Kota Kinabalu: Sabah could generate billions of ringgit by converting its vast biomass waste into value-added biochar products for export, particularly to China, according to Chairman of the China Green Finance Committee, Dr Ma Jun.
Speaking at the Sabah Asia-Pacific Impact Investing for Sustainable Development Summit 2026 held at The Magellan Sutera Harbour Resort on July 13, Dr Ma said Sabah should capitalise on its abundant agricultural and forestry waste instead of relying mainly on carbon credits and ecotourism revenue.
He suggested the Sabah Government consider raising funds through green bond issuances in China’s financial market to finance equipment needed for the industrial production of biochar and other high-value biomass products.
Although Sabah is recognised as Malaysia’s largest net carbon sink and a carbon-negative state because of its extensive protected forests, Dr Ma said the State has yet to fully realise the economic value of its natural resources.
Instead of depending on the uncertain carbon credit market, he said Sabah could embrace the circular economy by converting agricultural and timber waste into biochar, a product in growing global demand for industrial decarbonisation.
“Sabah has abundant forestry biomass waste, including leaves and tree trunks, that can be converted into biochar, fertiliser and other value-added products. These can be used to decarbonise coal-fired power plants and the steel industry,” he said.
“These technologies already exist and the equipment is being manufactured in China. I am here to encourage Sabah to adopt these technologies to enhance the value of its forestry waste and export these products to generate revenue.
“You can also tap into China’s financial market by issuing green bonds. Pakistan recently issued a Green Panda Bond in China with a coupon rate of 2.5 per cent, and this is something the Sabah Government could consider.”
Dr Ma explained that biomass is a renewable and carbon-neutral source of carbon that can serve as a sustainable alternative to coal, helping reduce carbon dioxide emissions.
Biochar, produced by carbonising biomass or carbon-containing waste, has higher calorific value and improved combustion characteristics while containing lower levels of ash, sulphur and nitrogen. These properties make it suitable as a substitute for fossil fuels in steelmaking and power generation.
Dr Ma presented a paper titled “How China Green Finance Can Help in Achieving the Sustainable Development Goals (SDGs)” during the summit.
He is also Chairman of the Hong Kong Green Finance Association and former Chief Economist of the People’s Bank of China.
During his presentation, he announced plans to launch a Green Accelerator in Hong Kong in September 2026 to help develop more bankable green projects by providing early-stage financing before attracting larger institutional investors.
Dr Ma played a leading role in developing China’s green finance policy guidelines and taxonomy between 2014 and 2016, helping establish the framework that has made China the world’s largest green finance market.
He said China now has about RMB48 trillion (approximately US$7 trillion) in outstanding green loans and around RMB2.3 trillion in outstanding green bonds, in addition to more than 1,000 green equity funds.
The country facilitates about one million green loan transactions and some 700 green bond issuances annually.
Dr Ma attributed China’s success to a four-pillar green finance ecosystem comprising a single national green taxonomy, mandatory environmental disclosure, a comprehensive range of green financial products and government incentives, including subsidised financing.
China’s central bank, the People’s Bank of China, also provides a decarbonisation lending facility at an interest rate of just 1.25 per cent to commercial banks financing eligible green projects.
He said emerging markets often face a shortage of bankable green projects and identified three ways to improve investment readiness: adopting affordable green technologies, using blended finance and investing in early-stage project preparation.
Dr Ma also highlighted China’s green taxonomy, introduced in 2015, which established a single national definition of “green” to prevent greenwashing and standardise certification.
Banks and issuers of green financial products are required to report environmental performance indicators, including reductions in carbon emissions, air and water pollution, and energy consumption.
He said Asean countries such as Malaysia and Indonesia possess abundant forestry biomass that could be transformed into high-value products, including biochar fertiliser, substitutes for coking coal used in steelmaking and materials for decarbonising power plants.
“These are opportunities that can create new industries, generate export income and strengthen sustainable economic growth for states like Sabah,” he said.
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