Framework of Sarawak’s Carbon Governance under the Environment (Reduction of Greenhouse Gases Emission) Ordinance 2023

Abstract

Sawarak is the first state in Malaysia having law to lower greenhouse gas (GHG) emissions which is the Environment (Reduction of Greenhouse Gases Emission) Ordinance 2023. This shows a big change in how climate is governed by the level of subnational jurisdiction which is setting up a legally biding system that consists of carbon market mechanisms, regulatory control, and economic tools.
This paper examines the principles characteristic and structure of Sawarak’s carbon governance frameworks as set out in the Ordinance. This paper discusses by applying a conceptual and doctrinal framework regarding the regulation of GHG emissions through mandatory registration and emissions reporting, the development of emission thresholds, and the application of compliance measures which consist of caron capture and storage, carbon levies, abatement obligations. This also consists of the processes for issuing and verifying credits, activities that can earn credits, the duties of the Carbon Credit Units Register, and safeguards against double counting.