SARWAK will charge a fee for forest carbon traded in the state, Deputy Premier Awang Tengah Ali Hassan told the state assembly today.
Awang Tengah, who is the Sarawak second minister for natural resources, said the 5% rate was competitive to encourage participation in forest carbon projects.
He said the government will also impose an annual land use tax for carbon trading.
He did not say when the fee and tax would be introduced.
Awang Tengah told the assembly that the international formula for carbon prices had yet to be set.
“The prices of carbon traded globally are currently based on agreements and mutual consent between buyers and sellers" he said.
In compliance with international carbon standards, forest carbon licensees are required to display information about their forest carbon projects on their websites.
Sarawak's commitment to address the challenges of climate change based on the global agenda of net-zero emissions by 2050 represents intangible benefits that are significant and cannot be measured solely in dollars and cents, he told the assembly.
“Sarawak is a leading pioneer in Malaysia in forest carbon initiatives. These forest carbon initiatives will promote sustainable forest management practices and reduce the impact of climate change,” Awang Tengah said.
“The initiatives will also enhance economic prosperity, social inclusion, and environmental sustainability in line with the Sarawak government's Post-Covid Development Strategy 2030.”
He said the state had received 13 forest carbon research permit applications since the Forests (Forest Carbon Activity) Rules were passed in 2022.
He said two of the permits have been issued. Eight are under evaluation and three applications have been rejected, he added.
Apart from being a new source of income for the state, Awang Tengah said carbon trading will address climate change.
“This initiative will further strengthen our forest conservation efforts as carbon trading does not involve tree felling or land clearing.” – May 15, 2024.
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