Webinar presented to the BBOP Community of Practice by Dr. Amrei von Hase on 6 September, 2018. Abstract: Increasingly, national and regional governments, companies and financial institutions are committing to goals aimed at achieving no net loss or a net gain of forest, biodiversity or other natural targets. Yet, this is not always based on a clear understanding whether and how it may be feasible to deliver on such commitments. To inform its ambition of introducing a Net Gain Policy, the Sabah government (through the Sabah Forestry Department) commissioned preparatory work, including policy, legal, capacity and data gap analyses and a ‘loss-gain analysis’. This technical analysis, conducted by Forest Trends with independent partners, set out a number of possible reference scenarios for a state-wide policy. A dynamic scenario was chosen to estimate potential land cover and land use changes in the landscape over a twenty-year timeframe. These changes included likely losses that would require offsets, losses that would be exempt from a policy, offset gains and changes due to the natural forest trajectory. The analysis was underpinned by a range of explicit assumptions and rules and explored the feasibility and implications of a Net Gain or similar policy for Sabah. We do not know of many such loss-gain analyses, including an explicit reference scenario, that have been conducted to guide policy formulation. This presentation will give insight into the process and outcomes of the process to date, and will discuss advantages, limitations and challenges that may be instructive in other contexts.