By Amanda L
KUCHING, Nov 24: Sarawak will impose a carbon levy on the oil and gas (O&G) and energy sectors under its 2026 Budget, a decisive move to drive the State’s transition to a low-carbon, climate-resilient economy.
According to Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, proceeds from the levy will fund renewable energy, energy efficiency, forest conservation, and climate-resilience projects across Sarawak.
He said the levy is part of a broader climate strategy, including the establishment of the Sarawak Climate Change Centre and implementation of the Sarawak Climate Change Roadmap.
“Carbon pricing becomes a crucial policy instrument—internalising environment and social costs, reducing emissions in high-emitting sectors, accelerating the green economy transition and ensuring a just and equitable transition for workers and communities,” he said during the tabling of the Sarawak Budget 2026 at the Legislative Assembly (DUS) sitting today.
The roadmap, anchored in the Environment (Reduction of Greenhouse Gases Emission) Ordinance 2023, will guide Sarawak towards net-zero carbon emissions by 2050.
It complements the Sarawak Greenhouse Gas Management System, a digital platform tracking emissions across sectors to ensure compliance.
Abang Johari added that RM3.4 million will be set aside in 2026 to strengthen institutional readiness and accelerate efforts towards measurable emission reductions as well as environmental sustainability.
Meanwhile, an RM7 million will be channelled to implement the Net Zero Strategy and Carbon Plan, studying carbon pricing and levy, enforce the Sarawak Energy Transition Policy, and quantifying forest carbon stocks.
The Climate Change Centre will coordinate climate action, integrate policy, research, and data, and provide a platform for collaboration with industries, academia, and international partners.
Abang Johari added that Sarawak will coordinate closely with the Federal Government to align with Malaysia’s national carbon tax framework, positioning the State to lead decarbonisation efforts and develop a robust domestic carbon market. — DayakDaily
