KOTA KINABALU: Sabah is looking at existing laws to make sure it does not lose out in the country’s first carbon credits auction next month.
State Finance Minister Datuk Seri Masidi Manjun said he is sure the relevant authorities are aware of this matter and are already geared up to evaluate laws or regulations about carbon credit.
“If I’m not mistaken, work is underway in either making amendments or strengthening existing laws on carbon trading,” he said to reporters on Monday (May 20).
This is for Sabah to continue to have control over forest resources related to carbon credits, he said.
Masidi however feels that it will take the state some time to evaluate the actual tangible benefits of carbon credit as this industry is relatively new not only in Sabah but all over the world.
He said this when asked whether Sabah would emulate Sarawak in enacting laws related to carbon trading.
He had earlier witnessed the signing of the Sales and Purchase Agreement (SPA) Extension between Sabah-owned SMJ Energy Sdn Bhd (SMJE) and Shell International Eastern Trading Company at the Sabah International Convention Centre here.
On May 13, media outlets reported that Bursa Carbon Exchange (BCX) will host an auction of its first Malaysian carbon credits from the Kuamut rainforest conservation project in Sabah on June 25.
This initiative would see the Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah, and Permian Malaysia as the project lead working together.
Non-governmental organisations such as Sabah’s PACOS Trust and the Southeast Asia Rainforest Research Partnership will be backing the project.
Sarawak passed the Environment (Reduction of Greenhouse Gas Emission) Bill, 2023 in November last year, to promote carbon capture and storage and mitigate the effects of climate change among others.
It also hopes to provide opportunities for Sarawakians to be part of global warming mitigation projects and earn carbon credits for their efforts.
