KOTA KINABALU, March 7 — After a special inquiry, the Sabah government has told a United Nations working group that the controversial carbon credit programme is on hold while it refines and finds solutions to several issues it deems “lopsided”.
Malaysia’s ambassador and Permanent Representative to the UN in Geneva Datuk Nadzirah Osman has replied to the UN working group on behalf of the state government, assuring them that they were safeguarding the rights of the indigenous people and their land in the ambitious undertaking.
The response from the state government found on the office of the United Nations High Commissioner for Human Rights’ website, dated February 29, 2024, said that the state had no mal-intent into entering the commercial Nature Conservation Agreement (NCA) to repress and diminish the rights of the native Sabahans.
“The Sabah government would like to inform the United Nations Human Rights Special Procedures that the NCA has been over the period under review, in order to refine various clauses and to sever erroneous clauses which have been deemed “lopsided”.
“This is anticipated to help resolve some of the issues raised with the implementation of the NCA and the subsequent concerns that had been articulated by civil societies and government agencies alike,” said the state government in the annexe accompanying the letter, dated February 26, 2024.
It said that the State Attorney General’s Chambers has been firm and consistent in holding back the full implementation of the NCA, pending the resolution of several queries and awaiting the necessary amendments to be made.
According to the submission by the state government, the NCA requires the Singapore-based firm Hoch Standard Pte Ltd (HSPL) to draft and submit a Nature Conservation Management Plan (NCMP) to the Sabah Forestry Department (SFD) for approval before implementation.
They are required to conduct a comprehensive review of the resources within the Designated Areas, including forest resources and engaging with local communities.
“HSPL will be compelled to consult those affiliated communities on the use of such forest resources, in order to develop the co-management plan for these areas, along agreed terms.
“However, if HSPL is unable to reach such an agreement, the Sabah government shall be obliged to remove such areas under the terms and conditions of the NCA. This again is meant to safeguard the rights to use and access such resources from the forest reserves by the communities,” said the state government.
It said that it had the rights to access and use forest produce in its own Forest Enactment 1968 which was formed via an enquiry process similar to the Free, Prior and Informed Consent (FPIC).
The land in the NCA was principally within legally gazetted forest reserves, and not state or native lands.
They also said that even though the state had committed to gazetting 30 per cent of its total landmass as Totally Protected Areas (TPAs) by 2025, they considered non-invasive frameworks such as the generation of emission reduction credits as an admirable approach.
“This could partially finance our conservation activities whilst providing and safeguarding the socio-economic development of the native and non-natives residing adjacent and within the protected areas.”
It also addressed Hoch Standards’ role in the project, stating that they must abide by recognised methodologies and principles and failure to comply with this requirement will result in non-acceptance.
“The proponent has to prove its economic potential and viability of the project i.e., proof-of-concept, as a consequence of activities leading to emission reductions or avoidances over a baseline scenario.
“This was not necessarily an easy task, given the designated areas were totally protected. The one hundred years under the agreed terms of the agreement, was to provide the potential for viability economically; although this was not a guarantee under any given standard currently used for crediting purposes,” it said.
The UN Working Group consisting of four rapporteurs on human rights wrote to Malaysia on December 20, asking for assurance and clarification on several issues in the NCA, including proof of due diligence and plans.
They expressed concern over the lack of transparency on the terms of the contract, the land covered by the NCA, and the many ways that the communities will be affected, as well as the reliability of the company’s capability to implement the agreement.
“Finally, we are concerned that, based on a prima-facie analysis, the NCA does not align with existing international standards and safeguards established for conservation and green economy projects,” they said.
The signing of the NCA in October 2021 granted monopoly rights of two million hectares of a forest located in Sabah to Hoch Standard, which was owned by a British Virgin Islands company, Lionsgate Ltd.
Conservationists and civil groups claimed the agreement was made without respecting Sabah Indigenous Peoples’ rights, including their rights to consultation and free, prior and informed consent (FPIC) and also the designated areas under the project.
Deputy Chief Minister Datuk Seri Jeffrey Kitingan has said the project has been downscaled to a pilot project of 600,000 hectares, some of which is in the Nuluhon Trusmadi forest reserve.
