Disclose designated areas under Nature Conservation Agreement, WWF Malaysia urges Sabah

WWF-Malaysia has called on the Sabah government to reveal the designated areas included in the initial 600,000ha under the Nature Conservation Agreement (NCA), aiming to clarify any uncertainties surrounding the agreement. The state government’s deal with Singapore-based Hoch Standard Pte Ltd has faced criticism from environmentalists and civil society organisations due to a lack of transparency. Despite attempts to derail it, the agreement for the sale of carbon credits from state forests for a period of 100 years will proceed.

Head of Conservation at WWF-Malaysia, Dr Robecca Jumin, emphasised the importance of transparency in carbon offset projects. She urged the government to disclose the exact areas designated in the NCA and to invite Hoch Standard to explain the project to the public. According to Dr Jumin, not all categories of protected forest are eligible for carbon offset, referencing Deputy Chief Minister cum state Agriculture, Fisheries and Food Industry Minister Datuk Seri Dr Jeffrey Kitingan’s mention of Trusmadi’s inclusion in the NCA. She questioned whether the Nuluhon Trusmadi Class I Forest Reserve would also be part of the agreement, considering that Class I forest reserves are typically not eligible for carbon offset due to the principle of additionality.

The concept of additionality, a critical principle in carbon offset projects, requires that carbon credits represent emission reductions or removals that would not have occurred without the incentive from the carbon market. Dr Jumin highlighted that only forests designated for exploitation, such as logging or agriculture development, can claim additionality by preventing such activities that would have otherwise been inevitable. She mentioned that the NCA will be evaluated against international standards like the Verified Carbon Standards (VCS) and the Integrity Council for the Voluntary Carbon Market (ICVCM), which demand adherence to principles including additionality, real and measurable emissions reduction, permanence, independent verification, and transparency.

In order for carbon offset projects to meaningfully contribute to reducing greenhouse gas (GHG) emissions, it is crucial that they genuinely address the urgent global need for GHG reduction. WWF-Malaysia urged the state government and Hoch Standard to provide more detailed information on the NCA, including how additionality can be demonstrated, in order to meet the requirements set by the VCS programme.