KOTA KINABALU: Sabah’s controversial Nature Conservation Agreement (NCA) is on hold as the government is still ironing out various clauses, including those deemed to be “lopsided”.
The Sabah government said in a letter to a United Nations working group that since its endorsement in 2021, the NCA has yet to come into full effect.
“The Sabah government would like to inform the United Nations Human Rights Special Procedures that the NCA has been under review in order to refine various clauses and to remove erroneous clauses that have been deemed ‘lopsided’.
“This is anticipated to help resolve some of the issues raised with the implementation of the NCA and the subsequent concerns that had been articulated by civil society and government agencies alike,” read the letter conveyed by Malaysia’s Ambassador and Permanent Representative to the UN in Geneva, Datuk Nadzirah Osman.
It said that the state Attorney General’s Chambers had been firm and consistent in holding back the full implementation of the NCA pending the resolution of several queries and necessary amendments.On Dec 20 last year, the UN working group, consisting of four rapporteurs on human rights, wrote to Malaysia, asking for clarification on several issues in the NCA, including proof of due diligence.They raised concerns over what appeared to be a lack of transparency on the terms of the contract and the overall effect it will have on local communities and land covered by the NCA, among other issues.The controversial 100-year deal was signed with Singapore-based Hoch Standard Pte Ltd (HSPL) in October 2021 for the sale of carbon credits from two million hectares of state forests.
The Sabah government said there was no malintent in entering a commercial agreement with a foreign company to act in a repressive manner to diminish the rights of Sabahans.
It explained that the NCA is in the interest of the Sabah government and mandated by its people to develop the state appropriately.
“As was clearly stated in the Joint Communication, the NCA underwritten by HSPL was to commercialise the carbon and natural benefits within a defined or designated area.
“The project proponent has to show the viability of the project and prove its economic potential while adopting a recognised standard, such as the Verified Carbon Standard or otherwise, in order to trade carbon credits.” The UN working group was also told that the agreement requires the proponent to commercialise “potential” carbon credits, failing which the Sabah government has the right and obligation to terminate the agreement.
As to the natural capital and ecosystem benefits underwritten in the agreement, it said Sabah currently has no laws governing elements of natural capital.
The Sabah government said such laws have to be developed in a way that does not impinge on the basic rights of the people of Sabah to access such resources.
