KUCHING: Sarawak’s 61.52 per cent forest cover will remain a key pillar in the development of Malaysia’s carbon market, with the federal government committed to ensuring that carbon trading progresses alongside forest conservation and the protection of indigenous and local communities’ rights.
Natural Resources and Environmental Sustainability Minister, Datuk Seri Arthur Joseph Kurup, said the approach is particularly important as Sarawak is among the country’s most forested regions, with rich biodiversity that plays a vital role in ecological preservation, climate stability and the state’s green economy.
“This natural wealth is not only crucial in maintaining ecological functions and climate stability, but also supports the well-being of communities through the development of the green economy.
“Our commitment to developing the national carbon market while preserving forests and protecting the rights of local communities is being implemented through close collaboration with the Sarawak Government,” he was quoted as saying in a report by a national online news portal.
Arthur was responding to a question from Senator Abun Sui Anyit during a question-and-answer session in the Dewan Negara on measures taken by the Ministry of Natural Resources and Environmental Sustainability (NRES) to safeguard Sarawak’s forests while ensuring local communities benefit from the country’s carbon credit trading initiatives.
He said one of the ministry’s key measures is the implementation of Sustainable Forest Management (SFM) to ensure forests continue to be managed responsibly and sustainably.
Arthur added that the National Forestry Policy and the Social Forestry Strategic Plan 2021-2025 also place strong emphasis on active community participation in forest resource management through ecotourism, agroforestry and the development of non-timber forest products.
“This approach not only creates employment opportunities and increases community income, but also strengthens the role of local communities as strategic partners in forest conservation, in line with the National Policy on Biological Diversity 2022-2030,” he said.
Arthur said that the federal government continues to support state biodiversity conservation efforts through the Ecological Fiscal Transfer for Biodiversity Conservation (EFT) initiative, under which Sarawak received RM22.04 million this year.
On strengthening governance of the carbon market, he said NRES is drafting the National Climate Change Bill, which will establish a regulatory framework to ensure carbon transactions are conducted transparently and with integrity.
Under the proposed legislation, proceeds from carbon credit trading will be channelled into a Climate Change Fund to finance climate-related initiatives, including programmes aimed at empowering vulnerable local communities.
Responding to a supplementary question on how indigenous communities would benefit from carbon credit projects, Arthur said the ministry is developing innovative financing mechanisms under the National REDD+ Strategy through the REDD+ Financial Framework, which comprises two key instruments – the Forest Conservation Certificate (FCC) and the Forest Carbon Offset (FCO).
He said both instruments are based on the Cancun Safeguards, which emphasise social, environmental and governance protections to ensure carbon market development benefits communities while safeguarding forests and biodiversity.
