KUCHING – Sarawak will begin enforcing a carbon levy in 2026, marking a significant step in the state’s commitment to tackling climate change and advancing a low-carbon economy.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg announced that the levy, introduced under the Environment (Reduction of Greenhouse Gases Emission) Ordinance 2023, will apply to regulated facilities in the oil, gas, and energy sectors.
Revenue generated from the levy will be channelled into a Climate Change Fund, designed to support renewable energy projects, energy efficiency programmes, forest conservation, grid modernisation, and climate-resilience initiatives.
Abang Johari emphasised that carbon pricing is a crucial instrument for reducing emissions in high-emitting industries and ensuring Sarawak’s transition towards net-zero emissions by 2050.
Speaking at the Amanat Perdana Premier Sarawak 2026 event at the Borneo Convention Centre Kuching, themed ‘9 Tahun Gemilang’, the Premier highlighted that the levy represents not only an environmental measure but also a strategic economic policy. He noted that Sarawak is positioning itself as a credible partner in regional and global economic transformation.
Beyond climate policy, Sarawak is strengthening its financial and institutional foundations to ensure sustainable development. The Development Bank of Sarawak (DBOS) has been tasked with providing patient, development-oriented financing aligned with state priorities.
Meanwhile, the Sarawak Sovereign Wealth Future Fund (SSWFF), established in 2024, has already secured approval to invest globally, converting finite resource revenues into long-term financial assets for future generations.
Abang Johari also pointed to Sarawak’s majority stake acquisition in Affin Bank, which has enhanced the state’s presence in Malaysia’s financial system. This move allows Sarawak to better align financial intermediation with long-term development objectives, ensuring that economic growth is supported by robust financial infrastructure.
“These efforts have elevated Sarawak to a higher level. The state is no longer seen solely as a resource-based economy, but increasingly recognised as a credible and reliable partner in regional and global economic transformation,” he said.
The event was attended by Deputy Premiers Datuk Amar Douglas Uggah Embas, Datuk Amar Awang Tengah Ali Hasan, and Datuk Amar Professor Dr Sim Kui Hian, alongside Speaker of the Sarawak Legislative Assembly Tan Sri Mohamad Asfia Awang Nassar, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, federal ministers, deputy ministers, and other dignitaries.
