Leading the way in carbon fight
Sarawak to be first in Malaysia enforcing emissions regulations after Land Code amendment
KUCHING: The Land Code (Amendment) Bill 2022 was passed in the State Legislative Assembly (DUN) yesterday a er receiving support from the majority of members of the august House.
This paves way for Sarawak to become the first state in Malaysia to have legislations that would require industries, including oil and gas, operating in the state to comply with international requirements to reduce carbon emission intensity under the United Nations Framework Convention on Climate Change (UNFCCC).
The Bill was tabled and moved by Deputy Minister in the Premier of Sarawak’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman
Ghazali.
A total of 16 members of the august House debated the Bill, including three Opposition members.
Two of the Opposition members, Baru Bian (PSB-Ba Kelalan) and Chong Chieng Jen (DAP-Padungan), had sought for clarification on certain ma ers regarding the Bill.
Baru sought clarification on whether the Alteration Boundaries (Sarawak) Order in Council 1954 has been affected by the Territorial Sea Act 2012 which limits the territorial waters of Sarawak to three nautical miles.
To this, Sharifah Hasidah said the said Order had extended the boundaries of Sarawak to include that part of the continental shelf which remains the boundaries of the state a er Malaysia Day by reason of Article 1(3) of the Federal Constitution.
“For this reason, the Territorial Sea Act does not affect the state’s sovereign rights over the continental shelf, which is 200 nautical miles from our coast.
“As previously mentioned by our Premier of Sarawak during our Malaysia Agreement 1963 (MA63) negotiation, the boundaries of Sarawak as extended by the 1954 Order in Council is non-negotiable,” she told the august House.
On the clarification sought by Chong on the two intentions of the Sarawak government in relation to carbon storage, namely whether it is for monetising revenue or reducing emission of carbon, she said the amendment of the Bill is intended to regulate land use for carbon storage which would result in the reduction of carbon dioxide emission by oil and gas companies.
“In the process, the carbon dioxide captured would be either stored in areas approved by the State Planning Authority (SPA) or to be used for industries like production of blue hydrogen, blue ammonia or biofuel.
“Consequently, carbon storage brings additional sources of revenue to the state and enables the generation of carbon credit units,” she explained.
As for the issue of spectrum, she informed the DAP Sarawak chairman that the amendment seeks to enable the state to exercise its regulatory rights over the use of spectrum in the airspace above land in Sarawak.
“This is for us to regulate the spectrum. It is not in any way in conflict with the Federal Constitution,” she stressed.
She gave her assurance that the Sarawak government will give proper a ention to safety, security and environmental integrity issues which may arise in the process of regulating carbon storage.
“We will also conform to international standards and practices in implementing carbon storage projects.”
Sharifah Hasidah said the amendments to the Land Code were intended to aid, and facilitate the implementation of the Sarawak government’s Post Covid-19 Development Strategy 2030.
“I would like to re-emphasise here and in line with the Post Covid-19 Development Strategy (PCDS) 2030 on environmental sustainability, there is a need to ensure sustainable economic activities through the adoption of the new technologies and innovations, continuation of environmentally sound practices and strategies such as greening efforts and improving enforcement of regulatory frameworks.
“Therefore, to achieve the above objectives, it is necessary to amend our current laws to comply with new practices and strategies for promoting environmental sustainability as well as to secure opportunities for new sources of revenues for the state through regulating and controlling the use of land for carbon storage and the use of spectrum in the column of the airspace above the land.
…it is necessary to amend our current laws to comply with new practices and strategies for promoting environmental sustainability as well as to secure opportunities for new sources of revenues for the state…
Datuk Sharifah Hasidah Sayeed Aman Ghazali
“This is also to safeguard the state’s constitutional and legislative authority over land use in the state including land which is part of the Continental Shelf within the boundary of the state,” she explained.
Earlier, when tabling the Land Code (Amendment) Bill 2022, Sharifah Hasidah said the Bill sought to amend the Land Code to regulate and control the use of land, onshore and offshore, in the sea bed 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 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, 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.
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 our 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 legislations like the National Land Code.
She said the amendment would 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 projected 10,000 “new, well-paid jobs in Sarawak” created for the carbon capture, utilisation, and storage (CCUS) industry as well.