Malaysia

Sarawak looks to Scotland-UK model for carbon revenue distribution framework

Premier Abang Johari says state seeks fair returns from carbon sector under new sustainability laws

Updated 1 year ago · Published on 03 May 2025 12:28PM

Sarawak looks to Scotland-UK model for carbon revenue distribution framework
There is a need for a fair mechanism to distribute income derived from carbon levies - May 3, 2025

THE Sarawak government is examining the relationship model between Scotland and the United Kingdom as a reference point for developing a carbon revenue-sharing framework between the state and federal governments, Premier Tan Sri Abang Johari Tun Openg said.

Speaking during a fireside chat at the Sarawak Connect London 2025 Forum, Abang Johari emphasised the need for a fair mechanism to distribute income derived from carbon levies, particularly as the state pushes ahead with new green sectors such as carbon capture, utilisation and storage (CCUS).

“The main question is how the carbon levy is distributed between the federal and state governments,” he said, according to a statement issued by the Sarawak Public Communications Unit (UKAS).

He noted that Sarawak is leading the way in Malaysia’s green transition, having introduced the country’s first law aimed at reducing greenhouse gas emissions.

The Premier stressed that Sarawak does not want to remain a raw material exporter but instead intends to develop a complete value chain within its natural resource industries.

To realise this vision, Sarawak is partnering with international agencies and investors with advanced expertise and technologies from countries such as South Korea, Japan and China, he said.

The state is also exploring opportunities to collaborate with European nations to expand its global investment reach and build a balanced economic network.

“We want to activate economic policies and activities based on our own strengths and I am confident that this approach is bearing fruit,” he added.

The forum session, titled *Sarawak's Global Vision: Sustainability, Innovation and Strategic Partnerships*, was moderated by Lord Jonathan Marland, chairman of the Commonwealth Enterprise and Investment Council. - May 3, 2025

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