These Rules, consisting of 44 sections, establish the regulatory framework for undertaking Forest Carbon Activities in Sarawak with the main goals of (i) reducing GHG emissions and enhancing the role of forests as carbon sinks by preserving, planting, restoring, and rejuvenating them; and (ii) creating an economic incentive to generate tradable Carbon Credit Units from successfully reducing emissions or enhancing carbon stocks, thereby providing a new source of revenue to fund sustainable forest management and conservation. They regulate (i) Carbon Study Permits: Carbon Study Permits must be obtained from the Director using the prescribed form and fee and are required to carry out a carbon study under these Rules. The application must detail baseline methodologies, proposed forest carbon activities, crediting periods, maps, emission-reduction methodologies and additionality, measures to obtain consent and share benefits with affected native communities, local stakeholder-consultation processes, and any other relevant information. The carbon study designated area approved in a Carbon Study Permit must be at least 100 hectares, and the permit holder is required to carry out the specified activities within that area; (ii) Sarawak Project Design Document: The holder of a Carbon Study Permit shall prepare and submit the Sarawak Project Design Document to the Director, containing the results of the carbon study. It shall include the proposed Forest Carbon Activity and project design, baseline scenario and emissions, demonstration of additionality, outcomes of local stakeholder consultations, estimated emission reductions with a monitoring plan, and any other information required under the applicable Carbon Standard Rules; (iii) Forest Carbon Area: A Forest Carbon Area is land licensed for forest carbon activities, covering at least 100 hectares up to the carbon study area. Owner consent is required for alienated or licensed land, and lands subject to native customary rights are excluded unless written consent is given. Only activities permitted by the carbon licence may be carried out in a Forest Carbon Area, all activities must comply with the law and the Director’s guidelines, and violations may result in inspection, fines, or imprisonment. Under Section 3, the proposed Forest Carbon Activity specified in the Sarawak Project Design Document shall (i) be designed to achieve verifiable emissions reductions; (ii) deliver real, measurable, and long-term climate benefits, minimize the risk of reversals and displacements of emission reductions, address any reversals in full, avoid negative environmental and social impacts, prevent double counting, and establish a robust accounting system; (iii) include technology and knowledge transfer relevant to the carbon study. Furthermore, any person intending to carry out a Forest Carbon Activity shall apply for a carbon licence from the Director.
Under Part IV on registries, the Director shall maintain a Sarawak Forest Carbon Registry, recording details of Forest Carbon Activities, carbon credits, trades, adjustments, cancellations, and other relevant particulars, and a Carbon Licence Register, recording licence holders, Forest Carbon Areas, permitted activities, licence status, tree species, agents, and related changes. Both registers are kept at the Forest Department headquarters, entries are made by the Director or authorized officers, may be inspected by the public for a fee, and registry details are submitted to the Ministry for record. For what concerns Monitoring, Reporting, and Validation, the holder of a carbon licence must monitor, report, and validate their Forest Carbon Activity in accordance with applicable Carbon Standard Rules, submitting annual reports to the Director on project details, boundaries, methodology, emission reductions, carbon credit units, and measures to secure native community consent.