KUCHING: Sarawak Premier Tan Sri Abang Johari Tun Openg said the state will begin carbon trading after the federal government finalises the cross-border delivery legislation.
He stated that the matter will first be presented in Parliament in November, and in the meantime, Sarawak is collaborating with the World Bank to determine carbon sale prices according to the London Protocol.
“We already have a proposal; this is Carbon Capture, Utilisation and Storage (CCUS).
“We must have legislation on how to convey carbon delivery, depending on Kuala Lumpur. We call it transboundary transport of carbon under federal jurisdiction,” Abang Johari said following a memorandum of understanding (MoU) signing ceremony between the Sarawak Forestry Corporation, Petroliam Nasional Bhd, the Sarawak Economic Development Corporation, and the Environment, Social and Governance Association of Malaysia, here today.
The MoU is to explore and develop nature-based solutions, renewable energy solutions, and biodiversity conservation projects in Sarawak.
The premier also said that although the legislation has not yet been finalised, there is no issue for Sarawak to issue carbon trading licences, as this falls under the state government’s jurisdiction.
“There is no problem; this is our jurisdiction. Our legislation is already in place; we just need to figure out how to transport carbon. For example, how to transport it to Singapore, which requires national government-to-national government coordination, and this can be resolved.
“Once Parliament approves it, only then can we trade. Sarawak is very compliant with the laws,” he said.
In August 2023, Abang Johari reportedly said that two licences for carbon trading had been issued in Sarawak involving the state-owned oil and gas company Petroleum Sarawak Bhd (Petros) and timber firm Samling Group.
He said Petros received the licence for carbon storage in former oil field areas, while Samling’s licence is for carbon projects in its plantation areas.
