KUCHING: Sarawak is collaborating with the World Bank to determine a pricing formula for carbon storage and trading activities, says Tan Sri Abang Johari Openg.
The Premier said Sarawak already had a legislative framework in place for regulating carbon capture, utilisation and storage (CCUS), enabling carbon to be stored on land and offshore, such as in depleted oil wells.
However, he said the world still lacked financial structures for carbon trading, particularly in voluntary trading between two parties.
"You pollute the environment, you have to pay for your net pollution."
"And that particular carbon is absorbed and stored somewhere else, so there is a cost," he said in a special address on accelerating climate action in Sarawak here on Tuesday (Oct 7).
"For Sarawak, we are working with the World Bank to get the exact price and formula."
"If another party keeps their carbon here, we charge them," he added.
Speaking to reporters after the event, Abang Johari said Sarawak's CCUS legislation complied with international regulations under Article 6 of the Paris Agreement, which provides for international cooperation to tackle climate change.
"Our laws must be aligned with international law because this involves trading among nations."
"Sarawak was the first to have this law and the Federal Government later came up with a federal law on carbon," he said.
However, Abang Johari said Sabah and Sarawak were excluded from the federal carbon law as both states had their respective Land Codes.
Peninsular Malaysia was governed by the National Land Code.
He said this meant that land-related legislation, including forest management for carbon storage, came under Sarawak's jurisdiction.
At the same time, he said carbon trading activities must be registered with the United Nations Framework Convention on Climate Change (UNFCCC) by countries.
"Sarawak cannot trade directly (with another country), it must be done together with the national interest," he added.
