SABAH has the potential to transform degraded land into profitable conservation projects by combining carbon finance, sustainable agriculture and timber production while restoring forests and creating long-term economic opportunities for local communities.
Enggang Holdings Acting Chief Executive Officer Robin Lee said the integrated model could generate multiple revenue streams from a single degraded landscape, making conservation financially sustainable and attractive to private investors.
Speaking during the Forestry and Nature-positive Food Economy session at the Sabah Asia Pacific Impact Investing for Sustainable Development Summit 2026, Lee said the idea emerged after the company realised its carbon, conservation and agriculture initiatives were addressing the same challenge separately.
“What we’re trying to do is restore one degraded landscape, create three revenue streams, make conservation financially sustainable and, importantly, enrich the lives of the community,” he said.
“There is no point fixing the landscape if we leave the community behind.”
Lee said the model restores degraded land into forest, with half retained as permanent forest and the remainder managed as production forest for sustainable timber.
As timber takes years to mature, the project integrates Centropic Agriculture, using short- and medium-term crops to generate early income while forests recover.
The agricultural produce helps offset operating costs and complements revenue from carbon credits and future timber production.
Lee said carbon finance is another key pillar, providing investors with confidence that projects deliver measurable environmental benefits through internationally recognised carbon credit standards.
He added that removal carbon credits generated through reforestation command higher prices than avoidance credits, further strengthening the project’s financial viability.
“This is something that is extremely viable in Sabah. You just need to find one piece of degraded landscape to start, then deploy and scale,” he said.
The model also broadens financing options, from philanthropic funding in the early stages to patient capital and commercial private investment as projects mature.
Lee said financial modelling indicates the projects could generate a cash-to-cash internal rate of return exceeding 20 per cent, with cash flows beginning within 18 months.
Beyond restoring forests, the initiative aims to create better-paying rural jobs, improve food security, produce premium organic crops and encourage more Malaysians to remain in rural communities.
He said the long-term goal is to prove that environmental conservation, economic development and community well-being can advance together.
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