Borneo states should receive up to 90% of carbon tax revenue, says Telang Usan representative

A Malaysian state representative has proposed that Borneo states Sarawak and Sabah retain up to 90% of carbon tax revenue generated from their forests and carbon projects. The argument is that these states host the carbon sinks and bear the opportunity cost of not developing land, so they deserve the majority of proceeds from any national carbon tax scheme. The proposal raises practical questions about how carbon tax revenue would be collected and distributed between federal and state governments. If implemented, it could set a precedent for other forest-rich regions negotiating revenue splits in national carbon pricing systems. The discussion also touches on how states would use the funds for conservation and community development. For carbon market observers, this is a concrete example of the political and fiscal negotiations that accompany carbon pricing. The outcome could influence investment certainty for nature-based carbon projects in Malaysian Borneo.