Sabah Exercises Full Sovereignty Over Carbon Projects, State Revenue - Arthur
KOTA KINABALU, Sept 24 (Bernama) -- Sabah will exercise full sovereignty over the development of its carbon projects and the collection of state revenues, said Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup.
He said the Federal Government through the Ministry of Natural Resources and Environmental Sustainability (NRES) would provide the overarching sovereign umbrella required under the Paris Agreement.
“Under Pillar 4 of the National Carbon Market Policy and through the National Decarbonisation Committee, we are committed to harmonising our systems.
“Harmonising state and Federal policy is crucial to ensuring a streamlined process in providing international host-party authorisations under Article 6, and applying Corresponding Adjustments where required,” he said at the Sabah Carbon Market Forum: Unlocking Carbon Market Opportunities for Sabah here today.
He said harmonising Federal and Sabah efforts would ensure that every carbon credit generated in the state, whether from its towering dipterocarp forests, rich coastal blue carbon ecosystems or agrocommodities, carries unassailable environmental integrity, commands premium global pricing, and keeps its economic benefits directly within the state.
Arthur said Malaysia has set its course toward net zero, but policy alone will not build a market.
He said the government could pass legislation and publish guidelines, but it is the state agencies, project developers, financial institutions, verifiers and local communities who bring this market to life.
On a related development, Arthur said NRES is in the final stages of introducing the National Climate Change Bill to provide absolute transparency, predictability and legal enforceability.
He said the Bill would serve as the legal anchor for Malaysia’s carbon pricing architecture and provide the statutory mandate to operationalise and enforce the National Carbon Registry as the authoritative record for emissions tracking and its interaction with the upcoming carbon tax.
The Bill would also formally govern Malaysia’s participation in international carbon trading under Article 6 of the Paris Agreement, with robust safeguards against double counting.
Addressing the relationship between the Federal Government and Sabah, Arthur said land, forests and natural resources fall squarely within state jurisdiction under the Federal Constitution.
He said Putrajaya’s role under the National Carbon Market Policy is not to centralise control, impose top-down decrees or encroach upon state constitutional prerogatives.
Instead, the Federal Government’s responsibility is to serve as an institutional enabler and a bridge to national and global markets, he added.
Commenting on the forum, Arthur said it was timely as Malaysia now enters the crucial phase of turning its natural and technological potential into reliable supply, unlocking robust market demand, and establishing the bankable infrastructure required to execute credible carbon transactions.
He hoped today’s forum would produce clear and practical next steps, credible projects that are ready for responsible development, financing that can be mobilised, and areas where Federal and State systems should be better aligned.
“Our progress should be measured by the integrity of the climate outcomes, the confidence of market participants and the benefits delivered to Sabah and its communities,” he said.
Over 100 participants joined the forum, which was hosted by the Sabah State Government and organised by Bursa Carbon Exchange and the Malaysia Carbon Market Association.
-- BERNAMA