PETALING JAYA: Prime Minister Anwar Ibrahim is open to Sabah and Sarawak’s push for a fair share of revenue from carbon trading, Sarawak premier Abang Johari Openg says.
Abang Johari said the federal government was “quite receptive” to the views of states, including Sabah and Sarawak, that any carbon revenue mechanism must recognise the contribution and ownership of states that manage vast forest resources.
Abang Johari added that revenue “is a very sensitive matter”.
“That is why we have discussed that even if the federal government imposes a carbon tax, it must be fair to the owners of the assets that produce oxygen.
In this respect, I believe the federal government is receptive to ensuring that we have a fair revenue resource from carbon trading,” he was quoted as saying by Dayak Daily.
Abang Johari said forests, land and carbon capture, utilisation and storage fall under the state’s jurisdiction.
Therefore, he said there must be a harmonious relationship between the federal and State Governments in managing resources that fall under the state list.
Last month, Abang Johari called for Sabah and Sarawak to receive at least 70% of any carbon tax revenue collected by Putrajaya, as the two states serve as Malaysia’s primary carbon sinks.
Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup had said revenue from Malaysia’s upcoming carbon tax will be channelled into a National Adaptation Fund to directly benefit the indigenous communities who serve as custodians of the forests.
“For example, here in Sabah, our biggest asset is our natural forest coverage. And who are the custodians of the forest? They are the local indigenous people who live there,” he told a media conference at the Sabah Asia-Pacific Impact Investing for Sustainable Development Summit 2026, on Monday.
He was responding to a question on how the Ministry plans to engage indigenous communities in the country’s carbon market and carbon tax initiative.
Arthur said communities had raised concerns that the Government would collect revenue from carbon credit and carbon tax schemes without any benefit trickling down to the people who maintain the forests.
“Some of the questions asked, if you implement carbon tax and carbon credit, the Government gets money, but how do we benefit? And that is why we have to make sure that the revenue from the carbon credit flows back into the local indigenous communities,” he said.
He said one of his plans for the carbon tax was to ensure the funds collected are directed into a National Adaptation Fund reserved solely for climate mitigation projects such as flood mitigation, forestry conservation and tree planting.
“That is how we make sure that the revenue goes back to the indigenous communities so that they can help to preserve our natural forests and then the revenue can keep on being there for our country,” he said.
