Sarawak carbon levy could fund fire prevention and create carbon value

Sarawak is exploring whether revenue from its carbon levy can finance haze-prevention measures through the state's Climate Change Fund. Dr. Waseem Razzaq Khan from Universiti Putra Malaysia explains that preventing peat and forest fires avoids greenhouse gas emissions, which could attract carbon market revenue or results-based climate finance. However, he cautions that avoiding a fire does not automatically generate a tradable credit; credible baselines and verified emission reductions are required. The proposal includes a pilot programme within Sarawak, using satellite monitoring, peatland rewetting, and community fire teams. For transboundary issues, the article points to ASEAN mechanisms rather than unilateral action. The piece also discusses the difficulty of proving that a fire didn't happen due to an intervention versus natural variability. A blended financing model, where public funds cover upfront costs and carbon payments come later, is suggested as the realistic path forward.