BINTULU: The Sarawak government will look into providing suitable incentives to those involved in Carbon Capture, Utilisation, and Storage (CCUS) in the state.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Sarawak already has the necessary laws on carbon trading in place.
“We already have the laws. But at the federal level, there are no laws (on carbon trading).
“As you know, carbon storage, we must capture carbon and bring carbon to Sarawak, this is where we need a regulation on transboundary.
“The carriage of carbon from the source to Sarawak. That is something that has not been decided,” he said.
He said in response to a question on what are the incentives or policies of the state government given to the businesses and corporations interested to set up research or business models that focus on low-carbon technologies during the Sarawak Chamber of Commerce and Industry’s Renewable Energy Development: A Business Dialogue with Premier of Sarawak at Dinner World Restaurant here today (July 22).
Abang Johari, who is also the Finance and New Economy Minister, noted that the federal government has agreed to enact a carbon trading law and is expected to be introduced in November.
“I met with the Minister of Economy recently, and I told him that we need that transboundary law because it is under trading and it is the purview of the federal government.
“Just wait until November. Then we can more or less try to find out what is the best incentive that we can give to the people involved in CCUS,” he said.
He added Sarawak might implement a levy on carbon storage within its land, providing a revenue stream for the state.
“Since the storage is under our Sarawak Land Code, it will be stored in Sarawak land. Perhaps, we are thinking of certain income from that for Sarawak coffers. Not high. If it is high, people will run.
“It will be reasonable, and that will give a certain amount to Sarawak coffers. Because they store (carbon) in our land. There is no free storage. You go to the warehouse, you are charged. So this one, if it (carbon) goes to us, we will charge a little,” he said.
Regarding the possibility of opening the carbon trade market to individual and corporate landowners, Abang Johari explained that for carbon sink, the Sarawak Land and Survey Department would issue licences for carbon trading based on the capacity to absorb carbon and the type of trees.
“Mangrove forests have a higher capacity for carbon storage compared to ordinary forests, making them more valuable in the carbon trade market,” said Abang Johari.
