Statement by Deputy Chief Minister Datuk Seri Panglima Dr Jeffrey Kitingan on Carbon Capture, Utilisation and Storage (CCUS) in Sabah.
In light of the recent announcement by Economy Minister Rafizi Ramli regarding the identification of Terengganu, Pahang, Sabah, and Sarawak as potential leaders in the carbon capture, utilisation, and storage (CCUS) industry, I would like to express my agreement that this initiative is indeed a promising endeavour for Sabah.
The potential economic benefits from such high-impact projects are undeniable, and they could significantly contribute to the state’s development and financial health.
However, 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.
As Deputy Chief Minister, I have been actively involved in efforts to monetise the carbon credit industry in Sabah.
This initiative is part of our broader strategy to enhance Sabah’s financial health and reduce our reliance on federal financial assistance.
Sabah is more than capable of managing the CCUS industry independently.
We have several options for independent action:
1. State Legislation:
– Sabah could enact its own laws to regulate CCUS activities within the state. This would require legal expertise and consultation to ensure robust and comprehensive legislation.
– We could negotiate agreements with industry operators and investors to establish a regulatory framework that aligns with international standards.
2. State-Owned Enterprises:
– Sabah could leverage its state-owned enterprises (GLCs) to lead CCUS projects. We could form partnerships with local and international companies to share technical expertise and investment.
3. International Partnerships:
– Establishing partnerships with international organisations and investors could provide the necessary financial and technical support.
These partnerships would be structured to comply with both local and international laws.
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.
Additionally, the carbon credits generated through successful CCUS projects could provide a significant new revenue stream, further enhancing Sabah’s financial independence and sustainability.
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.
