Kota Kinabalu: The State Legislative Assembly on Tuesday passed the Climate Change and Carbon Governance Enactment 2025, positioning the State as a leader in environmental stewardship and climate resilience in Malaysia.
Assistant Minister to the Chief Minister Datuk Abidin Madingkir said the Bill was a crucial step to protect and leverage Sabah’s rare status as a net carbon sink – one of the few jurisdictions in the world to absorb more carbon than it emits.
“In 2024, Sabah conducted its first comprehensive Greenhouse Gas (GHG) Inventory. Although there are still data gaps to refine, the findings are striking – we absorb more carbon than we release,” he said when tabling the Bill, Tuesday.
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');});Abidin revealed that Sabah alone contributes approximately 36 per cent of Malaysia’s total carbon sequestration.
“This means Sabah has already gone beyond what the world is asking for under the Paris Agreement. We have already done our part – today – for Malaysia’s 2050 net zero commitment,” he added.
Describing the net sink status as a “strategic economic asset”, Abidin stressed the importance of safeguarding it through sound policy and governance.
“Governments and industries around the world are investing billions to shift towards greener economies. Sabah already has this natural advantage. The challenge now is how to use it wisely – and not lose it,” he said.
He warned that failure to act responsibly could cause the State to forfeit its environmental edge and fall into the same carbon-intensive trap as many others.
At the same time, Abidin said Sabah faces increasing threats as one of the most climate-vulnerable regions in Malaysia.
“We are seeing the effects through worsening floods, coastal erosion and the changing livelihoods of our rural communities. These dual realities demand both vision and urgency,” he said.
The Bill aims to develop comprehensive systems for carbon governance, resilience-building and inclusive climate action – with the ultimate goal of ensuring that benefits reach all Sabahans.
“We want this unique position to not only serve global climate progress, but to improve the daily lives of our people,” he said.
He emphasised that achieving this would require “capacity, investment and partnership”, with active collaboration across local, national and international stakeholders, including the Federal Government.
“Our approach will be constructive, inclusive and grounded in what makes Sabah truly exceptional,” said Abidin.
Abidin said the State had already taken early steps by establishing the Sabah Climate Action Council (SCAC) as the State’s advisory body on climate policy. The newly passed Bill formalises and strengthens this role through a two-tier governance structure – with SCAC as the policy authority and a Director overseeing implementation and regulation of carbon activities and GHG emissions.
The Enactment also asserts that all carbon rights within Sabah belong to the State Government, positioning SCAC as the central one-stop agency for all carbon-related matters.
Abidin said this institutional framework adopts a top-down approach to ensure climate governance is mainstreamed into the entire State administration, including ministries and departments, while also aligning policies across all economic sectors to strengthen institutional capacity and long-term resilience.
He said the Enactment reflects Sabah’s determination to build its own robust and transparent climate governance system, aligned with national and international developments. Carbon assets will be used through regulated carbon projects, supported by a strong carbon accounting mechanism to steer the State’s development goals.
This strategy will promote economic growth – including emission balancing efforts – while protecting the competitiveness of key economic sectors, especially in job creation and support for vulnerable communities.
Abidin said environmental matters are not explicitly listed under the Ninth Schedule of the Federal Constitution and, under Article 77, fall under State jurisdiction.
Furthermore, issues concerning land, forests and water are on the State List (List II), giving Sabah clear justification to enact its own climate and carbon governance laws.
By asserting full ownership of carbon rights, the State Government can safeguard Sabah’s interests and ensure the benefits of carbon-related initiatives are returned to the people.
Without clear regulation at the State level, these interests risk being exploited without fair returns. Through registration and clear carbon rights recognition by the State, all authorised carbon activities can be monitored and their benefits channelled into sustainable development and ecosystem protection.
“This is essential to maintaining State sovereignty and ensuring that all carbon-related activities are transparently and centrally governed,” he said.
The Enactment also places strong emphasis on indigenous community participation, particularly for carbon activities proposed on Native Customary Land under the Land Ordinance. “Any such activity must involve meaningful consultation with the relevant communities or their appointed representatives. This ensures indigenous people play an active role in carbon initiatives while preserving their rights, heritage and identity,” he said.
In addition, the law introduces mandatory GHG emissions reporting by entities specified in the Enactment.
Abidin said this is crucial to ensuring Sabah has comprehensive, up-to-date and verifiable data on the environmental impact of its economic activities. Accurate data will enable the State Government to shape better policies, implement effective mitigation and adaptation strategies, and elevate Sabah’s credibility in global climate governance.
The Bill consists of 11 parts. The first addresses preliminary matters including the title, commencement, and legal consistency. The second establishes SCAC as the apex body for climate governance, chaired by the State Secretary and comprised key ministry representatives and appointed experts.
The third part creates the Sabah Climate Registry and Inventory Centre, a technical and administrative body managing climate data, carbon rights and a Measurement, Reporting and Verification (MRV) system aligned with national and global mechanisms.
Part four sets up the Sabah Climate Fund, managed by the Centre’s Director, to support climate projects, capacity development and administrative needs.
Part five mandates the involvement of indigenous communities in proposed carbon activities on native customary land, including direct engagement, benefit sharing and, if needed, community development elements – all subject to approval.
Part six sets the legal framework for carbon activities, including recognition, registration and ownership of carbon rights, while prohibiting unregistered claims. Part seven governs carbon credits, stating only registered rights holders may generate them. It also introduces levies on transactions and annual royalties for credits produced in Sabah.
Part eight mandates GHG emissions reporting and introduces a State carbon budget – a cap on cumulative net emissions – along with requirements for sectoral reporting, emissions balancing and Council-led mitigation and adaptation planning. Part nine covers enforcement, while Part ten addresses general provisions.
Abidin said the Bill was drafted through extensive stakeholder engagement to ensure that its implementation will meet policy objectives effectively. Its core mission is to establish a credible, transparent climate and carbon governance system that safeguards State sovereignty, protects indigenous rights and builds Sabah’s long-term climate resilience.
