In Papua New Guinea, over one-third of all exported logs come from logging operations authorised under Forest Clearing Authorities (FCAs). Originally intended to enable land clearing for agriculture or other land-use changes, FCAs have increasingly become tools for large-scale, unsustainable logging, raising serious environmental, social, and governance concerns.
FCAs were introduced into the Forestry Act in 2000 to facilitate clearance of natural forest for agricultural or development projects, often linked to Special Agricultural and Business Leases (SABLs). However, due to widespread misuse and the questionable legitimacy of many SABLs, a Commission of Inquiry recommended cancelling most of these leases. Despite this, the PNG Forest Authority (PNGFA) continues to issue FCAs even where there is no underlying SABL lease, exacerbating the problem.
The Forestry Act outlines clear conditions for granting FCAs, requiring the National Forest Board to assess detailed development plans, implementation schedules, and maps identifying conservation areas and suitability for agriculture. Crucially, consent from local communities must be verified, including signed agreements from affected clans and reports of public hearings near the project site. Forest clearing should occur in phases limited to 500 hectares per block, with subsequent phases contingent on satisfactory progress in development plans. The law also empowers suspension of FCA rights if land-use development is not progressing or conditions are breached.
Despite these legal safeguards, documented abuses reveal a starkly different reality. FCAs are frequently granted for areas much larger than necessary for agricultural use, often targeting lands unsuitable for farming. Applications routinely exaggerate or falsify the scale of planned agricultural projects. Instead of focused clearing, these permits are exploited to conduct extensive selective logging, with little to no follow-through on actual agricultural development over many years.
Local communities often suffer from a lack of genuine free, prior, and informed consent, with some opposing voices forcibly suppressed, including through police intervention. These practices not only undermine community rights but also fuel deforestation, threaten biodiversity, and contribute to illegal logging—an issue compounded by the logging industry’s high-risk status for money laundering and rampant tax evasion as assessed by the Bank of PNG and the Internal Revenue Commission.
Several detailed case studies by ACT NOW!, a civil society watchdog, highlight these FCA abuses, including investigations into the Wasu Cattle Farm Project in Morobe Province, the Mengen Integrated Agriculture Project in East New Britain Province, and the Loani Bwanabwana Forest Clearance in Milne Bay Province. These reports expose how FCAs are used as a guise for logging operations rather than legitimate agricultural development.
The Forestry Act’s provisions and the regulatory framework are intended to protect forests, communities, and the environment. However, systematic FCA abuses reflect governance failures that threaten PNG’s forest resources and undermine sustainable development goals.
The PNG Forest Authority must urgently address and halt the misuse of Forest Clearing Authorities. Enforcing legal safeguards, ensuring transparency, securing genuine community consent, and holding perpetrators accountable are critical steps to safeguarding PNG’s forests and the rights of its people.
For further information and to access detailed FCA case studies, visit ACT NOW! Publications.
The future of PNG’s forests depends on putting an end to FCA abuses — the time for decisive action is now.