THE Sarawak government has issued a permit to Saracarbon, to become the first local company to receive a Carbon Study Permit.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said that with the Carbon Study Permit, it allows the company to conduct an assessment study to identify suitable areas for carrying out carbon activities in the state.
“Carbon trading is a win-win solution for Sarawak. It provides an opportunity for companies to generate income while also contributing to environmental conservation,” he the Finance and New Economy Minister when delivering his ministerial winding-up speech at the DUN yesterday (May 24).
Abang Johari said with extensive forest cover, Sarawak has great potential to become a significant player in the international carbon market.
“Sarawak has made another significant milestone where we have opened the doors for the private sector to actively participate in the carbon trading initiative.
“It is a significant global effort to address climate change,” he said.
Carbon trading in Sarawak is now possible following the passing of the Forest Ordinance in May last year and the Forests (Forest Carbon Activity) Rules 2022, which took effect on January 1 this year.
On a related note, he said Sarawak has a world-scale potential for carbon dioxide (CO2) storage, estimated at around nine billion tons.
“In the near term, unlocking the stranded sour gas resources is a key objective. Petroleum Sarawak Berhad (PETROS) is leading the Carbon Capture and Storage (CCS) agenda to unlock the potential long-term value for the region.
“The implementation of CCS in Sarawak is expected to ensure long term energy sustainability and security. CCS will attract foreign direct investment and promote the growth of blue and green hydrogen and its derivative industries in the region,” he said.
Sarawak, he said through PETROS is developing a comprehensive CCS Roadmap outlining the strategies and actions necessary to realise the full potential of the CCS value chain in Sarawak.
“According to the World Bank, there are currently 73 global carbon pricing instruments in operation, compared with 68 when the World Bank issued its 2022 report last May, covering around 23 percent of global greenhouse gas emissions. The figure raised in 2022 in carbon revenues was up from around US$84 billion in 2021.
“In 2017, a report by the High-Level Commission on Carbon Prices indicated carbon prices need to be in the USD50 to 100 per ton range by 2030 to keep the rise in global temperatures below 2 degrees Celsius, the upper end of the limit agreed upon in the 2015 Paris agreement,” said Abang Johari.
