By WU VUIDE
KOTA KINABALU: Sabah will not allow unvetted carbon projects to be rushed to market or traded on speculation, despite immense opportunities in the state’s carbon market.
Chief Minister Datuk Seri Hajiji Noor said the state will protect its reputation through strong regulatory discipline.
“Poorly designed projects, overstated climate claims, undervalued resources and the exclusion of native communities will undermine investor confidence,” he said.
“It is in Sabah’s commercial interest to uphold the highest standards of environmental, social, financial and governance integrity.
“Buyers will demand full transparency,” he said at the Sabah Carbon Market Forum: Unlocking Carbon Market Opportunities for Sabah at a hotel yesterday.
His speech was read by Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun.
Hajiji said the Sabah Climate Change and Carbon Governance Enactment 2025 recognises the state government’s ownership of carbon rights and sets clear rules for project approval and credit trading.
He said the Sabah Climate Change Action Council will oversee climate policy, prepare the state carbon budget for ministerial approval and gazettement, and coordinate between state and federal agencies.
The Sabah Climate Registry and Inventory Centre will provide technical and operational support to the council, he said.
Together they offer investors a transparent regulatory gateway for project approvals and registration of carbon rights, he added.
Sabah has Malaysia’s first nature-based verified carbon credit initiative, the Kuamut Rainforest Conservation Project, he said.
It covers 83,381 hectares of lowland and hill forest and is expected to deliver emission reductions of about 800,000 tonnes of carbon dioxide. It has been rated best-in-class by BeZero Carbon, the global carbon credit ratings agency, he said.
The state is developing a diversified portfolio of carbon assets across key sectors, he said.
In the blue economy, he said Sabah has more than 340,000 hectares of mangroves, the largest continuous mangrove area in Malaysia, with potential in marine biotechnology, sustainable aquaculture and marine-based tourism.
In agriculture, he said its oil palm industry covers nearly 1.5 million hectares, offering opportunities for methane capture and mitigation using agricultural waste.
In renewable energy and green technology, guided by the Sabah Energy Roadmap and Master Plan 2040, the state will expand solar, hydropower, biomass and biogas to provide reliable, accessible and affordable energy, he said.
It aims to increase the share of renewable electricity by 2030, he added.
In carbon capture and storage, he said Sabah’s offshore geological basins offer long-term potential for geological storage, positioning it as a nationally significant industrial hub for the region.
Hajiji said almost 30 per cent of Sabah’s land is designated as Totally Protected Areas. This contributes to Malaysia’s biodiversity commitments and the 2030 global conservation target under the Kunming-Montreal Global Biodiversity Framework.
Sabah is also Malaysia’s primary net carbon sink, based on greenhouse gas inventory data. Its extensive forest cover strengthens Malaysia’s overall carbon absorption capacity of about 36 per cent, he said.
“Through inclusive forest management in partnership with local communities, we balance conservation with socio-economic wellbeing. Sabah’s identity and future are rooted in our natural heritage,” he said.
Masidi launches the Sabah Carbon Market Forum.
