KUCHING: Carbon trading involving cross-border transactions must be conducted in line with international law, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said such activities must be registered with the United Nations Framework Convention on Climate Change (UNFCCC) under Article 6 of the Paris Agreement.
“The laws are already in place. If we claim to have our own framework, then our laws must be aligned with international laws.
“Since this trade involves countries, we are also subject to international regulations. We initiated the effort first, and later the Federal Government took charge of its implementation — which has now become part of Federal law,” he said.
Abang Johari explained that under Article 6 of the UNFCCC, all carbon transactions must be duly registered.
“We must record how much carbon is released and how much is stored. It may seem complicated, but it’s actually not too complex.
“Over time, the process will become easier — just like any regular trade transaction,” he told reporters after officiating the Sarawak Net Zero Strategy and Carbon Plan Open Day themed ‘ Accelerating Climate Action in Sarawak’ held here today (Oct 7).
He said Sarawak has already developed its own regulations to govern carbon capture, utilisation and storage (CCUS) activities and carbon trading. The state is now collaborating with the World Bank to refine the pricing mechanisms and transaction formulas for carbon trade.
“We already have the regulations in place. We have strengthened our environmental framework, and CCUS is part of the core regulations we have implemented.
“There are two types of carbon trading — voluntary trading between two parties, and another that must comply with international laws governing carbon trade,” he said.
He also stressed that under the Federal Constitution, Sarawak and Sabah are not subject to federal laws related to land and natural resources, as both states have their own Land Codes, unlike Peninsular Malaysia which is governed by the National Land Code.
“We have our own Sarawak Land Code. Sabah also has its own legislation, and we are not part of the National Land Code. This means we are separate.
“Therefore, any law concerning land — including forest management or carbon storage — falls under our jurisdiction,” he said.
