KUALA LUMPUR (March 1, 2019 Environment and Water Minister (Kasa), Datuk Seri Tuan Ibrahim Tuan Man stated today to Parliament that the Sabah state government had not informed Putrajaya of its controversial Nature Conservation Agreement, (NCA), which has been criticized by environmentalists.
He stated that this prevented his Ministry from providing any detail information about the contents of the agreement.
Tuan Ibrahim claimed that the ministry only received information through media statements, written statements from representatives of Sabah state government officials and other media reports.
The honourable member should know that the federal government was not consulted or informed by the Sabah state government during the NCA negotiations. Kasa is unable, at this time, to give a detailed explanation of what the agreement entails.
If the NCA agreement contains international carbon credit transactions it will have a direct effect on the country’s NDCs achievements and net-zero greenhouse gas (GHG) emission aspirations. The Environment and Water ministry also always welcome the Sabah state government to consult and involve the federal government and other stakeholders in discussions on the NCA agreement and the carbon market mechanism in the future, he said.
Tuan Ibrahim was responding a question from Wong Hon Wai, (Bukit Bendera), who asked about the ministry’s position in regulating carbon trading activities. This included carbon trading agreements between foreign companies and the Sabah government.
Sabah was the subject of a controversial carbon credit agreement that could see up two million hectares (or more than half) of Sabah’s forests being used for a pilot project.
The deal attracted criticism for its lack of transparency and the fact that it involved a small, unknown Singapore-based firm that was to be paid 30% of the profits.
In January, Sabahs deputy Chief Minister Datuk Sery Jeffrey Kitingan stated that the state aims for RM5.6 Billion annually by leveraging its forests in carbon credits or other nature monetising arrangements.
The state agriculture minister and fisheries Minister said that the state is taking steps to modernize the industry and create new sources of income by monetizing Sabahs natural assets.
This funding, along with carbon trading and nature conservancy, will unlock conservation assets. We expect to raise RM2.2 to RM5.6 trillion annually without having to cut a tree. However, we also want to preserve and protect the interests of indigenous communities.
He said that the success of the Nature Conservation Agreement will attract private funding up to US$10billion (RM41.8billion).
Tuan Ibrahim revealed to the Dewan Rakyat in December that the planned domestic carbon trading marketplace, a complex mechanism for incentivizing a reduction of carbon emissions, will be Shariah compliant.
The federal government stated that it would follow the European Union in setting-up a domestic carbon trading platform to reduce carbon emissions.
In September, Tuan Ibrahim was reported to have stated that a domestic emissions trading program would be developed by Environment and Water Ministry and jointly implemented with Bursa Malaysia, Bursa Malaysia and other stakeholders.
Details about the carbon trading market are scarce, but the Voluntary Carbon Market Initiative (VCM), announced Finance Minister Datuk Seri Tengku Zirul Abdul Aziz last October, is expected to be launched in Bursa Malaysia. This initiative aims to achieve carbon neutral status by 2050.
He stated that the initiative would serve as a voluntary platform to trade carbon credits between green asset owners and other participants in the transition towards low-carbon practices.
The VCM is part of Putrajaya’s green technology drive and sustainable drive.
Tengku Zafrul had said future spending plans would be aligned to green budgeting, in line with the governments commitment to environmentally-friendly development projects and programmes.
