KOTA KINABALU: The newly-passed Climate Change and Carbon Governance Enactment 2025 has positioned Sabah to attract regional investment in the growing carbon market, said Chief Minister Datuk Seri Hajiji Noor.
In a speech delivered by State Finance Minister Datuk Seri Masidi Manjun at the Asean Sustainable Forestry Summit 2025, Hajiji said clear legislation gives investors confidence, while regional cooperation is key to long-term growth.
He stressed the need for Asean to develop common standards, align regulations, and recognise carbon credits across borders to avoid fragmented systems that discourage investment.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});The Enactment also establishes the Sabah Climate Action Council, a Climate Fund, and an emissions inventory, while affirming carbon rights under state jurisdiction and introducing a clear structure for project approvals and trading.
Hajiji said Sabah’s forests now absorb more carbon than the state emits, contributing about 36 per cent of Malaysia’s total carbon sequestration—an environmental achievement and economic asset.
He also highlighted Sabah’s Forest Plantation Development Action Plan, aimed at rehabilitating 400,000 hectares over 15 years and creating 40,000 jobs, with FMU licence holders urged to stay committed to the plan.
Sabah is also leveraging its strengths in timber and palm oil to attract downstream investment, with Hajiji calling for long-term partnerships to build a resilient, green economy rooted in sustainable forestry and carbon governance.
