Just scrap carbon trade deal, Warisan man tells Sabah

 

The deal is to monetise carbon stored in standing trees in Sabah’s tropical rainforests but has faced criticism over the lack of transparency. (Bernama pic)

PETALING JAYA: A Warisan assemblyman has urged the Sabah government to scrap its carbon trade agreement with a Singapore-based firm instead of keeping it perpetually on hold.

Sri Tanjong assemblyman Justin Wong said the highly publicised deal, known as the nature conservation agreement, was a commercial agreement that would only be legally binding upon being signed and stamped.

“Unless there is an exit clause stipulated (in the agreement) within which the state government would not be bound to any legal repercussions arising from this ‘on hold’ mode, why just put it on hold?

“Why not just terminate it since it has raised many eyebrows and failed to comply with certain due diligence requirements,” he told FMT.

Justin Wong

The Sabah government reportedly confirmed to a United Nations working group that the carbon trade deal was on hold, pending a review of several “erroneous clauses deemed lopsided”.

Malay Mail reported that the UN group was concerned over an apparent lack of transparency on the terms of the deal, including the land it covers and how it would affect the local community.

The agreement, signed in October 2021 with Hoch Standard Pte Ltd of Singapore, aims to conserve and protect Sabah’s tropical rainforests by monetising carbon stored in standing trees, in addition to natural capital benefits in the forest environment.

It was criticised by the state opposition, conservation activists and business stakeholders due to the lack of transparency surrounding the deal, which was signed discreetly.

Sabah attorney-general Nor Asiah Yusof said in 2022 that the deal was not finalised and was unenforceable, and that no carbon trading would be implemented without the consent of native communities.

Nor Asiah also said the agreement was a non-binding framework that was subject to due diligence.

Last month, Sabah legal adviser Ahmad Fuad said the agreement was legally flawed and does not comply with the Sabah Biodiversity Enactment 2000.

Wong said the agreement with Hoch Standard should be voided and revived only after proper regulations were in place and due diligence conducted. - FMT