Kota Kinabalu: Sabah’s forest cover and pioneering carbon projects have made the State a leader in Malaysia’s climate action, said Natural Resources and Environmental Sustainability (NRES) Minister Datuk Seri Arthur Joseph Kurup.
“Sabah’s forest coverage stands at around 63 per cent, contributing to the country’s national forest cover of 54.4 per cent, well above the 50 per cent minimum obligation the country signed on to in Rio de Janeiro in 1992,” he said.
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“The State pioneered large scale forest restoration as early as the 1990s through the Innoprise-FACE Foundation Rainforest Rehabilitation Project, which has rehabilitated around 25,000 hectares of logged over rainforest in the Ulu Segama Forest Reserve since 1992,” he said in his special address at the Sabah Asia-Pacific Impact Investing for Sustainable Development Summit 2026 (Sabah AIMS 2026), here, Monday.
Arthur said Sabah also leads the country’s nature-based solutions agenda through the Kuamut Rainforest Conservation Project, Malaysia’s first internationally certified nature-based carbon project covering more than 83,000 hectares of tropical rainforest.
“The project has generated more than four million verified carbon credits since its first issuance in 2024, with additional issuances following in 2025. This achievement reinforces Sabah’s position as a pioneer in leveraging carbon finance to support forest conservation, biodiversity protection, and sustainable community development,” he said.
On the Blue Economy, Arthur said the NRES is expanding its focus toward marine ecosystems, promoting sustainable aquaculture, investing in blue carbon assets and safeguarding marine biodiversity.
“The Federal Government, through cooperation with state governments, has begun a nationwide phase out of single use plastic bags to curb plastic waste and protect marine environments,” he said.
On climate legislation, Arthur said Malaysia aims to table its National Climate Change Bill in Parliament this year.
“Once finalised, Malaysia would stand as the second nation in Asean and among only about 60 countries globally, to enact standalone legislation dedicated to climate change,” he said.
“This landmark legislation will provide a clear legal framework to coordinate climate mitigation and adaptation actions, significantly strengthening accountability across all sectors,” he said, adding that it aligns with Malaysia’s obligations under the Paris Agreement and its goal of achieving net zero greenhouse gas emissions by 2050.
Arthur said the bill follows the National Carbon Market Policy launched in April, which sets out a framework for how the carbon market will operate in the country.
He said the planned carbon tax will fall under the Ministry of Finance once his Ministry’s policy framework is in place, and is intended as an incentive rather than a penalty for industries.
“We want to make sure that if we can collect this carbon tax, it is not seen as a punishment to industry, but it should be seen as an incentive to switch to more environmentally friendly processing or operation methods and also as an incentive to switch to green technology,” he said.
He said the Ministry’s efforts are guided by the NRES Strategic Plan 2024 to 2030, anchored on biodiversity conservation, sustainable natural resource management, climate action, environmental protection and green growth.
He said the Ministry’s agency, the Malaysian Green Technology and Climate Change Corporation, is the execution arm for green technology implementation, helping businesses, industries and communities move toward a low carbon future.
Among its initiatives, the corporation is developing greenhouse gas emissions measurement, reporting and verification guidelines for the iron and steel and power generation sectors, and establishing the National Carbon Registry.
For the record, the Sabah AIMS 2026 was attended by more than 300 professionals and industry players from across the Asia Pacific region. Daily Express is the media partner.
Arthur noted that discussions at the Sabah AIMS 2026 centred on practical ways to channel capital into high impact social and environmental projects, pointing to Sabah’s positioning as a testing ground where global investors and sustainability innovators can work directly with local partners on bankable green projects.
He said the summit came at a critical time, with the world facing climate change, biodiversity loss, resource insecurity and widening economic inequality.
“Traditional public funding and philanthropic grants can no longer close the financing gap needed to meet global sustainability targets and Malaysia’s net zero goal,” he said, calling for new financing models that draw private capital toward projects generating both financial returns and measurable environmental impact.
“I hope the Sabah AIMS 2026 becomes a catalyst for closer regional cooperation and mobilises more impact investment capable of generating economic prosperity. I also hope it will help preserve our natural heritage for the wellbeing of future generations,” he said.
He noted that the summit’s project pitching sessions and closed-door meetings give investors, fund managers and project developers direct access to high value ecological assets in the State.
“The market is ready, the pipelines are open and the political will is absolute,” he said, urging participants to move past theoretical discussions and enter into binding, actionable partnerships.
