KUCHING: The federal government is currently engaged in discussions to prepare legislation pertaining to carbon trading.
According to Deputy Prime Minister and Minister of Plantation and Commodity, Datuk Seri Fadillah Yusof, the discussions encompassed various matters, including the tax structure for carbon trading.
“The legislation will not be presented at the upcoming Parliamentary Sitting as discussions are still ongoing at the working level, and final details have yet to be determined.”
He shared these updates with the media during the Parti Pesaka Bumiputera Bersatu (PBB) Women Tupong Branch’s Sacrificial Rites Ceremony in conjunction with Hari Raya Aidiladha at the Darul Fadzillah Mosque, Gita Laut on Friday (June 30).
Regarding Sarawak’s proposal to place carbon trading under the Ministry of Plantation and Commodity, Fadillah revealed that ongoing discussions were taking place between his ministry and the Ministry of Natural Resources, Environment, and Climate Change, led by Nik Nazmi Nik Ahmad.
He explained that while carbon storage and carbon trading were already part of the national-level carbon market exchange under the Bursa Carbon Exchange, the current legislation and jurisdiction fell under the purview of the Ministry of Natural Resources, Environment and Climate Change.
He added that discussions were underway to separate carbon conservation from carbon trading, aligning with the United Nations Environmental, Social, and Corporate Governance’s (ESG) definition, which recognises carbon as a commodity. This would involve placing carbon trading under the Ministry of Plantation and Commodity.
However, Fadillah acknowledged that the process of transferring carbon trading under his ministry’s jurisdiction would require time, as it involved changes in legislation structure and policy.
Earlier, he mentioned that Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg had emphasised Sarawak’s focus on carbon trading. He expressed his commitment to follow through with Abang Johari’s suggestions once the matters concerning carbon are finalised.
In April this year, Abang Johari, who is also the Sarawak Minister of Finance and New Economy, stated that Sarawak was ready for carbon trading, while Malaya was not.
Sarawak became the first in Malaysia to implement carbon trading and carbon storage after amending the Land Code and Forest Ordinance last year.
