Within the first few weeks of 2024, two organisations have been given permits by the Sarawak Government to study and assess forest areas in Sarawak for the potential implementation of carbon activities.
One of them is Lembaga Amanah Kemajuan Islam Kuala Rejang (LAKIKR), which received a forest carbon study permit on 4 January 2024. It involves the study of blue carbon in mangrove swamps covering an area of 30,197ha – the first of its kind in the State.
Shin Yang Sdn Bhd is the other organisation to be issued the study permit on 10 January 2024. The permit will give the company the opportunity to ascertain prospects of carrying out forest carbon activities in Ulu Baram within an area of 26,353ha.
Both organisations, as holders of the carbon study permit, are required to produce and submit a Project Design Document (PDD) containing the results of their studies before applying for a forest carbon licence, as stipulated in the Forests (Forest Carbon Activity) Rules, 2022.
The document produced must comply with international carbon standards in order for these entities to be able to legally engage in carbon trading.
According to the aforementioned Rules, PDD in essence should include details of the proposed forest carbon activity that can, among others, achieve emissions reductions; deliver real, measurable and long-term benefits to the climate; avoid negative environmental and social impacts; and include technology and knowledge transfer used for carbon study.
The Government awarded the first forest carbon study permit to SaraCarbon Sdn Bhd – a subsidiary company of Samling Group – in March 2023.
The permit enables the company to study and implement a carbon nature-based project in Marudi, specifically within Samling’s industrial tree plantation area.
Issuance of forest carbon study permit is part and parcel of the Forests (Forest Carbon Activity) Rules, 2022, which have gone into effect since 1 January 2023. The Rules provide a clear regulatory framework for forest carbon projects in Sarawak, and are expected to attract investment in these projects.
As a whole, the forest carbon initiative is part of the Government’s endeavour to pivot towards a green economy through more “sustainable sources of income” such as carbon trading, as well as its renewable energy sector powered by hydrogen and hydropower.
Utilising Sarawak’s forests in this manner demonstrates its commitment to practise sustainable development in the forestry sector, create new economic opportunities for Sarawakians, and conserve its natural heritage.
What is a carbon study?
The Forests (Forest Carbon Activity) Rules, 2022 defines ‘carbon study’ as:
“a study, the purpose of which is to measure the carbon stock baseline in a carbon study designated area for the purposes of determining whether a proposed Forest Carbon Activity in that carbon study designated area is or is likely to be viable which shall include a survey and assessment of the composition and distribution of the forest, the carbon stock or GHG (greenhouse gas) stock, and other resources in the carbon study designated area as well as the risk analysis in respect of the proposed Forest Carbon Activity.”
Reference:
Churchill, E. (2024, January 4). S’wak Forest Dept issues carbon study permit to Kuala Rajang board. The Borneo Post. https://www.theborneopost.com/2024/01/04/swak-forest-dept-issues-carbon-study-permit-to-kuala-rajang-board/
Forest Department Sarawak. (2024, January 10). Majlis penyerahan Permit Kajian Karbon Hutan untuk Kawasan Jalin Forest Carbon Area, Ulu Baram seluas 26,353 hektar telah diadakan pada [Image attached] [Status update]. Facebook. https://www.facebook.com/ForestDepartmentSarawak/posts/pfbid02s82TFWBwXoUvNNWgm5DQK9D5ZX8q9AG8LUYmc4CF3gYjVRkztHeCdWP9THv1UqQzl
SaraCarbon first in S’wak to receive forest carbon study permit. (2023, March 15). The Borneo Post. https://www.theborneopost.com/2023/03/15/saracarbon-first-in-swak-to-receive-forest-carbon-study-permit/
The Edge Markets. (2023, March 30). Transforming Sarawak into a green economy. https://www.mida.gov.my/mida-news/transforming-sarawak-into-a-green-economy/
The Forests Ordinance, 2015, Forests (Forest Carbon Activity) Rules, 2022 (2022). https://lawnet.sarawak.gov.my/lawnet_file/Subsidiary/SUB_Issue%20No.%2084%20L.N.%20350%20Carbon%20Storage.pdf
Yunus, Y. (2023, July 13). Sarawak Forest Dept: Carbon trading activities to benefit local communities. The Borneo Post. https://www.theborneopost.com/2023/07/13/sarawak-forest-dept-carbon-trading-activities-to-benefit-local-communities/
