KOTA KINABALU: Sabah must have jurisdiction over its resources including carbon deals, says Datuk Seri Dr Jeffrey Kitingan (pic).

The Deputy Chief Minister II said Sabah is more than capable of managing the Carbon Capture, Utilisation and Storage (CCUS) industry independently.

He said while the CCUS industry promises potential economic benefits for the people and its state, it is crucial to emphasise that the regulation and implementation of CCUS activities in Sabah must fall under the jurisdiction of the state government.

“Sabah's autonomy over its resources is paramount, and it is essential that we have the authority to regulate and manage these activities to ensure they align with our state's specific needs and priorities,” said Kitingan in a statement.

This follows the recent announcement by Economy Minister Rafizi Ramli on the identification of Terengganu, Pahang, Sabah, and Sarawak as potential leaders in the CCUS industry.

He said some options for independent actions include the enactment of its own state legislation on this, leverage its state-owned enterprises (GLCs) to lead CCUS projects, and establishing partnerships with international organisations and investors.

Kitingan said state regulations would require legal expertise and consultation to ensure robust and comprehensive legislation.

“We could negotiate agreements with industry operators and investors to establish a regulatory framework that aligns with international standards,” he said.

In leveraging GLSs, he said Sabah could form partnerships with local and international companies to share technical expertise and investment.

As for international partnerships, this could provide the necessary financial and technical support for the state but these partnerships would be structured to comply with both local and international laws, Kitingan said.

“As Deputy Chief Minister, I have been actively involved in efforts to monetise the carbon credit industry in Sabah. This initiative is part of our broader strategy to enhance Sabah's financial health and reduce our reliance on federal financial assistance,” he said.

“By taking control of the CCUS industry within Sabah, we can ensure that the economic benefits directly contribute to the well-being of our people,” he said.

Kitinan said this autonomy would enable Sabah to create a robust regulatory framework tailored to its environmental and economic context, attracting both local and international investments.

Additionally, the carbon credits generated through successful CCUS projects could provide a significant new revenue stream, further enhancing Sabah's financial independence and sustainability, he said.

“Given the challenges we face in receiving adequate financial returns from our resources, such as the limited percentage we receive from our oil and gas revenues, it is imperative that Sabah fully manages its own resources,” he stressed.

He said this approach will ensure that the profits and benefits are maximally realised for the people of Sabah, free from the constraints of federal oversight.

https://www.thestar.com.my/news/nation/2024/07/16/sabah-more-than-capable-of-handling-own-carbon-deals-says-kitingan