Two forest carbon licences issued covering 31,141 hectares

KUCHING: Sarawak has issued two Forest Carbon Licences (FCL) covering a combined area of 31,141.2 hectares to support forest conservation, sustainable forest management, and the development of a green economy.

Deputy Minister of Natural Resources and Urban Development, Datuk Len Talif Salleh said the licences were granted to Lembaga Amanah Kebajikan Islam Kuala Rajang (LAKIKR) for 4,788.2 hectares in Tanjung Manis, Rajang Delta, and Shin Yang for 26,353 hectares in the Jalin Forest Carbon Area in Ulu Baram.

“This is to strengthen our forest conservation, sustainable forest management, and green economic development,” he said during the licence handover ceremony at the State Legislative Assembly (DUN) building here today.

He said the issuance followed several years of preparatory work and marked another step in Sarawak’s efforts to develop its forest carbon trading industry.

“The two projects involve different forest ecosystems, with the LAKIKR project focusing on mangrove forests in the Rajang Delta, while the Shin Yang project focuses on forest management and conservation in Ulu Baram,” he added.

Len said the LAKIKR project marked Sarawak’s first forest carbon licence issued for a blue carbon project.

He highlighted the potential of the Rajang Delta’s mangrove ecosystem in carbon sequestration and sustainable natural resource management, describing it as Malaysia’s largest mangrove forest.

“To date, 11 entities have received approval to undertake forest carbon activities in Sarawak, covering a total area of 2,788,280 hectares.

“Three entities currently hold forest carbon licences covering a combined area of 56,816.2 hectares, he said.

Len said forest carbon projects could provide additional incentives for conservation and restoration, protect biodiversity and ecosystem services, attract green investment and create opportunities for local communities.

However, he stressed that receiving a forest carbon licence did not automatically qualify a project for carbon credit issuance or trading.

“A licence does not automatically qualify a project for carbon credit issuance or trading,” he said.

He explained that projects must meet the relevant carbon standard requirements, including validation and verification by recognised validation and verification bodies, before carbon credits could be issued.

Len Talif (centre) witnesses the handover of one of the licences from Forest Department of Sarawak’s Director, Datuk Hamden Mohammad (left), to the representatives of Shin Yang.

“The Forest Department of Sarawak would continue to strengthen forest carbon governance to ensure compliance with legal and technical requirements while safeguarding environmental and community interests”, he added.

Len said the initiative supported the strategic direction of the Sarawak Budget 2027 and the Post COVID-19 Development Strategy 2030, particularly in protecting natural resources and advancing the state’s green economy.

“Sarawak remains committed to balancing environmental conservation with sustainable economic growth, positioning its forest and coastal ecosystems as valuable assets in climate change mitigation and the development of a green economy,” he said.