KUCHING: A federal law on the transboundary transport of carbon needs to be put in place before Sarawak can begin carbon trading, says Tan Sri Abang Johari Tun Openg.
The Premier said Sarawak already had proposals for carbon trading as well as state laws covering carbon capture, utilisation and storage (CCUS).
"There must also be legislation on transboundary transport of carbon and for this we depend on the Federal Government.
"For example, we have laws on transboundary transport for commodities like timber that we export to other countries.
"Carbon trading is something new, so we need a law on transporting it, say to Singapore," he said.
Abang Johari said this to reporters after witnessing the exchange of memoranda of understanding (MOU) between the Sarawak Forestry Corporation (SFC) and PETRONAS, Sarawak Economic Development Corporation (SEDC) and ESG Malaysia here on Monday (Aug 19).
He added that Sarawak would begin carbon trading once the relevant legislation is passed by Parliament.
"We will do things according to the law," he said.
Abang Johari also said Sarawak was working with the World Bank to determine its carbon pricing.
"We want a value that can be accepted by the host country and buyer country. This is something we are working out with input from the World Bank," he said.
In his speech earlier, Abang Johari commended SFC and its MOU partners for their commitment to environmental conservation and addressing climate change.
"The three MOUs are about nature-based solutions, renewable energy and biodiversity conservation. They are all related," he said.
SFC and PETRONAS exchanged an MOU to explore and develop nature-based solutions projects in Sarawak that will reduce greenhouse gas emissions and provide co-benefits to local communities and biodiversity.
SFC's MOU with SEDC will explore renewable energy initiatives such as battery-powered boats and solar panels at the state's national parks.
SFC will also collaborate with ESG Malaysia on ESG (environmental, social and governance) activities and biodiversity conservation.
