The session was to explain the Nature Conservation Agreement (NCA) and field questions from 24 groups that had voiced concerns despite assurances by the Sabah forestry department.

The agreement, between the state government and Singapore firm Hoch Standard Pte Ltd, will not allow exploitation of protected forests in the state.

The NCA’s main objectives are the conservation and protection of tropical rainforests through the monetisation of carbon stored in standing trees, in addition to natural capital benefits in the forest environment.

At a press conference, Kitingan told reporters he was happy with the outcome of the dialogue, contending that the NGOs also felt the same.

“I’m satisfied that we have been able to connect, understand each other and clarify their concerns.

“I’m sure they are also happy with it, so we can move forward from here to ensure the NCA is accepted and implemented. We have explained whatever shortcomings (that were) raised and we will rectify what needs rectification.”

Sabah Environmental Protection Association (Sepa) president Alexander Yee, however, dismissed notions that the NGOs were happy with the discussions.

He said Kitingan did not address a fact sheet supposedly containing leaked information of the deal’s terms and conditions making the rounds on social media.

“Sepa will want another forum and does not agree with what we read about in the (alleged) fact sheet,” he told FMT.

“Since he said he has not seen the fact sheet, we will be writing to him to furnish him with a copy. We want him to verify the contents of the fact sheet before we seek clarification.”

Yee said today’s forum took up too much time to explain the need for carbon trading, which the NGOs were not opposed to.

“We are concerned about the manner it will be carried out. Among our other concerns are (there was) no consultation, working with a third party in Singapore with no proven track record, and the huge area for a pilot project and long duration of 100 years.”

‘Carbon trading deal not publicised’

Sabah chief conservator of forests Frederick Kugan had previously said the focus of the NCA would be forests classified previously as Totally Protected Areas (TPAs).

He said these areas were already “locked in” for conservation and protection under various state laws and international treaties.

Kugan denied a report by environmental protection website Mongabay that the areas were under threat from mining, logging or industrial agriculture.

The online portal had reported that Sabah leaders had signed the deal to market carbon and other natural capital from more than two million hectares of state forests in the next 100 years.

Kitingan briefed the NGOs about the carbon trade deal and its long-term goals for conservation today, but the groups were not overly concerned with carbon trading but with why the deal was not publicised and its terms.

“We are concerned how this deal came about because we only knew of it when someone wrote about it in the news. It came as a shock to us,” said Beverly Joeman, representing CSO Platform for Reform, at the dialogue.

“If the deal is good, by all means go ahead, but how can it be that it was signed when we didn’t even know the deal existed?

“Our primary concern is not how much money we can get or how much forests we have for the carbon deal but the rights accorded to the people. Where is the free, prior and informed consent practice here? Respect the rights of the people of Sabah.”

Kitingan said Hoch Standard was a reliable company dealing with other countries such as Indonesia, Australia as well as those in South America in the monetisation of “nature capitals”, including carbon trading.

“There is no issue with the company,” he said on questions about the reliability of Hoch Standard in implementing the deal.

To another question, he explained that it was untrue that the company had a paid-up capital of only US$1,000, adding that many companies did not need big offices and a large number of employees these days.

Hoch Standard approached the previous state government some four years ago, he said, and as part of the agreement would provide the trading platform that would connect various parties and the United Nations body involved in carbon trading.