KUCHING: Sarawak wants tax incentives for activities related to climate change mitigation to be maintained in Budget 2023.
State Deputy Energy and Environmental Sustainability Minister Dr Hazland Abang Hipni (pic) said such incentives would motivate companies to seriously take up climate change activities.
He said this included carbon storage, whereby carbon from elsewhere could be stored in Sarawak’s depleted oil wells.
“This industry is very capital intensive. It will be useful and helpful for the industry to have some kind of tax incentives, such as no corporate tax for the companies.
“That is the kind of incentives that the industry and climate change mitigation strategy are looking for,” he said on Thursday (Feb 16).
Dr Hazland, who was speaking at a press conference to announce the upcoming Asia Carbon Conference here, added that he would be meeting the Deputy Finance Minister next week to discuss the matter.
Budget 2023 will be tabled by Prime Minister Datuk Seri Anwar Ibrahim on Feb 24.
Dr Hazland also said Sarawak was committed to playing its part in mitigating climate change by reducing carbon emissions and venturing into carbon trading.
“Sarawak has a big land mass and we hold a lot of carbon stock in our forests, mangroves and peat.
“It would not be very smart of Sarawak if we don’t take part in climate change mitigation because not only can we reduce the effects of carbon emission, we can also monetise and create new revenue from strategies to mitigate climate change through carbon trading, carbon storage and renewable energy,” he said.
On the conference, which will be held here on March 14-16, Dr Hazland said it would be a platform to discuss and exchange the latest information, technology and market procedures in carbon trading.
He said the conference would focus on voluntary carbon markets and carbon capture, utilisation and storage.
“It will be useful to hear insights from experts on the future direction of Asian carbon markets as well as the best practices and ideas from the world, which Sarawak will adapt,” he said.
