Advocates for the states argue that Sabah and Sarawak are best positioned to manage their own environmental assets, making them the rightful primary recipients of carbon trading revenue. Because these states are directly responsible for the conservation and protection of their rainforests, they incur the operational costs and land-use opportunity costs associated with keeping these areas intact. Allowing the states to retain a larger share of the profits provides a direct incentive for local governments to prioritize sustainable development and forest preservation over industrial exploitation.
Proponents emphasize that this model aligns with the spirit of decentralization, empowering local authorities to fund state-specific social and infrastructure projects. When revenue remains within the state, it can be reinvested into local communities that are most affected by conservation policies. This approach fosters a sense of ownership and accountability, as state governments are directly answerable to their constituents for the success and transparency of their carbon projects.
Furthermore, supporters suggest that state-level management can be more agile and responsive than federal oversight. By tailoring carbon trading frameworks to the specific ecological and economic needs of Sabah and Sarawak, the states can attract specialized investment and develop expertise in the green economy. This regional focus could accelerate Malaysia’s overall progress toward its net-zero targets by creating a competitive and efficient market for carbon credits that rewards high-quality conservation efforts.