202508/18
To strengthen the management of Taiwan’s forest resources and enhance the flexibility of land use, the Forestry and Nature Conservation Agency (FANCA) held a press conference today (08/18) to promulgate the revised “Guidelines for Incentives and Guidance on Afforestation,” announcing that the new regulations will be taking effect immediately. This amendment represents the most significant overhaul of afforestation policies in recent years. It comprehensively adjusted and completed six key revision directions. These include afforestation objectives, tree species selection, incentive period, reasonable incentive amount, supporting guidance operations, and afforestation locations. This shifts the policy direction toward diversified management strategies, balancing timber supply, ecological conservation, and land sustainability to drive comprehensive upgrades in forest management.
The Ministry of Agriculture (MOA) stated that the “Guidelines for Incentives and Guidance on Afforestation” have been implemented for more than 18 years since they were formulated in 2008. In the face of shifts in land use and economic structures, the guidelines’ design urgently required reform due to issues such as excessively long incentive periods, lack of flexibility in land management, and insufficient guidance measures. Since 2019, the FANCA has widely solicited input from forest owners, local governments, the forestry industry, environmental groups, and academics. After nearly two years of consultation, deliberation, and draft notice procedures, the guidelines have been restructured to achieve policy transformation.
The MOA noted that this amendment incorporates enhanced planning for “native tree species,” “diversified forest stands,” and “non-timber production forests” to prevent monoculture afforestation and ecological habitat destruction. Specifically, it categorizes afforestation types into production forests and non-production forests. These are then guided by suitability-oriented approaches, such as economic production and forest conservation, to better align with different forest attributes, farmers’ preferences, and land usage needs.
Key Amendments
- “Incentive Period Shortened to Six Years with Enhanced Payment Flexibility”
The original 20-year period has been reduced to six years. After the initial stage of afforestation is completed, operations for private land may be actively diversified based on the established afforestation targets, taking into account both economic production and ecological conservation values.
- “Tiered Incentives and Expanded Afforestation Guidance as Required”
- The incentive mechanism has been changed to a tiered system, with more diverse incentives: Increased the types and combinations of incentives, to be reviewed annually based on afforestation performance. Now, a NT$500,000 incentive over six years will be awarded if relevant requirements are met. In the sixth year, eligible afforestation participants may be awarded an additional NT$50,000 per hectare for established forests or NT$50,000 per hectare for structural timber based on the afforestation type and if regulations are met. The maximum incentive amount has been capped at NT$600,000 per hectare over a period of six years. This reduces the financial burden on forest owners while actively promoting afforestation management, which can enhance early-stage forest tending and improve outcomes.
- Afforestation areas have been expanded to include land with afforestation needs or land that can be used for forestry according to law
In addition to hillsides, the expansion includes specific areas that are beneficial to improving environmental quality if afforestation is implemented: level 1 groundwater control zones designated by the Water Act, pollution control zones designated by the Soil and Groundwater Pollution Remediation Act, and afforestation areas planned by local governments. However, to safeguard food production security, these areas must not be located within special agricultural zones (hillsides and plains) or general agricultural zones (plains).
- “Review and Monitoring Transparency to Enhance Implementation Efficiency”
The amendment listed the necessary afforestation conditions, application procedures, and review standards. It added the incentive types and designated tree species. It also strengthened the inspection, termination, and resource management mechanisms to establish a more flexible and efficient afforestation system.
Review and guidance will be carried out based on the forest owners’ management plans. A panel review will be conducted for secondary forests or applications for afforestation areas exceeding five hectares. Forest owners will submit afforestation outcome assessment forms every year, which will be reviewed and verified by government inspectors to ensure afforestation performance, improve forest management efficiency, and achieve long-term carbon neutrality goals.
- “Target Differentiation, Value Diversification, Transition Protection, and Guidance Continuity”
- Target differentiation guidance: Strengthen the classification of forest management objectives into “production forest” and “non-production forest,” and provide a tailored guidance mechanism to lay the foundation for diversified development, including the supply of domestic timber raw materials and the construction of ecosystems.
- Forest value diversification: Incentivize afforestation for diverse sustainable forestry objectives, including timber production, environmental and ecological functions, development of under-forest economy, and forest therapy, to lay the groundwork for future growth.
- Establish a transition mechanism: Protecting the rights and interests of forest owners
Conversion plans for existing afforestation projects are provided. Those originally approved for afforestation in the first to sixth year should apply to convert to the new system to maximize benefits. Those originally approved and in the seventh to 20th year can voluntarily choose to terminate the afforestation and be exempted from returning the incentives they have already received, or choose to continue with the old system until the end of the 20-year period. This will prevent affecting the rights and interests of forest owners during the transition period between the old and new systems.
- Seamless continuity of guidance measures across periods: Policy guidance measures are provided across all stages from tree planting to tending management, logging, and utilization. The initial stage features incentive guidance for afforestation, followed by diversified guidance plans for public or private forests post-afforestation. Targeted guidance ensures sustained implementation of the goals to achieve the vision of sustainable forests.
Policy Transformation Achieves Triple Win for Forest Owner’s Livelihoods, Production, and the Environment
The MOA stated that this amendment will transition afforestation incentive policies from a “subsidy-oriented approach” to “investment-oriented support.” Not only will this grant afforestation practitioners greater operational flexibility, it also aligns with Taiwan’s national policies for timber self-sufficiency and net-zero carbon emissions. Under the new system, forest owners can use the afforestation incentives to cover afforestation costs, as well as participate in the sustainable management of forest resources. After the afforestation incentive period is completed, they can continue to receive a variety of guidance measures for public or private forest management. These include mid- and late-stage afforestation and tending, forestry machinery subsidies, timber industry processing and forest product sales matching, under-forest economy, forest recreation development, environmental monitoring, and FSC certification. These efforts provide comprehensive guidance ranging from afforestation and sapling cultivation to industrial development, aiming to create an “ecological forestry” industry that achieves a triple win for forest owners’ livelihoods, production, and the environment.
Sustainable Forests Require Nationwide Participation
The MOA further pointed out that in response to the dual pressures of global climate change and domestic demand for forest resources, the MOA is using afforestation policies to drive practical actions. Forest owners, private legal entities (excluding tribal public enterprises), and unincorporated associations are invited to join the ranks of afforestation and forest management. The saplings planted today will become the foundation of sustainable forests in the future, revitalizing land value through green growth.
The FANCA will hold 10 briefing sessions across Taiwan from late August to the end of September this year (2025). The first session will be held on August 22 at the Tonghe Agricultural Science Business Hotel in the Pingtung Agricultural Biotechnology Park. Other sessions will be announced on the FANCA website (https://www.forest.gov.tw). For inquiries, please call (02-23515441 ext. 812). All are welcome to attend. For more information and application methods, please visit the FANCA’s official website:
https://www.forest.gov.tw/山林資源/植樹造林/