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The Sun
3 hours ago
- Business
- The Sun
Sabah Carbon Governance Enactment boosts investment opportunities
KOTA KINABALU: The passing of the Climate Change and Carbon Governance Enactment 2025 at the Sabah State Assembly sitting on July 8 has opened up opportunities for Sabah to attract investors in the carbon market, said Chief Minister Datuk Seri Hajiji Noor. He said the enactment has led to the establishment of the Sabah Climate Action Council, a Climate Fund, a state-level emissions inventory, and a framework for benefit-sharing, particularly with indigenous communities, while legally affirming carbon rights as belonging to the state government. 'This legal foundation gives investors the certainty they need. But the bigger opportunity lies in ASEAN cooperation. To grow this space, we need a functioning regional carbon market with common standards, regulatory alignment, and mutual recognition of credits across borders. 'Sabah is ready to work with other ASEAN countries to push this agenda forward,' he said in a speech read by Sabah Finance Minister Datuk Seri Masidi Manjun at the ASEAN Sustainable Forestry Summit 2025 here today. Hajiji highlighted that Sabah is now a net sink jurisdiction -- absorbing more carbon than it emits --contributing approximately 36 per cent of Malaysia's total carbon sequestration, which he described as 'a strategic economic asset' in a carbon-constrained world. Sabah introduced the Forest Plantation Development Action Plan in 2022, a 15-year blueprint to rehabilitate 400,000 hectares of degraded forest, which is projected to contribute more than RM11 billion to Sabah's gross domestic product (GDP) and create 40,000 jobs across the value chain once fully realised. The Chief Minister also noted that timber remains a strategic sector for Sabah, with timber royalties rising to RM171 million in 2024, marking an increase of RM16 million from the previous year, while export volumes have grown steadily, especially to Japan, the United States and Taiwan. As the largest producer of crude palm oil (CPO) in Malaysia, accounting for over 25 per cent of the national output, he said Sabah is advancing its leadership in the palm oil industry by attracting investments in downstream processing, biofuels, and palm-based innovation. 'Forestry and climate are now at the core of economic strategy for Sabah, for Malaysia and ASEAN. We are no longer treating sustainability as optional. It is part of how we create jobs, attract investment, and strengthen resilience,' said Hajiji. The ASEAN Sustainable Forestry Summit, jointly organised by the KSI Strategic Institute for Asia Pacific and the ASEAN Economic Club, brings together policymakers, business leaders and environmental experts from across Southeast Asia to address the urgent need for sustainable forestry and climate resilience. - Bernama
Daily Express
08-07-2025
- Business
- Daily Express
Safeguarding carbon sink status: State Assembly passes the Climate Change and Carbon Governance Enactment 2025
Published on: Wednesday, July 09, 2025 Published on: Wed, Jul 09, 2025 By: Larry Ralon Text Size: 'Governments and industries around the world are investing billions to shift towards greener economies. Sabah already has this natural advantage. The challenge now is how to use it wisely – and not lose it,' Abidin said. Kota Kinabalu: The State Legislative Assembly on Tuesday passed the Climate Change and Carbon Governance Enactment 2025, positioning the State as a leader in environmental stewardship and climate resilience in Malaysia. Assistant Minister to the Chief Minister Datuk Abidin Madingkir said the Bill was a crucial step to protect and leverage Sabah's rare status as a net carbon sink – one of the few jurisdictions in the world to absorb more carbon than it emits. 'In 2024, Sabah conducted its first comprehensive Greenhouse Gas (GHG) Inventory. Although there are still data gaps to refine, the findings are striking – we absorb more carbon than we release,' he said when tabling the Bill, Tuesday. Abidin revealed that Sabah alone contributes approximately 36 per cent of Malaysia's total carbon sequestration. 'This means Sabah has already gone beyond what the world is asking for under the Paris Agreement. We have already done our part – today – for Malaysia's 2050 net zero commitment,' he added. Describing the net sink status as a 'strategic economic asset', Abidin stressed the importance of safeguarding it through sound policy and governance. 'Governments and industries around the world are investing billions to shift towards greener economies. Sabah already has this natural advantage. The challenge now is how to use it wisely – and not lose it,' he said. He warned that failure to act responsibly could cause the State to forfeit its environmental edge and fall into the same carbon-intensive trap as many others. At the same time, Abidin said Sabah faces increasing threats as one of the most climate-vulnerable regions in Malaysia. 'We are seeing the effects through worsening floods, coastal erosion and the changing livelihoods of our rural communities. These dual realities demand both vision and urgency,' he said. The Bill aims to develop comprehensive systems for carbon governance, resilience-building and inclusive climate action – with the ultimate goal of ensuring that benefits reach all Sabahans. 'We want this unique position to not only serve global climate progress, but to improve the daily lives of our people,' he said. He emphasised that achieving this would require 'capacity, investment and partnership', with active collaboration across local, national and international stakeholders, including the Federal Government. 'Our approach will be constructive, inclusive and grounded in what makes Sabah truly exceptional,' said Abidin. Abidin said the State had already taken early steps by establishing the Sabah Climate Action Council (SCAC) as the State's advisory body on climate policy. The newly passed Bill formalises and strengthens this role through a two-tier governance structure – with SCAC as the policy authority and a Director overseeing implementation and regulation of carbon activities and GHG emissions. The Enactment also asserts that all carbon rights within Sabah belong to the State Government, positioning SCAC as the central one-stop agency for all carbon-related matters. Abidin said this institutional framework adopts a top-down approach to ensure climate governance is mainstreamed into the entire State administration, including ministries and departments, while also aligning policies across all economic sectors to strengthen institutional capacity and long-term resilience. He said the Enactment reflects Sabah's determination to build its own robust and transparent climate governance system, aligned with national and international developments. Carbon assets will be used through regulated carbon projects, supported by a strong carbon accounting mechanism to steer the State's development goals. This strategy will promote economic growth – including emission balancing efforts – while protecting the competitiveness of key economic sectors, especially in job creation and support for vulnerable communities. Abidin said environmental matters are not explicitly listed under the Ninth Schedule of the Federal Constitution and, under Article 77, fall under State jurisdiction. Furthermore, issues concerning land, forests and water are on the State List (List II), giving Sabah clear justification to enact its own climate and carbon governance laws. By asserting full ownership of carbon rights, the State Government can safeguard Sabah's interests and ensure the benefits of carbon-related initiatives are returned to the people. Without clear regulation at the State level, these interests risk being exploited without fair returns. Through registration and clear carbon rights recognition by the State, all authorised carbon activities can be monitored and their benefits channelled into sustainable development and ecosystem protection. 'This is essential to maintaining State sovereignty and ensuring that all carbon-related activities are transparently and centrally governed,' he said. The Enactment also places strong emphasis on indigenous community participation, particularly for carbon activities proposed on Native Customary Land under the Land Ordinance. 'Any such activity must involve meaningful consultation with the relevant communities or their appointed representatives. This ensures indigenous people play an active role in carbon initiatives while preserving their rights, heritage and identity,' he said. In addition, the law introduces mandatory GHG emissions reporting by entities specified in the Enactment. Abidin said this is crucial to ensuring Sabah has comprehensive, up-to-date and verifiable data on the environmental impact of its economic activities. Accurate data will enable the State Government to shape better policies, implement effective mitigation and adaptation strategies, and elevate Sabah's credibility in global climate governance. The Bill consists of 11 parts. The first addresses preliminary matters including the title, commencement, and legal consistency. The second establishes SCAC as the apex body for climate governance, chaired by the State Secretary and comprised key ministry representatives and appointed experts. The third part creates the Sabah Climate Registry and Inventory Centre, a technical and administrative body managing climate data, carbon rights and a Measurement, Reporting and Verification (MRV) system aligned with national and global mechanisms. Part four sets up the Sabah Climate Fund, managed by the Centre's Director, to support climate projects, capacity development and administrative needs. Part five mandates the involvement of indigenous communities in proposed carbon activities on native customary land, including direct engagement, benefit sharing and, if needed, community development elements – all subject to approval. Part six sets the legal framework for carbon activities, including recognition, registration and ownership of carbon rights, while prohibiting unregistered claims. Part seven governs carbon credits, stating only registered rights holders may generate them. It also introduces levies on transactions and annual royalties for credits produced in Sabah. Part eight mandates GHG emissions reporting and introduces a State carbon budget – a cap on cumulative net emissions – along with requirements for sectoral reporting, emissions balancing and Council-led mitigation and adaptation planning. Part nine covers enforcement, while Part ten addresses general provisions. Abidin said the Bill was drafted through extensive stakeholder engagement to ensure that its implementation will meet policy objectives effectively. Its core mission is to establish a credible, transparent climate and carbon governance system that safeguards State sovereignty, protects indigenous rights and builds Sabah's long-term climate resilience. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malay Mail
08-07-2025
- Business
- Malay Mail
Sabah introduces carbon rights law with indigenous safeguards
KOTA KINABALU, July 8 – The Sabah State Legislative Assembly today passed landmark laws to regulate carbon activities, including the recognition, registration, and ownership of carbon rights and carbon credits. In a Bill read by Assistant Minister to the Chief Minister Datuk Abidin Madingkir, the Sabah Climate Change and Carbon Governance Enactment 2025 aligns with evolving national and international climate policies. 'Carbon assets will be utilised through carbon projects supported by a robust carbon accounting mechanism to reinforce the state's development direction,' he said. 'Carbon asset utilisation will be strategically planned to support economic sector growth, including through emission balancing mechanisms,' he added. 'In the short term, this approach also considers the need to protect the competitiveness of key economic sectors, particularly in terms of job opportunities and the welfare of vulnerable communities,' he said. The Bill introduces a two-tier system: the existing Sabah Climate Action Council (SCAC) will act as the one-stop policy-making body, while the appointed director will oversee implementation and regulation of carbon activities and greenhouse gas emissions. The Bill mandates greenhouse gas reporting from listed sectors and entities, strengthening Sabah's ability to track environmental impact. 'The Bill also pays serious attention to the involvement of indigenous communities, especially for carbon activities carried out on land recognised as native customary land under the Land Ordinance,' said Abidin. 'Any proposed carbon activity on such land must involve consultation with the respective native communities or their appointed representatives,' he said. 'This approach gives indigenous communities an active role in the implementation of carbon activities and ensures that developments do not harm their rights, identity, or heritage,' he added. 'Their consent, participation, and benefit-sharing must be formally integrated into project proposals,' he said. The Bill also moots the Sabah Climate Registry and Inventory Centre, which will manage climate data, carbon rights, and the MRV (Measurement, Reporting, and Verification) system, as well as the Sabah Climate Fund to finance climate-related initiatives. 'Part Six of the Bill governs the regulation of carbon activities, including recognition, registration, and legal ownership of carbon rights, and bans any unregistered claims,' he said. 'Part Seven regulates carbon credits, ensuring only certified carbon rights holders may generate them, and introduces levies and annual royalties on carbon credits transacted or generated in Sabah,' he said. Part Nine provides for enforcement powers and general provisions. In 2024, Sabah completed its first Greenhouse Gas Inventory, showing it is a net carbon sink, absorbing more carbon than it emits and contributing around 36 per cent of Malaysia's total carbon absorption. 'At the same time, Sabah is also one of the most climate-vulnerable regions in Malaysia,' he said. 'We are seeing the effects through increasing and worsening floods, coastal erosion affecting settlements, and changes in livelihoods of rural communities,' he said. 'These twin realities demand a clear vision and immediate action,' he added. 'Our goal is to ensure that the benefits of Sabah's unique position are felt directly by the people while meaningfully contributing to the global climate effort,' he said. 'However, this transition requires capacity, investment, and strategic cooperation,' he said. He said that the state will continue to engage constructively with all stakeholders — state, national, and international — including the Federal Government, to build the necessary systems to ensure a fair, progressive, and sustainable climate path that leverages Sabah's unique natural strengths.
The Star
08-07-2025
- Politics
- The Star
Sabah passes climate change Bill after blowing past Paris Agreement targets
KOTA KINABALU: Sabah has passed the Climate Change and Carbon Governance Enactment 2025, following official confirmation that the state absorbs more carbon than it emits, placing it ahead of global expectations set under the Paris Agreement. Assistant Minister to the Chief Minister Datuk Abidin Madingkir, who tabled the Bill in the State Legislative Assembly on Tuesday (July 8), cited findings from Sabah's first Greenhouse Gas Inventory, conducted last year, which identified the state as a net carbon sink, a rare position globally. 'In simple terms, we absorb more carbon than we emit. Sabah has already gone beyond what the world is asking for under the Paris Agreement. We have done our part, today, for Malaysia's 2050 net-zero commitment,' he said. The data showed that Sabah contributes approximately 36% of Malaysia's total carbon sequestration, underscoring its environmental value and strategic importance in the low-carbon global economy. Madingkir described this status as a 'strategic economic asset' in a carbon-constrained world, and one that must be 'guarded jealously'. 'This is not something we can take lightly. If we are not careful, we could quickly lose this position and become a carbon polluter like many others, squandering the advantage we currently hold,' he said. Despite this rare advantage, he reminded the assembly that Sabah remains one of the most climate-vulnerable regions in Malaysia, grappling with floods, coastal erosion and threats to rural livelihoods. The newly passed Bill aims to address both challenges, turning vulnerability into opportunity. The Climate Change and Carbon Governance Enactment 2025 establishes a legal framework for regulating carbon-related activities, protecting the state's carbon assets and building institutional climate resilience. Key provisions include establishing the Sabah Climate Action Council (SCAC) as the state's lead policy advisory body; creating a Climate Fund and Inventory Centre for tracking greenhouse gas emissions; mandating emissions reporting by listed entities; affirming that carbon rights belong to the state government; and ensuring the participation of Indigenous communities, especially for projects on customary land. The Bill also provides a mechanism for managing carbon credit generation, benefit-sharing and enforcement, supported by a two-tier governance structure with oversight across state agencies. Madingkir explained that environmental matters fall under the state's legislative authority, as they are not included in the Ninth Schedule of the Federal Constitution. Land, water and forests, key to carbon governance, fall under List II (State List), strengthening Sabah's legislative right to act, he added. He stressed that while Sabah already leads in environmental performance, maintaining this lead will require capacity-building, funding and strategic partnerships, especially with the Federal Government and global stakeholders. 'Our goal is to ensure that the benefits of this unique position reach the lives of Sabahans, while contributing meaningfully to global climate progress,' he said. The Enactment passed with strong support from lawmakers across the aisle, reflecting political will to position Sabah at the forefront of green policy and carbon economy.
Daily Express
04-07-2025
- Business
- Daily Express
Sabah risks losing out on carbon rights if…
Published on: Friday, July 04, 2025 Published on: Fri, Jul 04, 2025 By: Abbey Junior Text Size: Future Alam Borneo Chairman Anton Ngui said Sabah cannot afford to remain passive, especially with growing global interest in carbon markets and green finance. Kota Kinabalu: Sabah may be on the verge of repeating past mistakes that cost it control over vital resources – unless it urgently asserts its rights over carbon and forest assets before the Federal Climate Change Bill is tabled in Parliament later this year. Environmental groups and State leaders are warning that Sabah could once again be sidelined in national policy decisions, as it was with oil, palm oil and maritime boundaries – where Federal laws were passed with little or no input from the State, stripping Sabah of decision-making power. Advertisement Although the Sabah Climate Action Council was established in 2024 to steer State climate efforts, there is still no clear policy or legal safeguard in place to ensure Sabah retains authority over its carbon resources. Future Alam Borneo Chairman Anton Ngui said Sabah cannot afford to remain passive, especially with growing global interest in carbon markets and green finance. 'History is repeating itself. If we wait again, carbon will become another resource that's taken from under us,' he said. He stressed that Sabah, as Malaysia's largest carbon sink, is not only in a strong ecological position – it also has an opportunity to lead the country's transition into a climate-resilient economy. 'Sabah should be leading, not just complying. There's an opportunity here to create long-term, high-value jobs in green technology and sustainable development – instead of being stuck with just agriculture and extractive industries,' he said. Anton also called for stronger leadership from state policymakers to ensure Sabah's voice is heard at the federal level, especially as Malaysia prepares to strengthen its international climate commitments. 'Carbon is the future. And it's time we treated it like an asset we own, not something others get to trade on our behalf,' he added. Sabah Climate Change Adviser Datuk Darrel Webber, speaking at the Carbon Sovereign Sabah (CSS) briefing earlier this year, warned that once Sabah loses control over how its forests are managed for carbon crediting, it would be extremely difficult to regain that authority. 'Sabah has spent decades protecting its forests, which now serve as a major carbon sink that offsets emissions from other regions. It is crucial that we don't give up control over that,' he said. The call for urgency has been echoed by other leaders. Tungku Assemblyman Assaffal Panglima Alian said stronger State-level legislation is needed immediately to ensure Sabah's long-term interests are secured. Senator Datuk Nelson Wences Angang pointed out that while federal climate policies are necessary, Sabah must have a seat at the table in designing them. 'Otherwise, we risk ending up with laws that don't reflect our realities on the ground,' he said. WWF-Malaysia's head of conservation for Sabah, Dr Robecca Jumin, said Sabah has already taken some positive steps – including amending the Forest Enactment 1968 to allow for carbon-related activities – but that momentum needs to be followed through. 'If we delay further, those gains might be lost under national frameworks that don't prioritise state-level management,' she said. This is not the first time the issue has been raised. Last year, Sabah Deputy Chief Minister Datuk Seri Jeffrey Kitingan warned during a state assembly sitting that Sabah needed its own carbon laws urgently – or risk being sidelined once again by federal decisions. The message from civil society and leaders alike is clear: Sabah must act now – or lose out on a critical opportunity to control its environmental and economic future. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
