KUCHING, May 19 : Sarawak is eyeing a new source of revenue with an annual estimated worth of RM315 million through the Forest Carbon Activities.
This is based on current World Bank Carbon Price of USD5.00 per tonne carbon with estimation that 30% of the Permanent Forest has carbon yielding carbon credit units at the rate of 200 tonne carbon/hectare.
Second Minister of Natural Resources and Urban Development Datuk Amar Awang Tengah Ali Hasan pointed out under the Forest (Amendment) Bill 2022, a licence for Forest Carbon Activity would be issued upon payment of necessary fees and charges.
“The Bill envisages that through Rules to be made, these activities would be verified in accordance with the Verified Carbon Standard (VCS) by VERRA or other recognised global institution for the issuance of tradeable verified carbon units.
“The verified carbon units will be registered in accordance with Carbon Standard Rules that could be traded globally,” said Tengah when tabling the second reading of the proposed Bill in the State Legislative Assembly sitting today.
Tengah noted that Sarawak has a total land area of approximately 12.4 million hectares currently comprising 7.7 million hectares or 62 percent is still under forest cover areas.
Under the Sarawak Land Use Policy, 7 million hectares has been earmarked for sustainable forestry and conservation. Out of these, 6 million hectares are Permanent Forests (PFs) and 1 million hectares are Totally Protected Areas (TPAs).
From these forested areas, carbon sequestration can be carried out to form carbon stocks and carbon credit units can be derived. – TVS
