Environment (Reduction of Greenhouse Gases Emission) Ordinance, 2023 (Cap 85)

The Ordinance aims to protect Sarawak’s environment by regulating greenhouse gas (GHG) emissions and transitioning toward net zero carbon emissions by 2050. It primarily applies to ‘scheduled economic sectors’, specifically the Oil and Gas and Energy sectors. Business entities within these sectors are required to register and submit annual Carbon Emission Reports based on international standards. If an entity’s emissions exceed a determined carbon emission threshold, it must either implement an approved reduction plan or be subject to a carbon levy. The Ordinance introduces a comprehensive framework for Carbon Credit Units, allowing for the issuance, trading, and retirement of credits derived from projects like carbon capture and storage (CCS), forest carbon activities, and renewable energy projects. Furthermore, it grants the Controller power to restrict the flaring and venting of petroleum or GHGs and establishes a Registrar to maintain a secure electronic register of all carbon credit transactions.

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