KOTA KINABALU, July 16 — Sabah has welcomed the federal government’s earmarking of Sabah as one of four states to lead in the carbon capture, utilisation, and storage (CCUS) industry, but said that regulation and implementation should be under the jurisdiction of the states involved.
Deputy Chief Minister Datuk Seri Jeffrey Kitingan said the state recognises the potential economic benefits of the industry and has actively been trying to monetise the carbon credit industry for some time.
“It is crucial to emphasise that the regulation and implementation of CCUS activities in Sabah must fall under the jurisdiction of the Sabah state government. Sabah’s autonomy over its resources is paramount, and it is essential that we have the authority to regulate and manage these activities to ensure they align with our state’s specific needs and priorities,” he said in a statement here today.
Kitingan, who has been a proponent of a controversial carbon credit deal in Sabah that was inked in 2021, said that Sabah is more than capable of managing the CCUS industry independently.
He said that the state could legislate the activities on their own by enacting laws aligning with international standards and leverage its own state-owned enterprises and government-linked companies to lead the CCUS projects.
He also said that the state was ready to establish partnerships with international organisations and investors that could provide the necessary financial and technical support.
“These partnerships would be structured to comply with both local and international laws,” said the state agriculture and fisheries minister.
“By taking control of the CCUS industry within Sabah, we can ensure that the economic benefits directly contribute to the well-being of our people. This autonomy will enable us to create a robust regulatory framework tailored to our environmental and economic context, attracting both local and international investments,” he said.
Kitingan added that it was vital Sabah be in charge of its own resources and not be at the whim of the federal government.
“Given the challenges we face in receiving adequate financial returns from our resources, such as the limited percentage we receive from our oil and gas revenues, it is imperative that Sabah fully manages its own resources.
“This approach will ensure that the profits and benefits are maximally realised for the people of Sabah, free from the constraints of federal oversight,” he said.
Recently, Economy Minister Rafizi Ramli said that the government has identified Terengganu, Pahang, Sabah and Sarawak as potential leaders in the CCUS industry because the four states have decommissioned oil wells and existing terminal facilities suitable for CCUS activities.
Rafizi said CCUS is one of the pilot projects in the National Energy Transition Roadmap and they are collaborating with these four states to ensure its smooth implementation.
