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Wednesday, January 14, 2026
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Sarawak to impose carbon levy on oil, gas and energy sectors

Sarawak announces a new carbon levy on oil, gas and energy facilities to fund renewable energy and climate resilience projects from 2026.

KUCHING: Sarawak will introduce a carbon levy on facilities in the oil, gas and energy sectors this year.

Premier Tan Sri Abang Johari Tun Openg (pic) said the proceeds will be channelled into a dedicated Climate Change Fund.

“This is to support renewable energy deployment, energy efficiency, forest conservation, grid modernisation and climate-resilience initiatives,” he said.

He made the announcement during his 2026 Sarawak Premier’s Address, held in conjunction with his ninth anniversary as Premier.

Abang Johari stated that 2026 will be a defining year where preparation must translate into performance.

He emphasised that implementation-ready projects must now move forward decisively.

The Premier added that bottlenecks from overlapping processes or unclear authority must be resolved swiftly.

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