and appropriate climate change adaptation and mitigation programs.

institutional support will help upgrade the country’s capacity to accurately monitor forest cover. Logging and

A Pro-People and Pro-forest Policy: recommendations for forest resource management

70


other extractive activities especially in areas of high species endemicity need to be closely, regularly and scientifically monitored because the impacts of logging are severe, especially in an archipelagic country like the Philippines.

Better institutional and technical capacity would also help define which domestic strategies are best to address the related issues of climate change, forest protection, and people’s welfare in the long run. Adaptation and mitigation are complementary strategies: mitigation attempts to address the causes of climate change while adaptation deals with consequences and impacts by increasing the people’s resilience and capacity to cope.

Adaptation strategies in the forestry sector include ensuring enough forests are left in watersheds to slow soil erosion; preserving forest corridors to enable wildlife and plant species to move into sustainable climates; charting buffer zones to stop the spread of forest fires and planting tree species that can tolerate higher temperatures and extreme weather events. Mitigation activities include afforestation and reforestation; substitution through wood products; reduction of emissions from deforestation and forest degradation; improvement of forest management; and forest restoration. Most mitigation efforts must come from reducing the use of fossil fuels in industrialized countries, rather than in developing countries. the development of domestic science and technological capacity is crucial to determining which strategies should be best employed at the local and national level, as well as weighing the implications and impacts of such strategies.

6. Stronger support mechanisms for community-based forest management there should be stronger mechanisms to support community-based forest management (CBfM) as a principal strategy in forest management. A new policy must avoid repeating Pd 705’s failures in terms of implementation, lack of transparency, failure to address the needs of community, and institutionalized corruption related to the devolvement of forest management.

Logging and other

extractive activities

especially in areas

of high species

endemicity need to

be closely, regularly

and scientifically

monitored because the

impacts of logging are

severe, especially in an

archipelagic country

like the Philippines

71

A review of factors contributing to the high failure rate of CBfMs under the old policy must be pursued in order to aid the formulation of new legislation and policies. Mechanisms to ensure the stronger involvement of local communities, forest dependent families, and indigenous peoples in undertaking and participating in the sustainable management and development of appropriate forestland resources should be studied and included in any new policy. these should strengthen the power and role of communities over partner organizations, and commercial or political elite interests.

7. Premium on the implementation of a genuine agrarian reform programA new forestry bill should support a genuine reform program and appropriate agrarian services to strengthen protection of forest and its resources. farmers/people tend to exploit forest and convert it to agricultural purposes because of issues and problems in land ownership in the lowlands. these land conversions directly affect not only the forest itself but the biodiversity in it.

8. Comprehensive evaluation of existing tenement holders A new forestry bill should have a provision that strictly assesses and evaluates the tenure holders’ performance.

the story of the Philippine forests and forest policy over the last century is a narrative of plunder that has been institutionalized by colonial and local elite interests throughout history. the current situation of the country’s forests and the rising trend of disasters underscore the urgent need for forest policy reform and good governance. thousands of lives and communities are at stake in the continuing struggle to protect the Philippine forests. it is imperative for the government to review, repeal, and reorient Philippine forest policy to address the real roots of deforestation and build a policy climate that can respond to emerging threats of climate change. through this can the country move a step closer to a pro-environment and pro-people forestry policy and governance.

72


73

AfterwordPhiliPPine Forests and the Failure oF Policy

the previous chapters discussed the current status of Philippine forestry and failure in the policy implementation which serve as smokescreens for wanton forest degradation. government schemes

to save the country’s remaining forests such as reforestation programs, reforming forest policies and different public-private partnerships turned out to be part of the problem, rather than solutions to the forest crisis. Key factors in this problem are the lax government implementation of rules and regulation on forest management and protection and the vulnerability of current laws to exploitation by the private sector and illegal loggers.

to redeem itself, the Aquino government issued executive order 23. the order restores the privilege of harvesting in adequately stocked secondary forests and allows the sale of timber felled in areas prepared for plantation establishment. the exemption on the ban on cutting naturally-growing trees further facilitates forest destruction, as this enabled ifMA holders to apply for industrial tree plantation, which is basically another means to log out more forests.

the same exemption applies to other forestland tenure instruments such as socialized forest Management Agreements and even Community Based forest Management Agreements permitting more concessionaires to set up tree plantations.

the implementation of eo 23, however, did not stop the current administration from granting two new timber agreement permits to M. A. JiMeneZ enterPrises, inC. with itPMA no. 01-2011 in dasol Pangasinan which covered 269.55 hectares and itPA no. 02-2011 in Zamboanga del norte covering 505 hectares owned by tessie J. yu (DENR, list of IFMA-ITPA 2012).

74


the exemptions for tree plantations defeat the supposed objective of eo 23, which was the imposition of a total log ban and protection of the country’s remaining forests. Meanwhile, the two timber agreement permits reveal the government’s preference for the satisfaction of business interests over forest protection and conservation.

the continuous plunder of our forests has resulted in catastrophes that claimed the lives of people and destroyed billions of worth of property and livelihood. the recent disaster typhoon Pablo, which devastated southern parts of logging capital Mindanao, is evidence that the government is a conspirator of large-scale logging companies for the destruction of natural forests. thousands of poor farmers, indigenous people, children and women died in the tragedy, while those left behind now scavenge for basic necessities such as food and water. yet, despite the tragedy, Mindanao remains an asset peddled by the government to greedy logging companies.

Most of the areas hit by typhoon Pablo in 2012 are covered with ifMA permits. industrial forestry Management Agreement or ifMA is the government’s flagship program for reforestation, emphasizing “management” rather than extraction.

ifMA was meant to replace the notorious timber License Agreement (tLA) which accelerated the country’s deforestation, but as recent events show, the current forest policy was also instrumental in the further destruction of forests that led to the Pablo disaster.

the latest list of ifMA holders shows that more than 700,000 ha are covered by ifMAs in northern Mindanao, davao region and CArAgA—regions greatly affected by recent disasters (see Annex C).

there are a total of 52,978.00 hectares of existing ifMA permits in northern Mindanao, 103,386.39 hectares in davao region and 358,449.15 hectares in CArAgA region. in these regions, four were tLAs converted to ifMA; (1) surigao development Corporation in surigao del sur. ; (2) Ventura timber Corporation in Agusan del norte and Agusan del sur; (3) Artimco inc in

75

surigao del sur; and (4) Casilayan softwood development Corporation. the conversion of tLAs to ifMAs is another ironic scheme in forest management and protection, as this provides logging corporations with an option to extend, not halt, their operations with blessing from the government.

Kaingin farmers and small timber poachers have been blamed for the disaster, but the scale of devastation brought by Pablo cannot be accounted for by small-time farming and timber harvesting activities done by ordinary people. the disaster is the inevitable result of unmitigated forest destruction and land use conversion, and farmers and indigenous peoples should not be used as scapegoat by the real culprits behind deforestation.

76


A.C Baja-Lapis & M.L. santander. 2003.” the diversity of non-Wood forest species and the significant role of the indigenous Communities in the Philippines”.

g.s. Amacher & W.f. hyde. “Migration and the environment: the Case of Philippine uplands.” Journal of Philippine development XXiii, no. 2 (1996):425-439.

g.M. Baustista. 1990. “the forestry Crisis in the Philippines: nature, Causes and issues”

Percy e. sajise and elizabeth A. omegan, “the Changing upland Landscape of the northern Philippines,’ in Keepers of the Forest, ed. M. Poffenberger (hartford: Kumarian Press, 1990)

Peter M.Vitoasek, Paul r.ehrlich.Anne h.ehrlich et al., “human Appropriation of the Products of Photosynthesis,” Bioscience, Vol. 36, no. 6 (1986), pp. 368-373

World resources institute. 1992. World resources 1992-1993. new york: oxford university Press.http://wrm.org.uy/bulletin/161/Philippines.html

Chokkalingam u. et.al. 2006. one Century of forest rehabilitation in the Philippines: Approaches, outcomes and Lessons. The Center for International Forestry Research. Bogor, indonesia, department of environment and natural resources and College of forestry and natural resources, university of the Philippines Los Baños

guiang, ernesto. impacts and effectiveness of Logging Bans in natural forests, 2000.

institute of renewable natural resources, university of the Philippines in Los Baños College of forestry

What Lies Behind deforestation, ibon facts and figures, June 2005.

Magno, f.A. 1994. the contract reforestation program: policy issues and constraints. Philippine Journal of Public Administration 38 (3): 260-274.

iPCC, “the Physcial science Basis,” contribution of Working group i to fourth Assessment report:Climate Change 2007(geneva, switzerland: iPCC, 2007); iPCC, “impacts,

referenCes

77

Adaptations and Vulnerability,” contribution of Working group ii to fourth Assessment report: Climate Change 2007 (geneva, switzerland:iPCC,2007); iPCC, “Mitigation options,” contribution of Working group iii to fourth Assessment report: Climate Change 2007(geneva, switzerland:iPCC,2007), chapter 9.

Carmenza, Jobledo, jÜrgenblaser, sarah Byrne, and Kaspar schmidt. Climate Change and governance in the forest sector systems and Climate Change research Priorities for theu.s.Climate Change science Program http://www.usgcrp.gov/usgcrp/Library/ecosystems/eco-workshop-report-jun06.pdf

united nations department of economic and social Affairs 2009 indicators of sustainable developmentwww.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/poverty/without_electricity.pdf (13April2010).

investopedia staff. (n.d.). What is the carbon trade? retrieved november 3, 2011, from investopedia: http://www.investopedia.com/ask/answers/04/060404.asp#ixzz1chfiVqj3

(2011, november 3). retrieved from Carbon trade Watch: http://www.carbontradewatch.org/articles.html

don fullerton and gilberte.Metcalf(2002).”Cap and tradepoliciesinthe presenceofmonopolyanddistortionarytaxationý”.national Bureau of economic research. retrieved 2009-12-09.

Panganiban, r. (n.d.). tree-planting target impossible to hit. retrieved november 5, 2011, from inquirer.net: http://opinion.inquirer.net/57233/tree-planting-target-impossible-to-hit

Center for environmental Concerns-Philippines. (2012). Confronting the ecological Crisis. Quezon City: Center for environmental Concerns-Philippines.

78


signifiCAnt PhiLiPPine LAws And PoLiCies reLAted to forestry

DATE POLICY SALIENT FEATurES

Policies under Direct Colonial rule

1863 royal decree (rd) of 1863

established the Inspeccion General de Montes, the first forestry service institution in the Philippines. Licenses began to be required for timber cutting in public lands. Certificates for forest exploitation were issued to private companies.

1874 rd of 1874 the spanish government banned kaingin or swidden farming.

1900 general order 50 of April 14, 1900

renamed the forestry service to the bureau of Forestry and gave it the power to issue unlimited and indefinite timber concessions according to the resources of private, mostly American, corporations.

1901 Kaingin Law Allowed the prosecution, imprisonment, and eviction of kaingineros and other forest occupants

1904 Forest Act (Act 4418)

made the practice of kaingin no longer absolutely prohibited, but punishable if done without authorization.

1939 commonwealth Act no. 447 of 1939

stipulated that kaingin may be authorized by the directory of Forestry.

Post-Commonwealth-marcos dictatorship

1963 republic Act 3701 revised Kaingin Law. Forest occupants were denied access to forestlands as resident-cultivators in favour of those who introduced improvements and profited from the forestland.

1971 bureau of Forest development (bFd) circular 11

Implementation of the Forest occupancy management Program, based on the FAo 62 guideline. bFd, however, focused on management-in-place of forest occupants, while FAo 62 emphasized resettlement of forest occupants.

1975 Presidential decree 705 of 19 may 1975 (revised Forestry code)

strengthened the regulatory powers of the bureau of Forest development, reduced the focus on reforestation and rehabilitation of forestlands, and institutionalized the “timber-orientation” of many professional foresters. on the other hand, the code allowed “occupants” to rehabilitate forests and provided an opportunity for forestry workers in the private sector to organize cooperatives and participate as co-owners of concessions.

1975-1977

masaganang Kagubatan (Lush Forest) Project

Focused on educating people about the relationship of the forest with various components of the economy.

1977 Pd 1152 Philippine environmental code - Included provisions on the implementation of kaingin management and agroforestry

1979 ministry Administrative order (mAo) 1979-11

Adoption of communal tree Farming (ctF) as a strategy for reforestation and forest development

1979 bFd circular 45 Implementing guidelines in the Family Approach to reforestation (FAr) as a strategy for reforestation and forest development.

1980 mAo 1980-04 Allowed Industrial tree Plantations (ItP) in the denuded, inadequately stocked residual forest areas.

1982 Letter of Instruction 1260

Implementation of Integrated Social Forestry Program. The first program of a supposed reorientation of the country’s forestry program which acknowledged forest-based communities as stewards of the forest

Annex A

79

POST-EDSA I POLICIES

1988 national Forestation Program (nFP)

Funded by the Asian development bank (Adb) Forestry Program Loan, all reforestation activities were integrated into the nFP.

1988 republic Act 6657 comprehensive Agrarian reform Law – Purportedly a law to set up a sweeping social justice program, through land distribution and agrarian services in all especially private agricultural lands. With inherent flaws and low level of implementation, the law did not only fail to break the private monopoly of agricultural lands, but also allowed the distribution of public A&d and forested lands.

1992 republic Act 7586 national Integrated Protected Areas system, or nIPAs, Act - established biodiversity-rich areas as logging and mining-free.

1992 - 1997

department Administrative order (dAo) 1992-42, dAo 1997-07

ItPs were transformed into Industrial Forest management (IFm) areas, expanding its coverage to the planting of non-timber products such as bamboo, rattan, and rubber. IFm also included the management and protection of natural forests, and not just industrial plantation development.

1999 dAo 99-53 superseded and repealed dAo nos. 91-42, 94-60, and 97-04; Industrial Forest management Agreement was replaced with Integrated Forest management Agreement (IFmA)

1995 executive order (eo) 283

Institution of community-based Forest management (cbFm) as a national strategy for sustainable forest development

1997 rA 8371 Indigenous People’s rights Act, IPrA - recognition of indigenous people’s ancestral domain in forestlands

2004 eo 318 decreed sustainable Forest management (sFm) as a state policy

2004 dAo 59 conversion of forestlands into alienable and disposable lands under the special Forest Landuse Agreements (FLAg)

2010 executive order 23 declared a national moratorium on logging natural and residual forests

2010 executive order 26 national greening Program

Sources: 1. Institute of renewable natural resources, university of the Philippines-Los baños college of Forestry; 2. guiang, ernesto. Impacts and effectiveness of Logging bans in natural Forests, 2000.

80


summAry of government Agreements, terms, And Conditions

Governing Policies IFmA SIFmA CBFmA

Period of tenure 25 years, renewable for another 25 years

governing Policies • DAO 99-535(1999)• DAO 2003-216 (2003)

• DAO 96-247 (1996) • EO No.2631(1995)• DAO 292,IRR(1996)

maximum allowable permit area

40,000 ha 10 ha for individual500 ha for organizations/ groups

Participant Filipino citizens; partnerships, Filipino cooperatives or corporations; tLA holders may opt to convert their tLAs to IFmAs.

Filipino citizens, preferably residents of the municipality where the sIFmA area is; government employees with the consent of their respective heads of agency; Filipino cooperatives and associations based in the province where the sIFmA site is.

A group of at least 10 local Filipinocitizens (or an existing people’s organization or Po) residinginside or near forestlands

Issuing Authority denr secretary and recommendation of the Fmb

Penro (from 1 to 10 ha); red (more than 10 to 500 ha)

Penro – up to5,000 ha; red – more than 5,000 to 15,000 ha; undersecretary for operations - 15,000 to 30,000 ha; secretary - more than 30,000 ha.

rights and Privileges of Tenure holder

develop, manage,protect and utilize a specified area of forestland and its forest resource; harvest, sell and use planted trees and crops

harvest, sell and utilizeplanted trees and crops except those retained for environmentalpurposes; export logs, lumber and other forest products; be exempt from forest charges on all plantation products.

occupy/ use/ develop forestlands; allocate to members and enforce rights to use and manage forestland resources; be exempted from paying land rent and forest charges on timber and non-timber products; consultation and preferential access to assistance; receive income/ proceeds from use of forest resources; enter into contracts with private/government entities; allocate/endorse areas to be placed under Certificate of Stewardship contract.

Allowable Activities

reforestation, forest protection, harvesting of non-timber and timber products.

reforestation, forest protection, harvesting of timber and non-timber products from plantations.

Forest protection, reforestation, agro-forestry, harvesting of non-timber and timber forest products.

Annex b

81

Annex CList of ifmA hoLders from northern mindAnAo, dAvAo region And CArAgA, regions thAt were greAtLy AffeCted by the reCent disAsters.

NAmE OF IFmA HOLDEr

IFmA NO. rEGION PrOVINCE ArEA DATE ISSuED

DATE ExPIrATION

PLANTED ArEA

1. buKIdnon Forest Inc.

IFmA 6 r10 buKIdnon 38848.00 dec 23, 91 Aug 30, 19 28,448

2. e. PeLAeZ rAnch, Inc.

IFmA no. r10-95-001

r10 buKIdnon 1900.00 Aug 11, 95 Aug 30, 19 1249.24

3. PomPeyo t. mAnALAng

IFmA no. 04-2010

r10 mIsAmIs orIentAL

558.00 Feb 2, 10 Feb 23, 35 84.50

4. southwood tImber corPorAtIon

IFmA no. 02-2008

r10 mIsAmIs orIentAL

11476.00 may 23, 08 may 23, 33 311.95

5. c. ALcAntArA & sons, Inc.

IFmA 7 r11 dAvAo deL norte

19053.00 Feb 16, 90 dec 31, 14 2,053.49

6. ryc enterPrIses, Inc. (Formerly rudy chuA)

IFmA 28 r11 dAvAo deL norte

800.00 Aug 24, 92 dec 31, 17 132.00

7. dAvAo KAsAnAg FoundAtIon, Inc.(Kusog sa Katawhan Alang sa Kalabuan multi-purpose coop.

IFmA 15 r11 dAvAo deL sur

975.00 mar 17, 92 dec 31, 17 98.00

8. dAvAo esP resources,Inc.

IFmA 29 r11 dAvAo deL sur

503.00 Aug 24, 92 dec 31, 17 160.59

9. surIco, Inc. IFmA 58 r11 dAvAo deL sur

1000.00 sep 14, 94 dec 31, 19 0.00

10. eLmo dAyAnghIrAng

IFmA 01 r11 dAvAo orIentAL

100.00 Jun 8, 89 oct 6, 14 25.00

11. benIto mesInA IFmA 03 r11 dAvAo orIentAL

197.00 Feb 8, 91 dec 31, 14 93.78

82


NAmE OF IFmA HOLDEr


DATE ExPIrATION

PLANTED ArEA

12. toPsFIeLd, Inc. IFmA no. 2002-06

r11 dAvAo orIentAL

5625.00 Aug 29, 02 dec 31, 27 6.00

13. wILLIAm te IFmA 04 r11 dAvAo orIentAL

220.00 Feb 5, 91 dec 31, 14 104.34

14. PIcoP resources Inc.


14466.00 sep 2, 92 sep 2, 17 120.00

15. LA FortunA mAhogAny, Inc. (Formerly northwest mAhogAny, Inc.)

IFmA no. 2001-1

r11 dAvAo orIentAL

10873.00 Jan 11, 00 dec 31, 25 619.00

16. mAtuguInA IntegrAted wood Products, Inc.

IFmA no. 01-2008

r11 dAvAo orIentAL

27761.39 13/may/08 30/Apr/33 4,246.97

17. AsIA PuLP And PAPer Int., mILLs, Inc.


4188.00 mar 17, 92 dec 31, 18 235.00

18. LuPon bAnAy-bAnAy muLtI-PurPose cooP.


940.00 nov 9, 94 dec 31, 19 15.00

19. webenson y. vILArde


1960.00 nov 9, 94 dec 31, 19 56.00

20. LoueLLA guIneZ (Formerly under the name of wILbur guIneZ)


1000.00 nov 3, 95 dec 31, 19 337.50

21. KAdeL ALtIso IFmA 64 r11 dAvAo orIentAL

525.00 oct 16, 95 oct 16, 15 50.00

22. suPerIor tImber And constructIon corP.

IFmA no.01-06

r11 dAvAo orIentAL

4053.00 Jan 10, 06 dec 31, 31 51.00

23. AsIAn evergreen deveLoPment IncorPorAted

IFmA no. 15-2007

r11 dAvAo orIentAL

6159.00 30/Jul/07 31/Jul/32 12.50

83

NAmE OF IFmA HOLDEr


DATE ExPIrATION

PLANTED ArEA

24. cALFoLKs, Inc. IFmA no. 03-2009

r11 dAvAo orIentAL

2008.00 oct 9, 09 oct 9, 34

25. sKyLIne Agro-Forest corP.

IFmA no. 05 r13 AgusAn deL norte

2000.00 mar 19, 91 dec 31, 15

26. cAsILAyAn soFtwood dev.corPorAtIon

IFmA n0. 03-2008 (renewal)

r13 AgusAn deL sur

5000.00 dec 10, 08 Jan 1, 34 2,439.48

27. cAsILAyAn soFtwood dev.corPorAtIon

IFmA 07-2007

r13 AgusAn deL sur

12727.00 8/Jan/07 31/dec/31 96.00

28. ProvIdent tree FArms,Inc.

IFmA 001 r13 AgusAn deL sur

20770.00 oct 14, 91 dec 31, 17 1,993.88

29. royAL mAtch Inc.


5500.00 may 25, 92 dec 31, 17 3,333.23

30. extensIve wood ProcessIng corPorAtIon


6000.00 Jun 9, 92 dec 31, 17 1,966.70

31. royAL mAtch Inc.

IFmA 94-009 r13 AgusAn deL sur

1000.00 Aug 11, 94 Jun 30, 19 812.35

32. emco PLywood corP.

r10-95-002 r13 AgusAn deL sur

1712.00 nov 9, 95 nov 9, 20 283.80

33. shAnnALyne Inc (the IFmAs of shannalyne, Inc. (IFmA no. 98-001 and 98-002) and tecland, Inc (98-003 and 98-004) were integrated with the co-Prod. Agreement of shannalyne, Inc. on march 31, 2005.)

co-ProductIon shArIng Agreement

r13 AgusAn deL sur

172124.00 12/8/2001 addendum was signed 03/31/2005

dec 31, 26 3255

34. ArtImco, Inc. IFmA no. 13-2007

r13 surIgAo deL sur

11032.00 Jul 5, 07 Jun 30, 32

84


NAmE OF IFmA HOLDEr


DATE ExPIrATION

PLANTED ArEA

35. meJore woodworKs, Inc.

36.

37.

IFmA 02-2006

r13 surIgAo deL sur

22470.00 31/Aug/06 31/Aug/31

AgusAn deL sur

4772.00

surIgAo deL norte

9328.00

38. venturA tImber corPorAtIon

39

IFmA no. 02-2010

r13 surIgAo deL sur

4590.96 10/Feb/10 31/dec/35

AgusAn deL norte

2772.19

40. surIgAo deveLoPment corP.

IFmA no. 06-2009

r13 surIgAo deL sur

75671.00 4/nov/09 31/dec/34 3825

SOurCE: Forest management bureau (highlighted texts refer to tLAs converted to IFmAs)

Documents

Logged out - cecphils.org · CeC. it gives an update on current trends in the state of Philippine forests, examines policies and programs which have contributed to this situation,