BoPiMaFo: Sabah, Sarawak should retain 100pct of carbon revenue, not 70pct

File photo for illustration purposes only. Photo: AvigatorPhotography/Getty Images via Canva

By DayakDaily Team

KUCHING, June 29: Sabah and Sarawak should retain full ownership of revenue derived from their carbon resources, with any federal share to be determined only through later negotiation, says Borneo’s Plight in Malaysia Foundation (BoPiMaFo).

The call comes in response to Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s recent proposal that 70 per cent of carbon tax revenue should be returned to Sabah and Sarawak.

BoPiMaFo president Daniel John Jambun said while the proposal is a significant acknowledgment of Borneo’s role as Malaysia’s primary carbon sink, the starting principle should go further.

“The forests, land and natural resources of Sabah and Sarawak are State resources.

“If carbon tax revenue is generated because of those resources, the logical and equitable principle is that such revenue should belong to the respective States in the first instance,” he said in a statement today.

He said the federal government may still have legitimate roles in administering national taxation, climate reporting and international obligations, but such functions should be compensated through an agreed contribution from the two Borneo states.

BoPiMaFo argued that negotiations should begin from the principle that Sabah and Sarawak retain 100 per cent of revenue generated from their own carbon resources, with any federal share determined only after mutual agreement.

“As the saying goes, if you negotiate from 70 per cent, you may end up with 50 per cent. If you negotiate from 100 per cent, retaining 95 per cent would still represent a fair and meaningful outcome for the people of Sabah and Sarawak,” he said.

The foundation stressed that this principle should not be limited to carbon revenue alone but extended to broader natural resource revenues, in line with constitutional federalism and fiscal fairness.

It added that Sabah and Sarawak’s forests are not only national assets but also global environmental resources that provide critical carbon storage services to the world.

BoPiMaFo said the discussion on resource revenue must shift away from asking for a larger share towards recognising that ownership of these resources lies with the two states.

“The time has come to move beyond asking for a larger share of State resources. The discussion should instead begin by recognising that those resources belong to Sabah and Sarawak,” it said.

Last night (June 28), Abang Johari has proposed that 70 per cent of any carbon tax collected by the federal government be returned to Sabah and Sarawak.

He said the proposal reflects the critical role Sabah and Sarawak play in absorbing and storing carbon through their vast forest reserves, making them indispensable to the country’s climate commitments. — DayakDaily