KOTA KINABALU: Sabah will prohibit unvetted and speculative carbon trading projects to safeguard its market reputation and enforce strict regulatory discipline, Chief Minister Datuk Seri Hajiji Noor said on Thursday (Sept 23).
In a speech delivered by Deputy Chief Minister II Datuk Seri Masidi Manjun at the Sabah Carbon Market Forum, Hajiji warned that poorly designed projects, overstated climate claims, and the exclusion of native communities would damage investor confidence in the state's carbon credits.
“Buyers will demand full transparency,” he said.
To establish clear regulatory control, the state is introducing the Sabah Climate Change and Carbon Governance Enactment 2025, which legally affirms government ownership of carbon rights.
Oversight will be managed by the Sabah Climate Change Action Council alongside a specialised registry to handle project approvals and track carbon budgets.
The move builds on Sabah's flagship 83,381-hectare Kuamut Rainforest Conservation Project, Malaysia’s first nature-based verified carbon initiative, which is expected to yield 800,000 tonnes of annual carbon dioxide emission reductions.
Moving forward, the state aims to diversify its carbon portfolio across its 340,000 hectares of mangroves under the Blue Economy, methane capture within its 1.5-million-hectare oil palm sector, renewable energy expansion, and offshore carbon capture and storage.
“Sabah aims to increase the share of renewable electricity by 2030 through solar, hydropower, and biomass projects,” he said.
As Malaysia's primary net carbon sink, Sabah's extensive forests account for approximately 36% of the country's total carbon absorption, with nearly 30% of its landmass designated as Totally Protected Areas.
Hajiji called on financial institutions and investors, including CIMB Bank and Bursa Malaysia, to partner with the state in developing financing frameworks that bridge the capital gap for high-integrity conservation projects.
