Sarawak poised for carbon trading, awaits Federal legislation approval
Published on: Monday, August 19, 2024
For illustrative purposes only.
KUCHING: The Sarawak government is currently awaiting the approval of legislation related to the cross-border transportation of carbon dioxide in the Dewan Rakyat before it can commence carbon trading through the Carbon Capture, Utilisation, and Storage (CCUS) project, TV Sarawak reported.
Sarawak Premier Tan Sri Abang Johari Tun Openg said the legislation is necessary for the cross-border sale of this commodity, involving both the seller and buyer governments.
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“For CCUS carbon storage, we must have laws to facilitate the transportation of this carbon, and we are relying on Kuala Lumpur since it falls under federal jurisdiction.
“Carbon is a new matter, so we’ll wait and see what the principles are,” he said after witnessing the signing ceremony of a Memorandum of Understanding (MoU) between the Sarawak Forestry Corporation (SFC) and Petronas on a Nature-Based Solutions Collaborative Project here on Monday.
According to Abang Johari, he understands that the related bill is expected to be tabled during the Dewan Rakyat session in November this year.
When asked about issuing licences for carbon activities despite the lack of a framework for cross-border trading, he said this falls under the state's jurisdiction.
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“We already have the laws in place. We just need the transportation (of carbon) laws. For example, sending it abroad, such as to Singapore, is a matter between the two governments.
“This can be resolved. Once Parliament approves it, then we can trade, and we must comply with the law,” he said.
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