KUCHING: Sarawak’s proactive measures in integrating sustainable practices and transitioning towards a green economy have positioned the state well within the global climate framework.
Ministry of Energy and Environmental Sustainability’s (MEESty) permanent secretary Abg Ahmad Abg Morni said it is crucial for the state to continue participating in international negotiations.
Highlighting Malaysia’s development of its Climate Change Act, Carbon Capture, Utilisation and Storage (CCUS) Act and carbon trading mechanisms, he said it is also important for the federal government to discuss and work together with Sarawak on these matters.
“This collaboration is vital to ensure Sarawak’s established ordinances and rules are considered with the state’s initiatives being recognised and supported. This approach will enhance the state’s environmental policies and economic strategies thus ensuring a sustainable and prosperous future,” he said.
Referring to the recent 2024 Bonn Climate Change Conference in Germany, Abg Ahmad said the meeting highlighted the complexities surrounding Article 6 of the Paris Agreement which is crucial for Sarawak’s climate strategy, adding that the article focuses on international carbon markets which remain a contentious issue.
There are two main forms of carbon trading under the UN system namely direct country-to-country trading (Article 6.2) and a centralised international carbon market (Article 6.4) while Article 6.8 covers less-defined non-market approaches.
“The negotiations at Bonn revisited unresolved issues from COP28, particularly on how carbon credits are authorised, transparency in trading, and review processes. The divide remains between countries favouring strict market rules for genuine emissions reductions and those preferring less oversight.
“A notable issue at Bonn was whether ‘emissions avoidance’ activities could generate tradable credits. By the end of the meeting, parties broadly agreed that such activities would not be eligible under Articles 6.2 or 6.4, although this decision will be reassessed in 2028,” he said.
Meanwhile, MEESty head of corporate development and economy division Dr Kho Lip Khoon said progress was made on the confidentiality of information regarding carbon trading.
He said texts forwarded to COP29 included a request for the UNFCCC secretariat to develop a specific code of conduct for Article 6 technical expert review teams to handle confidential information appropriately.
“For Sarawak, these discussions are pivotal as they impact the state’s initiatives in emission reductions and sustainable development. The unresolved status of ‘emissions avoidance’ under Articles 6.2 and 6.4 is particularly challenging.
“Sarawak’s strategies, such as avoiding deforestation, are not yet fully recognised within the current modalities and rules. Therefore, detailed negotiations and framework developments are needed to ensure Sarawak’s efforts are acknowledged and rewarded under the global climate agreement,” he said.
Kho said Sarawak must be involved in the crediting and registry under Article 6’s market mechanisms, explaining that understanding the significance of Articles 6.2 and 6.4 for compliance is crucial as it aligns with Malaysia’s Nationally Determined Contributions.
“Such alignment will provide Sarawak with significant opportunities and ensures that the state’s strategies are in line with national policies,” he said.
For the record, Sarawak is currently working together with the World Bank on the accounting principle of how to evaluate the value of the carbon the state has stored.
Although protocols for carbon trading are still being developed, there is already a baseline for calculating carbon storage and understanding its trading principles.
At the same time, Sarawak is firm in its insistence that Putrajaya must notify the state government on matters related to Sarawak’s jurisdiction over energy, CCUS, and carbon trading before making any decisions.
Sarawak is also urging the federal government to include the state government in meetings and seminars concerning projects in the state.
