Abg Jo: Sarawak to start carbon levy on energy sector’s regulated facilities this year

KUCHING (Jan 13): Sarawak will implement a carbon levy on regulated facilities in the oil, gas, and energy sectors beginning this year, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said proceeds from this levy will be channelled into a dedicated Climate Change Fund to support renewable energy deployment, energy efficiency, forest conservation, grid modernisation, and climate-resilience initiatives.

“Collectively, these efforts have repositioned Sarawak. We are no longer viewed solely as a resource-based economy but increasingly recognised as a credible and reliable partner in regional and global economic transformation,” he said in a special ‘Amanat Perdana’ address here.

The carbon levy was introduced under the Environment (Reduction of Greenhouse Gases) Ordinance 2023, building on Sarawak’s strengthened financial position and institutional framework developed over recent years.

Abang Johari said Sarawak is also advancing a circular economy approach in its next phase of development, where waste is viewed not merely as a cost to be managed but as a potential source of value and innovation.

“Circular economy principles will be integrated across municipal waste, industrial by-products, agricultural residues, and construction materials, shifting the focus from disposal to recovery, reuse, and value creation.

“Waste-to-energy and material recovery initiatives will be pursued in a structured and commercially viable manner, reducing landfill dependency, improving resource efficiency, and contributing to emissions reduction,” he said.

In the agricultural sector, he said biomass and organic waste will be leveraged to support bioenergy, biofertilisers, and downstream processing activities, creating additional income streams for rural communities while strengthening food and energy security.

“The circular economy agenda will be driven through partnerships, with state-owned enterprises anchoring strategic projects and the private sector scaling commercially viable solutions.

“Supported by carbon levy and the Climate Change fund, this approach strengthens Sarawak’s revenue resilience and reinforces sustainable development without compromising growth,” he said.

Among those present at the ceremony were Deputy Premiers Datuk Amar Douglas Uggah Embas, Datuk Amar Awang Tengah Ali Hasan, and Datuk Amar Dr Sim Kui Hian; State Legislative Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia Awang Nasar; and State Secretary Datuk Amar Mohamad Abu Bakar Marzuki.