Carbon credits could raise up to RM1.09 bil annually for S’wak: Abang Jo

KUCHING – Carbon credits will provide a new source of revenue for Sarawak ranging from RM315 million to RM1.039 billion annually, said Premier Tan Sri Abang Johari Openg.

He pointed out Sarawak has the potential to create carbon sinks from its Permanent Forests, promote carbon sequestration, and undertake tree planting schemes for carbon credits.

“This new approach to forest management represents a shift from the traditional revenue-generating logging of merchantable timber to a more sustainable, long-term approach that prioritises conservation, reforestation, and regeneration.

“In doing so, we are aligning ourselves with global efforts to mitigate the effects of climate change and global warming, while also supporting the Sustainable New Development Goals,” he said at the Asia Carbon Conference 2023 today.

Abang Johari said Sarawak has approximately 7.7 million ha or 62% of its total land area under forest cover.

He pointed out this represents a significant opportunity for the state to be at the forefront of sustainable forestry management policies, with seven million ha allocated for sustainable forestry and conservation under the Sarawak Land Use Policy.

“Of these, six million ha are Permanent Forests, and one million ha are Totally Protected Areas, demonstrating our firm commitment to the conservation and regeneration of our forests,” he said.

With a rich history and culture, and as the largest state in Malaysia, Abang Johari said Sarawak has a responsibility to safeguard the diverse flora and fauna that call the state home for future generations to cherish.

As such, he said environmental sustainability is at the heart of Sarawak’s Post-Covid-19 Development Strategy 2030 with sustainable practices in key sectors such as agriculture, tourism, and natural resource management.

He also shared the state’s strategy for a low-carbon future focusing on the three pillars of economic prosperity, social inclusivity, and sustainable environment, with the aim of achieving net-zero emissions by 2050.

“We are proud to announce that Sarawak is taking bold steps towards a sustainable future by enacting legislation that includes the airspace and properties above the surface of the land, as well as the seabed of the state’s continental shelf. 

The Land Code (Carbon Storage) Rules 2022 provide a legal framework for carbon capture, utilisation and storage (CCUS) activities in Sarawak.

“Sarawak has immense potential for carbon storage, estimated at 30 trillion m3 in the seabed of its continental shelf. Our offshore depleted or abandoned petroleum fields are ideal for secure and permanent storage of captured carbon dioxide (CO2). This presents a significant opportunity for oil and gas companies to fulfil their obligations to reduce CO2 emissions,” he said.

He also shared that the RM4.5 billion mega carbon capture and storage (CCS) project off Bintulu, northern Sarawak, in the Kasawari gas field by Petronas, is poised to revolutionise the regional upstream oil and gas industry.

He said this game-changing initiative will not only drive innovation in the sector but also mark a significant step towards sustainable energy production, benefiting both the industry and the environment.

“This project is expected to reduce up to 3.3 million tonnes of CO2 each year, making it one of the largest offshore CCS projects in the world. This milestone puts Sarawak on the map as a global leader in this technology,” he said.

He also announced that Sarawak recently signed a memorandum of understanding with the Posco Group to jointly conduct a feasibility analysis on a ground-breaking CCS project.

“Furthermore, reputable companies from Singapore and Japan have expressed their keen interest in participating and investing in CCUS in Sarawak. We welcome their support and partnership in our efforts to combat climate change and create a sustainable future,” he added.

Abang Johari also said carbon trading and carbon markets are crucial components of the global effort to reduce carbon emissions and combat climate change.

He said these mechanisms provide incentives for companies and organisations to reduce their carbon footprint, while also promoting innovation and investment in low-carbon technologies and practices.

“The growth of carbon markets has been nothing short of remarkable, with the global carbon market value at approximately US$277 billion (RM1.24 billion) in 2021.

“This is a testament to the fact that businesses and governments around the world recognise the importance of reducing carbon emissions and are committed to taking action.

“However, the road ahead is still long and challenging. We need to continue pushing for more ambitious and comprehensive climate policies, invest in renewable energy sources, and adopt sustainable practices in all aspects of our lives,” he said.

At the conference, he said it is the first of its kind in Asia to gather top industry leaders for carbon offsetting and trading in a rapidly growing global market.

“The conference will set the stage for pivotal policy-making decisions, cutting-edge investment opportunities, and innovative technologies that will shape the future of the carbon market,” he added. – Borneo Post Online, March 15, 2023