The University of Papua New Guinea report, which used satellite images to show the loss in forest cover between 1972 and 2002, found that at current rates, 53 percent of forest was at risk of being destroyed by 2021.

The study, conducted in conjunction with the Australian National University, found that even in so-called conservation areas, trees were being logged or cut down by local subsistence farmers unabated.

"The unfortunate reality is that forests in Papua New Guinea are being logged repeatedly and wastefully with little regard for the environmental consequences and with at least the passive complicity of government authorities," the report's lead author Phil Shearman said in a statement.

Papua New Guinea has the world's third largest tropical forest but it was being cleared or degraded at a rate of 362,000 hectares (895,000 acres) a year in 2001, the report said.

Shearman said it was internationally recognised that tropical forests were "sink holes of jaw-droppingly large amounts of carbon".

"So the destruction of forest... releases that carbon into the atmosphere," he told AFP, adding raising carbon levels in the atmosphere had an impact on global warming.

"Papua New Guinea's forests are... of national and regional significance because of their carbon storage factors, they are critically important for the regional stability of our climate," he said.

"And they also hold probably somewhere between six and 10 percent of the world's biodiversity."

The report calls for a dramatic drop in logging -- or the consequences could be significant, Shearman said.

"If these trends are allowed to continue for the next 10 or 15 years it will result in significant major proportions of Papua New Guinea's forest being cleared or logged," he said.

Forests Minister Belden Namah said the government was already taking steps to review its policies towards the country's greatest natural resource.

"There's a need for rapid action to replace trees that have been cut," he said.

"And I believe for every tree that has been cut, we should plant three more new trees. That is one major policy I am looking at."

Namah acknowledged that commercial logging contributed 176 million US dollars to the national purse each year.

"But at the same time we understand that there needs to be control as to the logging activities in the country, there's a call for sustainable forest management," he told reporters via a telephone link.

The report said Papua New Guinea was still one of the most heavily forested countries in the world and it was not too late to act.

"For the first time, we have evidence of what's happening in the PNG forests," Shearman said.

"The government could make a significant contribution to global efforts to combat climate change. It is in its own interest to do so, as this nation is particularly susceptible to negative effects due to loss of the forest cover."

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