Sarawak to implement carbon levy on oil, gas, energy sectors beginning 2026

Abang Johari (third from the right) officiating the launch of the book Greening Transformation – Sarawak 2030 & Beyond at Borneo Convention Centre Kuching (BCCK) on Jan 13, 2026. Photo credit: Ukas
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By Amanda L

KUCHING, Jan 13: Sarawak will implement a carbon levy starting in 2026, marking a key step in the State’s efforts to address climate change and accelerate its transition towards a low-carbon economy.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the levy will apply to regulated facilities in the oil, gas, and energy sectors under the Environment (Greenhouse Gas Reduction) Ordinance 2023.

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Speaking at the Majlis Amanat Perdana Premier Sarawak 2026 at the Borneo Convention Centre Kuching (BCCK) here today, he explained that revenue from the levy will be channelled into a dedicated Climate Change Fund to support initiatives such as renewable energy development, energy efficiency measures, forest conservation, grid modernisation, and climate resilience projects.

Abang Johari added that the measure is also designed to strengthen Sarawak’s financial and institutional frameworks while promoting sustainable economic growth.

“The levy is part of Sarawak’s broader efforts to build strong financial and institutional foundations.

“It ensures the State is recognised as a credible and reliable partner in regional and global economic transformation,” he said.

The carbon levy is expected to complement Sarawak’s wider climate and energy transition policies, helping the State align with evolving regional and international sustainability standards while reinforcing its long-term development agenda. — DayakDaily

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