KUALA LUMPUR, March 1 – The Federal government will be discussing with the state government of Sabah on the carbon trade negotiations the state has embarked with a foreign business entity, Minister of Environment and Water Tuan Ibrahim informed the Parliament today.
He said the Sabah has so far not engaged the Federal Government on the carbon trade business it has been discussing with a party from Singapore.
He was replying to a question from Member of Parliament for Bukit Bendera Wong Hon Wai, who wanted to know the ministry’s stand on carbon trade and on how it is monitoring carbon trading activities such as the recent carbon trade deal between Sabah and a foreign entity based in Singapore.
Tuan Ibrahim said all carbon trading activities involving international transactions will have to go through the national authority established for the purpose.
Citing the major decisions made at the COP 26 UN Climate Change Conference in Glasgow end of last year, the minister said among the basic principles agreed upon for carbon trade involved ensuring compulsory correspondent adjustment to be made to avoid double counting in international carbon credit transactions and to ensure transparency in its trade.
With this, the ministry will be responsible as the body to approve all carbon credit transactions as well as establish the necessary mechanisms to facilitate the trade.
On the Nature Conservation Agreement between the Sabah state government and the private company in Singapore, Tuan Ibrahim said Sabah did not consult the Federal government on the matter. He said the ministry had sought the state to involve the Federal government in its carbon trade matter.
To a further question from Wong, on the ministry’s plans for policies and regulations on the matter, considering there were none at the moment, Tuan Ibrahim said the ministry was already working on the policies and regulations and expected to complete them by the end of the year.