KUCHING – Sarawak has reiterated that its authority over carbon trading activities remains firmly under state jurisdiction, stressing that such rights cannot be transferred to the federal government.
Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, made the statement during the closing of the Gabungan Parti Sarawak (GPS) 2026 Convention at the Borneo Convention Centre Kuching.
He explained that carbon trading is directly linked to land and forest resources, which constitutionally fall under the state’s control.
“Carbon trading is within the land resources of Sarawak. If it is taken away, it is a breach of our constitutional right,” he said.
The Premier revealed that the federal government had previously sought to assume control of carbon trading, but Sarawak resisted the move by invoking legal provisions under the Malaysia Agreement 1963 (MA63).
Following negotiations, it was agreed that Sabah and Sarawak would be exempted, allowing both states to manage their own carbon trading frameworks.
“Initially, the federal government wanted to take over the power, but we said the land was Sarawak’s right. The result of the negotiations was finally agreed that Sabah and Sarawak would be exempted, so we would manage our own carbon trading,” he explained.
He further emphasised that Sarawak is currently reviewing proposed federal climate change legislation to ensure the state’s interests are safeguarded.
“I ask the federal government to first discuss it with our SAG (Sarawak Attorney General) because climate change is related to carbon trading,” he said.
Highlighting the environmental significance of Sarawak’s forests, the Premier reminded us that carbon resources generated by the state’s ecosystems are assets that must be protected.
“Trees on Sarawak’s land produce oxygen and control greenhouse gases, so that is our right,” he noted.
He also pointed out that any implementation of a federal carbon tax must consider Sarawak’s rights and resources.
“Although the carbon tax is under the Federation, it must take into account the carbon management resources that are under Sarawak,” he stressed.
The Premier added that the state government will continue to exercise caution when addressing emerging economic issues, ensuring that Sarawak’s interests remain protected.
Observers have noted that Sarawak’s firm stance on carbon trading reflects broader efforts to strengthen its autonomy within Malaysia.
The state has consistently defended its rights under MA63, particularly in areas involving natural resources and environmental management.
Analysts suggest that Sarawak’s position could set a precedent for how Malaysia balances federal and state powers in addressing climate change and sustainability.
With global attention increasingly focused on carbon markets and green finance, Sarawak’s insistence on managing its own carbon trading activities underscores the state’s determination to align environmental stewardship with economic opportunity while preserving constitutional rights.
