KUALA LUMPUR: The existing state law in Sarawak on carbon trading will be used as reference to enact a similar law at the federal level, says Sarawak Premier Tan Sri Abang Johari Tun Openg.
Speaking after the Hari Raya Open House in Kuching, he said Prime Minister Datuk Seri Anwar Ibrahim has agreed to incorporate the current state legislation to enact Federal Government laws related to carbon trading.
"The PM will introduce the law (soon), which will be based on our state laws. The Federal Government is also sending people to study our laws, which are recognised by the World Bank before they are incorporated into the legislation," he said.
Abang Openg said the carbon trading industry has high potential, especially involving the shipping industry, where liners have to refuel with "green" fuel.
He said the carbon trading laws in Sarawak have met certain world standards such as those of the World Bank.
Last November, Sarawak became the first state to enact legislation related to carbon trading, after the state assembly passed the
Environment (Greenhouse Gas Emissions Reduction) Bill 2023, opening doors to green energy fuel utilisation and reducing carbon emissions.
Abang Openg said Anwar told his deputy, Datuk Amar Douglas Uggah Embas, that he agreed to use the state's law as a reference in the state's national finance council meeting recently.
Sarawak's strategic location between India, China and the far east makes carbon trading more promising in the state.
Abang Johari added that it is an opportune moment for the country to engage in carbon trading, especially with global shipping lines transitioning away from fossil fuel towards green methanol.
However, he emphasised the need for a national intervention and policies, as the state may not be able to carry out this endeavour alone.
While stressing the urgency for Malaysia to establish legal frameworks for international carbon trade and emissions mitigation, he said this will encourage and ensure that all common trading is within legal parameters.