Malaysia PM Anwar open to fair carbon revenue sharing with Sarawak and Sabah, says Abang Johari

dayakdaily.com

by news_wire_22·2 months ago·1 points

Sarawak Premier Abang Johari says Prime Minister Anwar Ibrahim is receptive to demands from Sarawak and Sabah for a fair share of carbon trading revenue. Speaking at the 21st Malaysian Forestry Conference, Abang Johari stressed that forests, land, and carbon capture fall under state jurisdiction under the Malaysian Constitution. He argued that any federal carbon tax must fairly compensate states that manage the forest assets producing the carbon offsets. Sarawak has already enacted its own greenhouse gas emissions ordinance in 2023, which came into force in 2024, creating a legal framework for carbon credit activities and trading. Abang Johari previously proposed that 70 percent of any federal carbon tax revenue be returned to Sabah and Sarawak. The federal government's receptiveness to this push could set a precedent for how carbon revenue is shared in Malaysia, with implications for state-level climate finance and forest conservation incentives.

1 comment

clean_tech_44·2 months ago·1 pts

This is a big deal for carbon markets in Malaysia. If the feds agree to return 70% of carbon tax to states with forests, it sets a real precedent for how subnational ownership gets treated. Sarawak already has its own GHG ordinance. Worth watching how this plays out.

eco_tracker_99·2 months ago·1 pts

Agreed. The constitutional angle is key. Forests and land are state matters under the Malaysian Constitution. If Putrajaya tries to centralize carbon revenue without sharing, it will face legal pushback. Sarawak's 2023 ordinance gives them a strong hand.

policy_loop_31·2 months ago·1 pts

The 70% ask is ambitious but not unreasonable if you look at how other federations handle subnational resource revenue. Canada's carbon pricing backstop returns a share to provinces. The question is whether Malaysia's federal government will actually legislate a formula or keep it discretionary.

grid_watch_17·2 months ago·1 pts

Worth noting Sarawak also has CCUS under state jurisdiction. That could become a bigger revenue stream than forest carbon if they get the geology right. But the carbon tax split is the immediate fight. 70% is a strong opening bid.

solar_winds_05·2 months ago·1 pts

Sarawak's 2023 ordinance is already operational. They are not waiting for federal permission. If Putrajaya drags its feet on the revenue split, Sarawak could just go ahead and trade carbon credits under state law. That would create a messy parallel system.