S’wak to be first state enforcing carbon emissions regulations
KUCHING: Sarawak will become the first state in Malaysia to have legislation that would see industries, including oil and gas, operating in the state needing to comply with international requirements when the proposed Land Code (Amendment) Bill 2022 is passed, said Datuk Sharifah Hasidah Sayeed Aman Ghazali.
The Deputy Minister in the Premier of Sarawak’s Department (Law, MA63 and State-Federal Relations) said these international requirements include reducing carbon emission intensity under the United Nations Framework Convention on Climate Change (UNFCCC).
She pointed out that the proposed amendment Bill seeks to amend the Land Code to regulate and control the use of land, onshore and offshore, in the seabed which forms the continental shelf of Sarawak, for the storage, retention, capture, and sequestration of carbon dioxide or other greenhouse gases of any form or description.
“The carbon dioxide and other greenhouse gases from industries would have to be captured, compressed, transported, and stored underground or in other secure facilities.
“The amendments would empower the State Planning Authority (SPA) to approve sites, both on land and offshore Sarawak, in the Continental Shelf within the state’s boundaries to be used for carbon storage. Once approved by SPA, the licence would be issued for the land to be used as a carbon storage site.
“The licence issued would stipulate all the terms and conditions for carbon storage and matters incidental thereto. These terms and conditions will be set out in the Rules to be made under Section 213 after this Bill is passed,” she said when tabling the Land Code (Amendment) Bill 2022 during the State Legislative Assembly (DUN) sitting yesterday.
The Bill was later passed after receiving support from majority of members of the august House.
Sharifah Hasidah said these rules will encompass mechanisms for trading of carbon credit generated from carbon storage, based on international protocols and standards.
“Carbon storage sites would include depleted oil and gas reservoirs, deep unused saline aquifers, and deep un-mineable coal seams.
“Studies have been carried out by Petros, Petronas, Shell, and other oil companies to develop carbon capture, storage technologies and solutions and to create products from the carbon dioxide kept in storage,” she said.
With this law in place, she said foreign investors would find Sarawak a good investment destination that provides well-regulated facilities or sites for them to comply with international laws on carbon dioxide emission reduction, and the potential benefits of the commercial utilisation of the carbon dioxide captured and stored in accordance with local laws.
Sharifah Hasidah said the proposed amendment Bill also sought to amend the Land Code, which was enacted in 1958, to provide for a new definition of the term ‘land’ so that the statutory meaning of the term ‘Land’ is aligned with that found in other Malaysian legislation like the National Land Code.
“For instance, Section 44 of the National Land Code covers and includes the airspace above the land while under Section 75A of the National Land Code, the State Authority in Peninsular Malaysia has the power to permit the use of air space above state land.
“So, the proposed amendments here would make the column of the airspace above the land fall within the definition of land. In other words, this would make the column of the airspace above the land, part of the land.
“As a consequence, the state government would have control of the airspace and have control on any matters in that airspace such as spectrum.”
She said spectrum, as defined in the Communication and Multimedia Act 1998, is the continuous range of electromagnetic wave frequencies, up to and including a frequency of 420 terahertz.
“The definition of spectrum in our amended Land Code has the same meaning as that assigned in the Communication and Multimedia Act 1988.
“This amendment would enable the state government to ensure that spectrum in the airspace of land in the state would be regulated and used in accordance with plans for the establishment or improvement of statewide telecommunications infrastructure, to support the economic transformation of Sarawak under the Post Covid-19 Development Strategy 2030,” she explained.
Sharifah Hasidah said the amendment will also provide for the control by the state government of the airspace above the earth of the land, and also control of any property in that airspace including, but not limited to, spectrum and also regulating the erection, maintenance and occupation of any structure in that airspace.
“Sarawak has the biggest carbon storage capacity in Malaysia, estimated at 30 trillion cubic feet (TCF) of storage in offshore areas.
“Carbon dioxide stored thus could generate carbon credit equivalent up to RM3.5 billion per year when traded in compliance with Carbon Standards recognised or accepted internationally,” she said, noting that the RM3.5 billion was the state’s estimate and projection.
She said the state had projected 10,000 “new, well-paid jobs in Sarawak” created for the carbon capture, utilisation, and storage (CCUS) industry as well.
“Additionally, carbon storage could enable the development of energy transition industries such as blue hydrogen, blue ammonia and other blue industrial products.
“The state could also derive significant revenues from the licensing of sites for carbon storage and potential commercial utilisation of the carbon dioxide in storage.”
Sharifah Hasidah explained that the amendments are intended to aid, and facilitate the implementation of the Sarawak government’s Post Covid-19 Development Strategy 2030.
“This is particularly in relation to the establishment of a statewide network of telecommunications infrastructure and services for adoption of digital technology, and the sustainable use of our land and natural resources in line with our commitments in taking measures to mitigate climate change and global warming.
“The tabling of this amendment Bill is timely and most appropriate as the government will examine, improve, and update laws from time to time to meet the demands and circumstances of the dynamic modern world and trends and also to keep up with the progressive nature of technology,” she said.