Malaysia, famend for its lush rainforests and wealthy ecosystems and ranked the twelfth most megadiverse nation on the earth, stands at a crossroads the place environmental conservation meets financial alternative.
With the escalating world local weather disaster, the position of forests in carbon sequestration has gained unprecedented significance. Malaysia’s expansive forest cowl presents a considerable alternative for producing carbon credit (estimated to be within the vary of US$1 billion), but the journey towards realising this potential is fraught with complexities, primarily stemming from an intricate jurisdictional panorama.
Malaysia’s forest cowl — primarily based on the official registry of land use — stood at roughly 55.3 per cent of its land space in 2020, representing a helpful carbon sink with immense potential for local weather mitigation efforts. The Malaysian economic system’s heavy dependence on palm oil poses one set of challenges. The growth of oil palm plantations has been a major driver of deforestation and forest degradation in Malaysia; policymakers and stakeholders should stability the financial pursuits of the palm oil sector and forest conservation imperatives.
On the coronary heart of Malaysia’s forestry sector additionally lies a jurisdictional quagmire, whereby forest administration is predominantly ruled by state authorities fairly than federal oversight. Traditionally, Peninsular Malaysia and Borneo (Sabah and Sarawak) have Indigenous communities with deep connections to the land however governments have permitted intensive development of the logging trade with regional variations in practices, rules, and environmental issues. This decentralisation of energy poses a hurdle to the efficient administration and regulation of forests, notably regarding carbon credit score initiatives. But, regardless of this jurisdictional problem, Malaysia is anticipated to launch its first native nature-based carbon credit score by means of the Kuamut Rainforest Conservation Venture in Sabah, a venture which began a little bit over six years in the past.
In Malaysia, state authorities typically rely closely on logging as a supply of revenue, presenting a major barrier to prioritising the safety or regeneration of forests conducive to carbon credit score markets. The attract of rapid financial positive factors from timber extraction typically overshadows the long-term advantages of stopping deforestation or reforesting beforehand logged areas. Consequently, allocating sources in direction of such initiatives turns into difficult, because it requires diverting consideration from a profitable trade deeply entrenched in native economies. Moreover, Malaysia lacks a carbon tax system to set the value of carbon. The present dismal pricing of nature-based credit, hovering round US$1.50 — an enormous drop from US$8-9 in 2019, largely as a consequence of criticism of the credibility and efficacy of carbon credit — undermines the funding incentive for state authorities, because the potential returns might not offset the income generated from logging actions. Thus, the convergence of financial dependency on logging and the undervaluation of nature-based credit creates a formidable barrier to fostering significant conservation, not to mention reforestation, essential for carbon credit score era in Malaysia.
The attract of rapid financial positive factors from timber extraction typically overshadows the long-term advantages of stopping deforestation or reforesting beforehand logged areas.
Severe challenges additionally stem from the shortage of uniformity in forest administration practices throughout Malaysian states. Various rules, enforcement capabilities, and conservation priorities contribute to inconsistencies in carbon sequestration efforts. With out constant protocols for measuring carbon shares and emissions reductions from forests, the credibility and transparency of Malaysia’s carbon credit score initiatives will proceed to be known as into query as buyers and worldwide stakeholders demand verifiable knowledge to make sure the legitimacy of carbon offsets.
Furthermore, problems with land tenure and indigenous rights complicate the panorama of carbon credit score era in Malaysian forests. Indigenous communities, typically stewards of the land for generations, maintain customary rights over huge forested areas. Any carbon credit score initiatives should prioritise the inclusion and empowerment of those communities, respecting their land rights and conventional information. Failure to take action not solely dangers exacerbating socio-environmental injustices but additionally undermines the long-term sustainability of carbon sequestration efforts. In response to this, verification schemes equivalent to Verra’s Local weather Group & Biodiversity Requirements proceed to advocate for considerate initiatives on sustainable land administration to assist Indigenous communities profit from new jobs, safe tenures to land and defend conventional cultures.
Regardless of these challenges, Malaysia does possess inherent strengths that may be harnessed to unlock the carbon credit score potential of its forestry sector. Malaysia has demonstrated a dedication to sustainable forest administration by means of initiatives such because the Malaysian Timber Certification Scheme (MTCS), the Coronary heart of Borneo (HoB) conservation initiative and the latest arrange of the Malaysia Forest Fund (MFF) with a mandate to discover the institution of a Forestry Carbon Offset Protocol.
Malaysia ought to undertake a multifaceted strategy to navigate the complexities of jurisdictional governance and unlock the total potential of its forestry sector for carbon credit score era. First, there may be an pressing want for enhanced coordination and collaboration between state and federal authorities to harmonise forest administration insurance policies and regulatory frameworks. This consists of the event of standardised methodologies for carbon accounting and monitoring, making certain transparency and accountability throughout all forestry carbon credit score initiatives.
Moreover, significant engagement with Indigenous communities is important to make sure the equitable distribution of advantages and safety of customary land rights. Empowering Indigenous peoples as key stakeholders in carbon credit score initiatives not solely enhances the social integrity of initiatives but additionally strengthens their resilience to exterior pressures.
Malaysia stands at a crucial juncture the place the convergence of environmental conservation and financial alternative presents a pathway towards sustainable improvement. Nevertheless, the realisation of Malaysia’s carbon credit score potential in forestry hinges upon overcoming the jurisdictional complexities that pervade the sector. By way of concerted efforts to harmonise governance, improve transparency, and prioritise social inclusivity, Malaysia can emerge as a pacesetter in harnessing the local weather mitigation potential of its huge forested landscapes. The enactment of the much-anticipated local weather change regulation in Malaysia, which is anticipated to cowl points round deforestation and doubtlessly the governance of carbon credit, would additionally assist streamline local weather change mitigation efforts.
Renard Siew is a sustainability and local weather change specialist. He serves as a supervisor at Cambridge Institute of Sustainability Management (CISL) and adjunct professor of local weather change and sustainability at UNITAR. He’s head of sustainability for Yinson, an vitality infrastructure and providers firm taking part within the Bursa Carbon Alternate.
This text was first printed on Fulcrum, ISEAS – Yusof Ishak Institute’s blogsite.
