Sarawak Premier Tan Sri Abang Johari Tun Openg has announced that the state will implement a carbon levy targeting facilities in the oil, gas, and energy sectors this year, as part of its ongoing efforts to address climate change and promote sustainable development. The levy is expected to generate funds that will be directed into a dedicated Climate Change Fund, which will support a range of environmental and sustainability initiatives.
Sarawak Premier Tan Sri Abang Johari Tun Openg.
“The proceeds from this levy will be channelled towards renewable energy deployment, improving energy efficiency, forest conservation, grid modernisation, and initiatives aimed at enhancing climate resilience,” Abang Johari said during his 2026 Sarawak Premier’s Address on Tuesday. The ceremony also marked the ninth anniversary of his tenure as Sarawak’s Premier.
He emphasised that 2026 represents a pivotal year for the state, describing it as a period where careful planning must now translate into concrete action. “Over the past few years, Sarawak has established the strategies, institutions, and financing mechanisms required to ensure sustainable, long-term development. This year, those foundations must deliver visible, measurable outcomes. Projects that are ready for implementation must proceed decisively,” he said.
Abang Johari also highlighted the need to address bureaucratic bottlenecks that could hinder progress. He stressed that overlapping processes, unclear authorities, and excessive risk aversion must be resolved quickly to ensure projects move forward efficiently.
“The carbon levy is part of a broader effort to align Sarawak’s development with global climate goals while also supporting the state’s energy transition. By creating a dedicated fund, we can invest strategically in clean energy, sustainable infrastructure, and environmental preservation, ensuring Sarawak remains competitive while protecting its natural resources for future generations,” he added.
This initiative signals Sarawak’s commitment to becoming a leader in sustainability and climate-conscious development, particularly in the energy-intensive sectors of oil, gas, and power generation, where the state has significant economic activity. The levy will serve as both a regulatory mechanism and a financial tool to drive investments in green technology and infrastructure across Sarawak.
