In keeping with the worldwide effort to address climate change as listed in one of the Sustainable Development Goals (SDG) by the United Nations (UN), Sarawak’s decision to embrace carbon trading is not only commendable but also a significant step towards a sustainable future.
Carbon trading represents a proactive approach that aligns economic prosperity with environmental responsibility.
The concept of sustainable income takes on a crucial role in ensuring lasting economic growth, and carbon trading offers a novel way to achieve this.
By participating in carbon trading markets, Sarawak can tap into a fresh revenue stream while simultaneously contributing to global efforts to reduce carbon emissions.
This diversification of income sources shields the state from overreliance on traditional sectors that might be susceptible to market fluctuations, creating a more resilient economic landscape.
The decision to embark on carbon trading holds the potential to transform Sarawak’s economy, setting it on a trajectory towards innovation and international recognition.
As the state prepares to engage in trading carbon credits, it enters a realm of sustainable business practices that not only benefit the environment but also foster innovation in cleaner technologies and processes.
This can garner international acclaim and position Sarawak as a leader in the global movement towards combating climate change.
Heading in the right direction
Describing Sarawak as heading toward the right direction by going for carbon trading, Sarawak Business Federation secretary-general Datuk Jonathan Chai said this not only aligns with the noble goal of environmental sustainability under Post Covid-19 Development Strategy (PCDS) 2030 but also in tandem with the global trend that has placed as significant emphasis on environmental protection.
He pointed out that the commitment and persistence of the state government in development the carbon trading market shows that Sarawak can grow its economy and protect the environment at the same time.
“As reported, the global carbon credit market traded value was USD978.56 billion in 2022 and it is expected to reach USD2.68 trillion by 2028. This is a huge market with immense potential, especially for those companies engaged in related trade like the oil exploration companies and those who owned big plantations.
“By engaging themselves with the carbon trading business, these companies are playing their part in environmental sustainability too and they will in a way play an important role in mitigating the adverse impacts of climate change.”
Chai commended the state government for giving emphasis and has formulated strategic approaches of development based on the challenges faced by the world today.
He said one of the challenges is climate change and global warming that will bring about natural catastrophes.
“This global issue can be an opportunity for the business community and carbon trading would be one such opportunity.
“With the rising expectations of the environmental protection and preservation by the overseas market like the EU and USA on their imports, it would be beneficial to our exporters that we set a high benchmark for environmental sustainability, for example zero or even negative carbon emissions.
“In the long run, it would help to develop a business ecosystem which is sensitive to the needs of environmental sustainability for Sarawak.”
Sarawak as a preferred green investment destination
Universiti Malaysia Sarawak economist Dr Jerome Kueh pointed out that the introduction of carbon trading market will put Sarawak on the globe as potential for green investment.
“Carbon trading implementation provides a significant indication to the world that Sarawak is committed to combating climate change via mitigation of carbon footprint. This will undoubtedly be able to draw green investments to Sarawak.”
Kueh said implementing carbon trading will be able to strengthen Sarawak as a preferred green investment destination.
He said this is because efforts in combating climate change have become prominent and corporations are moving towards ensuring their business operations are in accordance with such efforts.
“Engaging in carbon trading will help the state to increase its economic advantage and global competitiveness. Sarawak will be seen as a major responsible player in the fight against climate change on a worldwide scale.
“This will eventually enhance the reputation of Sarawak globally.”
On the potential contributions to the state’s economic growth and development, Kueh said the revenues from carbon trading by selling carbon credits to companies that intend to offset their carbon footprint can be utilised to finance development projects.
“Secondly, carbon trading indirectly transforms Sarawak into a green investment hub preference by the international corporations. This is due to the awareness about the importance of mitigating climate change efforts by the international corporations that will become one of the key criteria in their green investment destination selection.”
At the same time, Kueh said carbon trading will contribute more employment opportunities to the people.
He said the carbon trading ecosystem requires various job skills to ensure the effectiveness and efficiency of operations and transactions.
“With continuous green investments into Sarawak, this will create more job opportunities for the people. The job creation may range from jobs supporting the carbon trading ecosystem to managing carbon emission that require specific skills and expertise.
“This also implies that there is potential for transfer of technologies and management skills in the carbon trading industry.”
Community participation through Native Customary Rights land
Orang Ulu Chamber of Commerce and Industry president Datuk Mutang Tagal described Abang Johari’s suggestion for Native Customary Rights (NCR) landowners to flip their lands for carbon trading as well carbon capture and storage (CCS) as brilliant.
He said this would mean their lands get to be restored, preserved, and protected.
“They will still get to enjoy hunting, fishing, and collecting jungle products while carbon credits continue to accrue to their accounts from oxygen generated by the trees, crops, and vegetations on their lands. This will provide them with stable and recurring incomes continuously.”
However, Mutang said the state government must ensure that these NCR lands are surveyed and given legal title to protect the landowners.
He also said every tree per hectare must be scientifically measured to determine its capacity for generating oxygen.
“Proper and right pricing must be adopted for carbon credits that are accruing to the landowners. There must also be proper and effective policies and regulations in place with stringent monitoring by the state government to ensure landowners are not played out by unscrupulous carbon traders or global polluters and emitters.”
Mutang stressed that NCR landowners must benefit from these new sources of income from carbon trading and CCS.
“Revenue generated will be utilised to uplift the living standards of these landowners and their families whilst ensuring the sustainable maintenance of their ancestral lands.”
Proving insights to business communities in Sarawak
The Federation of Chinese Associations of Kuching, Samarahan and Serian Division president Datuk Richard Wee said there is a need to provide insights on carbon trading to the business community in the state.
“I am not too familiar with the subject of carbon trading, carbon footprint and CCS. I believe that not many in the business community are familiar with this subject either.
“As such, I welcome any organisations, business consultants, government bodies and those who have the experience and knowledge in the carbon trading industry to conduct courses, programmes and talks to share and educate the business community.”
Wee said this would enable the business community to have a better understanding of the entire ecosystem and position themselves to participate and benefit from this new sector.
“Personally, I would encourage everyone who is not familiar with this subject like me to participate in such talks and programmes if they are organised so that we can equip ourselves to reap the initiatives promoted by the state government.”
Echoing this, Chai said most are still unfamiliar with the concept of carbon trading and the business opportunities that come with it.
While it is an unfamiliar territory for most businesses, especially small-medium enterprises (SMEs), he believes that business operators would have a better understanding of the trade over time and as the market develops.
“I believe when the trade is more mature, better designed and developed, more players would participate. The business chambers and organisations would organize talks and seminars to keep their members informed so that they would not miss out the chance of taking any business opportunity as an early bird.
“We will play our part in helping our members to understand the trade so that they can benefit from such initiative to be undertaken by the government.”
Meanwhile, Dayak Chamber of Commerce and Industry supreme council member Bell Bernard Anggan agreed that carbon trading is another opportunity for the private sector to participate in the state government’s initiative in sustainable and green energy.
He said it gives opportunity to the private sector to generate revenue and at the same time conserve the environment through reduction of greenhouse gas emissions.
“Our state has a big potential to be one of the main players in the international carbon trading market. However, I believe it is equally important to educate the public on efforts to reduce their carbon footprint by going green.”
