Sabah is introducing the Sabah Climate Change and Carbon Governance Enactment 2025 to ban unvetted carbon trading projects and protect the credibility of its carbon credits. The law affirms state ownership of carbon rights, with oversight by the Sabah Climate Change Action Council and a new registry. This follows Malaysia's first nature-based verified carbon project, the 83,381-hectare Kuamut Rainforest Conservation Project, expected to cut 800,000 tonnes of CO2 annually. The state plans to expand into mangroves, methane capture, renewables, and offshore CCS. Investors and financial institutions like CIMB and Bursa Malaysia are being courted to fund high-integrity projects. The move signals a shift toward stricter governance in Southeast Asian carbon markets, where concerns about over-crediting and community exclusion have hurt buyer confidence.
