O&G players who fail to reduce carbon emissions to be penalised under new law

JC Fong

By Lian Cheng

KUCHING, Nov 23: Following the passing of the Environment (Reduction of Greenhouse Gases Emission) Bill 2023, oil and gas players who fail to reduce carbon emissions to a level specified by the Sarawak government will be penalised.

According to Sarawak Legal Counsel Dato Sri JC Fong, under the new law, the oil and gas sector would have to reduce emissions to a level prescribed by the Sarawak government.

Additionally, the flaring and venting of natural gas will be controlled to reduce the emission of carbon dioxide.

“If they are unable or unwilling to reduce carbon emissions, they will be subject to a penalty in the form of a carbon levy imposed upon them.

“The assessment on the level of carbon emissions shall be based on emission reports verified by independent auditors, which would be submitted to the Controller of the Natural Resources and Environment Board (NREB) annually,” Fong told DayakDaily.

He said the new law will ensure forest carbon projects wi be implemented according to the principles stipulated in the Paris Agreement which include safeguarding the interests and rights of the native communities who will be consulted.

The Law, he said, will facilitate Carbon Capture Storage (CCS), which is essential in order to achieve net zero emissions by 2050.

On Nov 20 (Monday), Deputy Minister in the Premier’s Department (Law, MA63 and Federal-State Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali tabled the Environment (Reduction of Greenhouse Gases Emission) Bill 2023 which paves the way for Sarawak to have its own complete regulatory framework on clean and renewable energy, including for carbon credits, carbon levy, and carbon emission threshold.

The Bill which was passed on the same day allows the Sarawak government to regulate greenhouse gas emissions, promote carbon capture and storage, and mitigate climate change effects to achieve net zero carbon emissions by 2050. — DayakDaily