KUCHING: Asean should come up with its own emissions trading system (ETS) to provide a higher value for carbon credits in the region, says state Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni.
He added that the region currently lacks such a system, unlike other parts of the world such as Europe, the United States, Canada, China and South Korea.
“Since Malaysia is the Asean Chair this year, the Sarawak government has proposed to the Prime Minister that Asean should have its own ETS.
“The ETS will raise the value of our carbon credits. It means we can participate in a compliance carbon credit market, which fetches a higher price of between US$100 and US$120 per tonne,” he said in a plenary session at the Asean Sarawak Business and Economic Forum here yesterday.
Without the ETS in place, Dr Hazland said Asean countries could only participate in the voluntary carbon market, which has a lower price of US$8-30 (RM36-133) per tonne, depending on the buyer.
According to the United Nations Development Programme, compliance carbon markets are created through national, regional or international policy or regulatory requirements, while voluntary carbon markets refer to the issuing, buying and selling of carbon credits on a voluntary basis.
Emissions trading systems are one example of a compliance market.
In addition, Dr Hazland said the ETS would provide a reference system for pricing carbon taxes and carbon storage fees.
“How much we are going to tax the industries in our countries will be based on the carbon pricing (determined by the ETS).
“It will also give us a reference on how to charge for carbon storage,” he said.
Dr Hazland said the Sarawak government is preparing new frameworks for the state to embark on the green economy.
The legal framework, he said, is already in place through the amendment of the state Land Code and Forests Ordinance and introduction of relevant legislation like the Environment (Reduction of Greenhouse Gases Emission) Ordinance.
“The second framework we have to prepare is the technical framework for us to partner with technical experts.
“The third framework is finance, taxation and business, and the last is human resource and talent development framework.”
