He stated that the proposed legislation will be presented in Parliament in November. In the meantime, Sarawak is collaborating with the World Bank to determine carbon sale prices, Bernama reported.

“We must have legislation on how to convey carbon delivery, depending on Kuala Lumpur,” Abang Johari was quoted as saying. “We call it transboundary transport of carbon under federal jurisdiction,” he said in Kuching after the signing of an agreement on renewable energy and biodiversity conservation.

Although the legislation has not yet been finalised, Sarawak could go ahead to issue carbon trading licences, as this matter falls under the state government’s purview.

“There is no problem; our legislation is already in place, we just need to figure out how to transport carbon, for example, how to transport it to Singapore, which requires national government-to-national government coordination,” he said.

“Once Parliament approves it, only then can we trade,” he said.

Last year, Abang Johari said two licences for carbon trading had been issued, involving state-owned oil and gas company Petroleum Sarawak Bhd and timber firm Samling Group.

The memorandum of understanding signed today was between the Sarawak Forestry Corporation, national oil company Petronas, the Sarawak Economic Development Corporation, and the Environment, Social and Governance Association of Malaysia.