Sarawak first state to require a licence for forest carbon activities

KUCHING: Sarawak has passed amendments to its Forests Ordinance, making it the first state in Malaysia to grant licences for forest carbon activities, in line with efforts to mitigate the effects of climate change.

Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the amendments would empower the state forests director to issue licences for forest carbon activity over state land, permanent forests and alienated land that would lead to the reduction of carbon emissions.

He said licence holders would be granted legal and beneficial titles to the carbon or greenhouse gas stocks associated with the forest carbon activity and carbon credit units for emission reductions issued by a carbon standard.

"The Bill makes it mandatory for any person to obtain a licence before undertaking any forest carbon activity, otherwise an offence would have been committed with penal consequences.

"By this amendment, the state government will promote activities in our forests that will reduce the adverse impact of climate change," he said when tabling the Bill in the state legislative assembly on Thursday (May 19).

The House approved the Bill after 20 members participated in the debate.

Awang Tengah said the licensing of forest carbon activity was a strategy of removing carbon dioxide from the atmosphere through carbon sequestration and storing it within the forests.

He noted that Sarawak had six million hectares of permanent forests and one million hectares of totally protected forests.

"From these forested areas, carbon sequestration can be carried out to form carbon stocks and carbon credit units can be derived," he said.

Through forest carbon activity, he added, Sarawak was expected to have a new source of revenue estimated at RM315mil annually.

This was based on the current World Bank carbon price of US$5 (RM22) per tonne and the estimation that 30% of the permanent forests will yield carbon at the rate of 200 tonnes per hectare.

Awang Tengah said the Bill also provided for the creation of amenity forests for educational, research and recreational purposes.

He said this would enhance community participation in promoting the preservation and sustainable use of forests for studies and enjoyment by the people and visitors to the state.