DEPUTY CHIEF Minister Datuk Seri Jeffrey Kitingan has attributed the delays in implementing the controversial Nature Conservation Agreement (NCA) in Sabah to a general failure among various quarters in understanding the difference between nature capital and carbon trading.
According to him, many of those who have spoken against the project mistakenly perceive the NCA as a carbon trading deal, when it is actually aimed to use Sabah’s biodiversity as capital to generate revenue.
"We will address that (misunderstanding) as soon as possible. This is because they don’t understand what nature capital is.
“Our own officials also do not understand what nature capital is," Jeffrey told reporters in Kota Kinabalu today.
For example, some individuals, including government officials, harbour concerns as they incorrectly associate natural minerals to the NCA, contributing to apprehensions over the agreement.
In essence, while natural capital encompasses the entirety of Earth's ecosystems and resources, carbon trading specifically addresses greenhouse gas emissions.
Investments in nature capital typically involve funding of conservation, restoration and sustainable management efforts, whereas investments in carbon trading are focussed on acquiring emissions permits or credits to incentivise emission reductions, he said.
The NCA, signed between the Sabah government and Singapore-based Hoch Standard Pte Ltd close to four years ago, has been placed on hold due to supplementary conditions added by the state government to initiate the project.
These conditions, outlined in the non-binding agreement, include delineating a designated area, formulating a management plan, securing consent from indigenous communities where necessary, establishing carbon pricing and price discovery mechanisms, ensuring independent oversight, setting objective performance goals, safeguarding key economic sectors, and revenue sharing arrangements.
Additionally, the agreement requires confirmation of the truth and reliability of Hoch Standard’s representation and capability to undertake the carbon trading project.
Recently, Jeffrey, who also served as the state agriculture, fisheries and food industries minister, officially requested a 190,051-hectare natural land area as a pilot site for the project with revenue to be split in a 70:30 ratio.
The area selected covers the Nuluhon Trusmadi Forest Reserve, a class-1 reserve near Tambunan, which among others features Malaysia’s second highest mountain, Mt Trusmadi.
Jeffrey also reiterated his concerns that certain parties have attempted to obstruct the NCA's progress. He however refused to name them explicitly.
He described the group as those who have vested interests in logging and seek to exert control over the NCA.
In defence of the NCA, he stressed that it can benefit Sabah through conservation efforts on the state’s forests, rather than through logging.
"We need to conserve the forests to secure funding. That is how we should be working,” he said.
“But some people's minds are closed. So, we need to educate them."
According to Sabah Attorney-General Datuk Nor Asiah Mohd Yusof, the carbon credit project would also have to be screened by the Sabah Climate Change Action Council which was assigned the role of adviser to the state on carbon credits.
Malaysia’s ambassador and permanent representative to the UN in Geneva, Datuk Nadzirah Osman replied to the UN working group comprising four rapporteurs on human rights that the state had put the project on hold to refine various clauses and to sever erroneous clauses that were deemed “lopsided.”
The response dated February 29 was found on the office of the United Nations High Commissioner for Human Rights’ website.
It was made in response to the query of the four rapporteurs in December last year. – The Vibes, March 15, 2024
