The Philippine bamboo industry has an "enormous" potential for bigger and higher-value exports to the global market, according to the Asian Development Bank (ADB).

"The Philippines' major bamboo species, Dendrocalamus asper, is known as the giant bamboo because of its massive culms and towering heights. Compared with other bamboo species, which are superior in carbon capture and sequestration over many tree species, D. asper has a more robust carbon-fighting capability," the ADB noted in a report.

As such, the Manila-based multilateral lender cited that the local variety is "highly suitable for engineered bamboo products, bamboo-based paper, textiles, and biofuels."

"Realizing the potential of bamboo as a nature-based solution, government officials have proposed legislation to strengthen the Philippine Bamboo Industry Development Council, update the government’s bamboo industry development strategy, incentivize the establishment of financing facilities for bamboo forests and enterprises, and support bamboo entrepreneurs in developing high-value bamboo exports," the ADB said.

While the Philippines is already the world's sixth-largest bamboo exporter, the ADB pointed out the majority of its products sold abroad consisted of merely low-value, unprocessed poles.

"In 2021, investments in the local bamboo industry were estimated at only $1.6 million, with domestic sales of $2.56 million, supporting 10,898 jobs and 5,012 micro, small, and medium-sized enterprises. However, the potential is enormous," the lender said.

"The Philippines can aspire to a greater share of the global bamboo market, which was estimated at $71.6 billion in 2023 and is expected to grow to $92.62 billion by 2027. With the country's huge residential and commercial construction requirements, engineered bamboo can be a tremendous source of sustainable material," it added.

The ADB urged addressing constraints to Philippine bamboo industry growth, including the exclusion as a construction material under the national building code.

Also, "the industry continues to be constrained by uncoordinated programs, limited financing facilities, and outdated technologies," the ADB lamented.

In this regard, the ADB has extended a $570,000 technical assistance special fund to the Philippines and Nepal so these two countries can harness bamboo for climate action as well as green growth.

Like the Philippines, the ADB noted that Nepal's bamboo industry is also "underdeveloped" and small at present, but shows "significant growth potential."

"With more than 80 species of bamboo and about 63,000 hectares of bamboo forest, primarily in the Terai and hilly regions, [Nepal] can substantially expand its bamboo industry. However, in 2020, the export value of bamboo products was estimated at only $587,882," the ADB pointed out.

To unlock bamboo's potential as a nature-based solution, the ADB urged these two developing member-countries to broaden awareness of its commercial potential; deepen appreciation of its ecological and environmental value; establish financing facilities supportive of enterprise development; incentivize adoption of new processing.technologies; and strengthen their bamboo development policy regimes.

Through its technical assistance, the ADB aims to demonstrate bamboo's investment potential as a high-value product for sustainable construction and manufacturing as well as carbon markets; support national strategic plans for its supply chain and industries; as well as deliver bamboo capacity-building and knowledge activities for public institutions and private industry players in both the Philippines and Nepal by 2027.