Sarawak aims to begin carbon trading next year

KUCHING: Sarawak aims to begin carbon trading next year, which will be a new source of income for Bintulu and increase the state’s revenue.
 
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said carbon is currently under the Ministry of Natural Resources, Environment, and Climate Change in Malaysia.
 
However, according to the United Nations definition that carbon is a commodity, Malaysia ought to follow suit and group carbon under the Plantation and Commodities Ministry instead.
 
“We need the parameters and legislation for carbon trading to be put in place at the federal level first.
 
“But if Putrajaya takes too long to do it (to update Malaysia’s legislation in accordance with international protocol and place carbon as a trade commodity), we will visit London’s Verra to learn more about the international protocol.
 
“Otherwise, it will hinder our production and trading of carbon,” he said at the BDA’s 45th anniversary celebration dinner in Bintulu last night (July 14).
 
Verra is a standard-setting body, providing the world’s leading standards for climate action and sustainable development.
 
Abang Johari, who is also the BDA chairman, said he had requested Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Plantation and Commodities Minister, to bring the matter up in the federal Cabinet.
 
He is confident that carbon trading can be a potential source of income for Bintulu, apart from hydrogen and sustainable aviation fuel (SAF).
 
“As Sarawak is moving into a green economy, we want Bintulu to be part of it,” he added.
 
It was previously reported that carbon credits would provide Sarawak with a new source of revenue of RM315 million to RM1.039 billion annually.
 
Sarawak also has the advantage of forest cover and depleted oil and gas fields offshore, which can serve as carbon sinks and potential carbon storage areas.
 
Thus, the state government had already amended the Land Code and Forests Ordinance to enable Sarawak to venture into carbon trading and storage.