BY NURFARAHIN OKI
A FIVE percent Forest Ecosystem Fee (FEF) will be imposed on carbon traded in Sarawak.
Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the FEF rate is competitive and affordable to encourage the participation of forest carbon project developers in Sarawak.
“The government also levies an annual land tax for carbon trading based on the area of the licensed area.
“If these fee and tax rates are not equivalent to the rates used internationally, the existing legislation allows revisions to be made on the rates in question,” he said when delivering his ministerial winding-up speech today.
Awang Tengah, who is Second Minister for Natural Resources and Urban Development, said the forest carbon initiative will promote sustainable forest management practices and reduce the effects of climate change.
“This initiative will also enhance economic prosperity, social inclusion and environmental sustainability in line with the Sarawak government’s strategy through Post-Covid-19 Development Strategy (PCDS) 2030,” he added.
He noted that since the formulation of the Forests (Forest Carbon Activity) Rules in 2022, a total of 13 forest carbon research permit applications have been received.
“Of these 13 applications, one forest carbon licence is in the final production process while two forest carbon research permits have been issued.
“A total of seven applications are still in the evaluation process and three applications have been rejected,” he added.
