“It would include more than two million hectares of forest, supposedly to restore it from mining, logging and industrial agriculture for the next 100 years or so. Against this background, this paper discussed the essence of carbon trading”, said Dr James Alin during his talk on October 3, 2023.
The State Government of Sabah has taken sustainable development to a new level through the Nature Conservation Agreement (NCA). Signed on 28 October 2021 between the State of Sabah and Hoch Standard PTE LTD, the NCA aims to sell forest carbon storage, sequestration, and other ecological services to companies interested in purchasing credits to offset their CO₂ emissions.
Carbon trading, sometimes referred to as the carbon market, has become a controversial yet increasingly important toolin the global fight against climate change. Under this system, companies that cannot fully eliminate their emissions can purchase credits generated from projects that protect or restore forests, wetlands, or other ecosystems. In theory, it creates an incentive to keep forests standing rather than cutting them down.
However, as highlighted in Dr. Alin’s presentation, the mechanism raises critical questions. How will revenues be shared with local communities? What safeguards are in place to ensure genuine forest protection and not just paper promises? Who has the right to represent and manage Sabah’s forests in international markets?
While examples from around the world demonstrate that carbon deals can generate significant financial resources for conservation, they also show potential risks such as land tenure disputes, lack of transparency, and uneven distribution of benefits.
The session concluded by revisiting a fundamental question:
What are the real advantages and disadvantages of trading forest carbon storage and sequestration? Who truly stands to gain, and who might bear the cost?
As Sabah positions itself in the global carbon market, these are not just policy issues but deeply social ones that will shape the future of our forests and the communities that depend on them.
Written by Chloe Lee Mei Tchuin
The Sabah Society prides itself on having served the society at large by organising talks, slide presentations and public forums on subjects ranging from nature, wildlife, conservation and environment to issues of current interests. Presently, the talks are held at the Society’s office at Damai Plaza. Many distinguished speakers have graced the podium at the Society providing insight and information to both members and non-member attendees. These educational talks are open to the public and the attendance is free of charge.
