KOTA KINABALU, July 8 – The Sabah State Legislative Assembly today passed landmark laws to regulate carbon activities, including the recognition, registration, and ownership of carbon rights and carbon credits.
In a Bill read by Assistant Minister to the Chief Minister Datuk Abidin Madingkir, the Sabah Climate Change and Carbon Governance Enactment 2025 aligns with evolving national and international climate policies.
“Carbon assets will be utilised through carbon projects supported by a robust carbon accounting mechanism to reinforce the state’s development direction,” he said.
“Carbon asset utilisation will be strategically planned to support economic sector growth, including through emission balancing mechanisms,” he added.
“In the short term, this approach also considers the need to protect the competitiveness of key economic sectors, particularly in terms of job opportunities and the welfare of vulnerable communities,” he said.
The Bill introduces a two-tier system: the existing Sabah Climate Action Council (SCAC) will act as the one-stop policy-making body, while the appointed director will oversee implementation and regulation of carbon activities and greenhouse gas emissions.
The Bill mandates greenhouse gas reporting from listed sectors and entities, strengthening Sabah’s ability to track environmental impact.
“The Bill also pays serious attention to the involvement of indigenous communities, especially for carbon activities carried out on land recognised as native customary land under the Land Ordinance,” said Abidin.
“Any proposed carbon activity on such land must involve consultation with the respective native communities or their appointed representatives,” he said.
“This approach gives indigenous communities an active role in the implementation of carbon activities and ensures that developments do not harm their rights, identity, or heritage,” he added.
“Their consent, participation, and benefit-sharing must be formally integrated into project proposals,” he said.
The Bill also moots the Sabah Climate Registry and Inventory Centre, which will manage climate data, carbon rights, and the MRV (Measurement, Reporting, and Verification) system, as well as the Sabah Climate Fund to finance climate-related initiatives.
“Part Six of the Bill governs the regulation of carbon activities, including recognition, registration, and legal ownership of carbon rights, and bans any unregistered claims,” he said.
“Part Seven regulates carbon credits, ensuring only certified carbon rights holders may generate them, and introduces levies and annual royalties on carbon credits transacted or generated in Sabah,” he said.
Part Nine provides for enforcement powers and general provisions.
In 2024, Sabah completed its first Greenhouse Gas Inventory, showing it is a net carbon sink, absorbing more carbon than it emits and contributing around 36 per cent of Malaysia’s total carbon absorption.
“At the same time, Sabah is also one of the most climate-vulnerable regions in Malaysia,” he said.
“We are seeing the effects through increasing and worsening floods, coastal erosion affecting settlements, and changes in livelihoods of rural communities,” he said.
“These twin realities demand a clear vision and immediate action,” he added.
“Our goal is to ensure that the benefits of Sabah’s unique position are felt directly by the people while meaningfully contributing to the global climate effort,” he said.
“However, this transition requires capacity, investment, and strategic cooperation,” he said.
He said that the state will continue to engage constructively with all stakeholders — state, national, and international — including the Federal Government, to build the necessary systems to ensure a fair, progressive, and sustainable climate path that leverages Sabah’s unique natural strengths.
