KUALA LUMPUR: Citaglobal Bhd
is expanding its environmental portfolio into the blue carbon sector through a strategic collaboration aimed at assessing and developing mangrove carbon projects in Pahang and Lampung, Indonesia.
Its subsidiary, Citaglobal Environment Management Sdn Bhd, formalised the initiative by signing a Memorandum of Business Exploration with Kitaran Tabah Sdn Bhd on Nov 4, 2026, targeting coastal sites in Pahang and Lampung.
The expansion builds on Citaglobal’s existing infrastructure platform, which includes waste-to-energy capabilities via Germany’s LAWI Engineering GmbH and a bio-compressed natural gas development partnership with Keppel.
By entering the blue carbon market, the group aims to capitalise on verified climate outcomes generated through the conservation of threatened mangroves and the restoration of degraded coastal zones.
Revenue generated from resulting carbon credits is expected to fund ongoing local conservation efforts while supporting the livelihoods of surrounding coastal communities.
Under the terms of the agreement, Citaglobal Environment Management will manage site selection, secure land access, lead community and governmental engagement, and navigate regulatory permit processes.
Kitaran Tabah will oversee the technical carbon development cycle, managing feasibility studies, methodology selection, project design, and carbon monitoring. It will also coordinate with independent verifiers, international carbon standards, and potential credit buyers, leveraging its affiliation with regional project developer Tabah Asia Sdn Bhd.
Initial feasibility work under the memorandum will evaluate land tenure, carbon rights, local counterparties, and ecological suitability across prospective mangrove sites. Additionally, the collaborating parties plan to conduct a separate evaluation to assess the carbon credit potential of a bio-compressed natural gas asset.
"Blue carbon calls for disciplines our environment business already practises: choosing the right sites,
earning the trust of communities and authorities, and being clear about rights before committing capital.
"Kitaran Tabah brings the carbon expertise and market relationships to turn suitable mangrove areas into credible projects. We will be selective, taking forward only projects where carbon rights are
clear and the commercial case is sound," said Citaglobal Environment Management CEO Thye Chee How in a statement.
