KUCHING: Sarawak will implement a carbon tax on regulated facilities in the oil, gas and energy sectors beginning this year, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said the proceeds will be channeled into a dedicated Climate Change Fund to support renewable energy deployment, energy efficiency, forest conservation, grid modernisation and climate-resilience initiative.
“Collectively, these efforts have repositioned Sarawak.
“We are no longer viewed solely as a resource-based economy but increasingly recognised as a credible and reliable partner in regional and global economic transformation,” he said in his New Year 2026 Address at Borneo Convention Centre Kuching (BCCK) here Tuesday (Jan 13).
The carbon levy was introduced under the Environment (Reduction of Greenhouse Gases) Ordinance 2023, based on Sarawak’s increasingly strong financial and institutional base that has been strengthened in recent years.
In addition, he said Sarawak is also exploring circular economy principles under the next phase of development, which will be integrated across municipal waste, industrial by-products, agricultural residues and construction materials, shifting the focus from disposal to recovery, reuse and value creation.
“In this context, waste must be viewed not merely as a cost to be managed, but as a potential source of value and innovation.
“Waste-to-energy and material recovery initiatives will be pursued in a structured and commercially viable manner, reducing landfill dependency, improving resource efficiency and contributing to emissions reduction,” he said.
In the agricultural sector, he said biomass and organic waste will be leveraged to support bio energy, bio-fertilisers and downstream processing activities, creating additional income streams for rural communities while strengthening food and energy security.
“The circular economy agenda will be driven through partnerships, with state-owned enterprises anchoring strategic projects and the private sector scaling commercially viable solutions.
“Supported by carbon levy and the Climate Change Fund, this approach strengthens Sarawak’s revenue resilience and reinforces sustainable development without compromising growth,” he added.
