KOTA KINABALU: All carbon trading activities in Sabah now require mandatory licensing, following amendments to the Forest Enactment 1968 to regulate such activities.
Anyone carrying out such activities without a licence may face a fine of up to RM5mil and five years jail as stipulated in the amended law passed by the state legislative assembly on Thursday (April 17).
“Now is the most appropriate time for us to introduce specific legislation to regulate forest carbon credit trading activities in order to safeguard the state’s interest and the sustainability of our forest resources,” said Assistant Minister to the Chief Minister Datuk Abidin Madingkir when tabling the bill.
The amendment on Part IIIB of the Forest Carbon Activity outlines that only those with written approval from the Sabah Cabinet can receive a licence, which will come with certain conditions and fees.
Application would go through the Sabah Forestry Department’s Chief Conservator of Forest prior to submission for approval by the Sabah Cabinet.
“If the activity is on private (alienated) land, only the landowner or someone authorised by them can apply for a licence and that the licence can be cancelled or suspended if rules are broken.
“Also before any study is carried out to see if carbon trading is possible on the land, written approval must be obtained from the Minister, and that anyone carrying out carbon projects without a licence can be fined between RM100,000 and RM5mil jailed for up to five years, or both,” Madingkir said.
Apart from that, offenders can also be ordered to pay up to 10 times the amount of fees or royalties owed, or up to 10 times the value of any forest produce involved, or any other charges due.
The government will treat these payments like fines.
These amendments included definitions of various terms used for carbon trading including the “carbon credit” to mean a trade able instrument for domestic and international that is issued by a government or an independent certification body in the form of permit, licence or certificate that results from forest carbon activity.
It also defines “carbon credit unit” to mean a unit of account representing one tonne of emission reductions issued by a carbon standard pursuant to the applicable carbon standard rules and held in a carbon registry electronic database system or any other system that is established and operated by a carbon standard.
