KOTA KINABALU, April 28 — Sabah has been officially confirmed as a “carbon-negative” state, meaning it absorbs more carbon than it emits, a finding that could position it to benefit from growing global carbon credit and climate financing markets.

Assistant Minister to the Chief Minister Datuk Ceasar Mandela Malakun said the status was established through recent state-led studies under the Sabah Climate Change Action Council – a climate risk vulnerability assessment and the Sabah Greenhouse Gas Inventory Report 2024 – the first subnational assessment of its kind in Malaysia.

The studies mark a major milestone in the state’s climate and economic planning.

“These efforts have, for the first time, provided the state government with a comprehensive understanding of emissions levels across various economic sectors.

“More importantly, they confirmed Sabah’s status as a carbon-negative (net sink) state, representing a significant contribution to the national climate agenda,” he said in the state legislative assembly sitting today.

Carbon negative means that the state absorbs more carbon than it emits – largely due to its vast forest cover and natural ecosystems. This position is widely regarded as advantageous as global markets increasingly reward carbon sequestration through carbon credits and sustainability-linked investments.

Ceasar added that the state is now focusing on translating this advantage into structured policies and economic opportunities, while safeguarding environmental and community interests.

Central to this effort is the recently passed Sabah Climate Change and Carbon Governance Enactment 2025, which establishes the legal framework for regulating carbon activities in the state.

Under the law, all carbon projects must involve and obtain consent from local communities, particularly indigenous groups, and include benefit-sharing mechanisms.

Ceasar said Section 22 of the enactment mandates consultations as well as proposed benefit-sharing arrangements with communities before any project is approved.

“This means carbon-related activities involving areas belonging to indigenous communities cannot be carried out in isolation without their stake in such projects.

“This provision serves as an important foundation to ensure the interests of local communities, including customary communities, are taken into account in the implementation of carbon projects,” he said in response to a question from Sook assemblyman Datuk Seri Arthur Joseph Kurup.

The state is also planning to establish the Sabah Climate Registration and Inventory Centre, which will oversee enforcement of the enactment and serve as the main registry for carbon projects and emissions data.

At the policy level, the Sabah Climate Change Action Council (SCAC) – set up in 2022 – has been tasked with coordinating climate action across agencies, developing mitigation and adaptation plans, and aligning state policies with national and international commitments.

Among its roles are acting as the state’s focal point on climate matters and facilitating participation in carbon markets and climate financing mechanisms.

Sabah is considered among the most climate-vulnerable states in Malaysia, making adaptation planning a priority alongside mitigation efforts.

At the same time, SCAC will formulate a State Climate Change Policy tailored to Sabah’s ecological and socio-economic landscape, while ensuring alignment with Malaysia’s obligations under the Paris Agreement.