Enactment Opens Doors for Carbon Market Investment in Sabah

29 July 2025

KOTA KINABALU: The recent passing of the Climate Change and Carbon Governance Enactment 2025 by the Sabah State Legislative Assembly has positioned the state to attract increased investment in the carbon market, according to Chief Minister Datuk Seri Panglima Hajiji Noor.

“This legislative framework provides the legal certainty investors require. But the greater opportunity lies in regional cooperation,” Hajiji said.

“To truly develop this space, ASEAN must work towards a functional regional carbon market one with common standards, regulatory alignment, and mutual recognition of carbon credits across borders. Fragmentation will only delay investment.”

Speaking at the ASEAN Sustainable Forestry Summit 2025 held at the Shangri-La Tanjung Aru Resort, Hajiji stated that Sabah stands ready to collaborate with other ASEAN member states to advance this agenda.

“Our forests are already doing their part. Now the governance structures must catch up,” he added.

Finance Minister Datuk Seri Panglima Masidi Manjun delivered the Chief Minister’s speech on his behalf.

The Enactment establishes the Sabah Climate Action Council, a Climate Fund, a state-level emissions inventory, and a benefit-sharing framework, particularly in relation to indigenous communities.

“Carbon rights have now been legally affirmed as the property of the state government. All carbon-related activities, from project approval to credit trading will now be governed by a clear and enforceable legal structure,” Hajiji said.