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Press Releases

Press Releases
Date: 26 July 2023

UNVEILING THE 100-YEAR CARBON CREDIT DEAL ON ITS LACK OF TRANSPARENCY: CSO PLATFORM FOR REFORM DEMAND FOR SABAH STATE GOVERNMENT’S URGENT ACTION TO ADDRESS THE NCA

The CSO Platform for Reform demands the Sabah State Government to immediately and publicly clarify its position on the 100-year deal, Nature Conservation Agreement (NCA), that was signed behind closed doors in October 2021. CSO Platform initiated a joint memorandum that was submitted to the Sabah State Legislative Assembly on 5 December 2021 which demanded for engagement, disclosure and transparency on the Sabah forest carbon deal.

However after almost two years, the government did not take any further action on these demands. The government's direction in this deal remains uncertain, leaving doubts about whether the public interest will ultimately be served in the NCA. There have been recent developments to push through the implementation of the NCA. Deputy Chief Minister Dr Jeffrey Kitingan made a remark on 28 June 2023 that Sabah is currently in the process of committing some 2-million hectares of forest to a 100-year carbon credit conservation project [2]. Later on 3 July 2023, his political secretary, Anuar Ghani, made a statement to call for support to implement NCA immediately to prevent Sabah from losing its revenue from carbon trading.

These developments are in contradiction with the statement made by Nor Asiah Mohd Yusof, the Sabah Attorney-General issued on 9 February last year. In a resolute stance, she emphasised that the deal is entirely unenforceable and firmly asserted that no carbon trading activities whatsoever would be allowed in Sabah until specific provisions are fully met[4]. Given the recent advancements about the NCA, the State Attorney-General must promptly and explicitly declare their position on this matter, and leave no room for ambiguity.

CSO Platform for Reform, a coalition of more than 60 NGOs, also urges the Sabah Chief Minister, Haji Hajiji bin Noor to issue an official statement on the status of the NCA. Hajiji’s government, which supports the Madani government, should strive to be more engaging, accessible and transparent with the local communities, particularly the indigenous communities who will be impacted by the NCA.

Transparency is the cornerstone of good governance. The absence of transparency surrounding NCA has led to widespread scrutiny and suspicion from local and international organisations and media. There is no clear information on its effectiveness and potential risks to the state's environment, economy and indigenous communities. The NCA does not guarantee that Sabahan rights and interests are safeguarded during the 100 years. We reiterate that we are not against the Nature Carbon Agreement, but we are deeply concerned that the deal of committing two million hectares of Sabah land to the 100 years carbon credit conservation was shrouded in secrecy, without free prior and informed consent (FPIC) process which should involve the local communities, and ultimately keeping Sabahans at large out of the process.



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