Why is Sabah exempt from the proposed federal CCUS Bill?

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Sabah is Exempt from the Proposed Federal CCUS Bill Due to Constitutional Jurisdictional Separation

Sabah will not be subject to the proposed federal Carbon Capture, Utilisation and Storage (CCUS) Bill, as land and forestry matters fall under the State List in the Constitution, placing them under the purview of the Sabah government. This constitutional separation of powers means Sabah retains authority over these domains, allowing it to manage its own carbon initiatives independently.
State Authority Over Land and Forestry Matters

The Sabah government's position is rooted in the clear constitutional division of jurisdiction, which designates land and forestry as state matters. Deputy Chief Minister I Datuk Seri Jeffrey Kitingan articulated that these areas are firmly under the State List, thus under the direct control of the Sabah government. This constitutional framework underpins Sabah's ability to develop and implement its own policies regarding carbon capture and utilisation, without being bound by federal legislation in these specific areas.
Sabah's Independent Carbon Credit Programme

Sabah has already established arrangements to generate income through the sale of carbon credits derived from its extensive 2 million hectares of tropical forests. This initiative not only aims to preserve these vital ecosystems but also seeks to provide significant financial resources and opportunities for indigenous communities, while aligning with multiple United Nations Sustainable Development Goals. The state is actively engaged in updating its Forest Enactment 1968 to formally recognise carbon as a forest produce, further solidifying its control over these resources.
Sabah's Own Legislative Development

In parallel with its existing carbon credit programmes, Sabah is proactively developing its own legislative framework for carbon capture and utilisation. This independent legislative process is designed to complement the state's existing land and forestry laws, positioning Sabah to manage its carbon credit potential effectively. The state government believes it is well-advanced and positioned to take responsibility for its carbon resources under its own established laws, irrespective of the proposed federal CCUS Bill.
Alignment with Sarawak and Communication to Federal Council

Sabah's stance on the CCUS Bill is consistent with that of Sarawak, which also asserts that the federal legislation should not extend to the Borneo states and that state laws should govern local CCUS development. This shared perspective was formally communicated to the National Climate Change Council during a meeting chaired by the Prime Minister. This coordinated approach highlights a unified position among the Borneo states regarding their autonomy in managing carbon-related initiatives.

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Why is Sabah exempt from the proposed federal CCUS Bill?

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