KUALA LUMPUR: The management of carbon offsets by the states must go through the federal government, said Environment and Water Minister Datuk Seri Tuan Ibrahim Tuan Man.
In reference to the Nature Conservation Agreement (NCA) between Sabah and a Singaporean firm, he said the ministry was made to understand that there is no legal deal binding yet, as the state government and the foreign company were still in discussion.
Tuan Ibrahim stressed that it would be better than any state or even private entities who are interested in managing it to discuss the matter with the ministry.
"Many companies are reportedly interested in purchasing carbon offsets.
"We are in the midst of preparing a legal framework for carbon offsets management," he said after attending the 2021 Low Carbon City Awards Ceremony at EQ Plaza Kuala Lumpur here today.
The NCA was signed by the Sabah government and Singapore firm Hoch Standard last year. The 100-year carbon trade deal would involve the use of up to two million hectares of state land, some of which are environmentally sensitive.
The controversial deal was criticised as the Singapore-based firm was to receive 30 per cent of profits for the project which has yet to see any details or explanation.
Earlier this month, Tuan Ibrahim said that the ministry has no information on the dealt and only learnt it through reports and written statements from representatives of the Sabah state government which was published in the media.