KOTA KINABALU: The state government has come out to clarify that the controversial Nature Conservation Agreement (NCA) was still not enforceable as due diligence was still being conducted on the third-party company involved.

       The state Attorney General’s Chambers (AGC), through Attorney General (AG) Datuk Nor Asiah Mohd Yusof said that although the NCA was signed in October last year, it was not yet finalised, nor legally binding.

       She said there were many details still missing, including the designated area involved, an addendum to the NCA be executed where absurd or unfair contract terms were removed and clear safeguards and protections to the state in place.

       She said the NCA, its promoters and affiliates including Hoch Standard Pte Ltd were being scrutinised and unless they all met the requirements of the state, the NCA would not proceed.

       "In short, the NCA in its present form is legally impotent," Nor Asiah said in a statement here Wednesday (Feb 9).

       Other issues that remained unresolved were the Designated Area, pilot area and map, development of a NCA management plan, consent from affected native communities where necessary, carbon pricing and price discovery mechanisms agreeable to the state and the confirmation of the truth and reliability of Hock Standard, she said.

       "Notwithstanding the several representations made by Hoch Standard that they have access to financial networks and are capable of funding and realising the objectives of the NCA, the state government calls for a more in depth due diligence process which was initiated by the State AG," she said.

       Nor Asiah said the state cabinet had approved the concept of carbon trading in principle but the finalisation was subject to strict deliverables and the execution of the addendum.

       She said the Sabah Climate Change Committee (SCAC) and its advisory committee would assess and advise the cabinet on all matters related to the NCA and that the cabinet reserved its rights not to finalise it.

       "SCAC will lead a multi-party dialogue with all stakeholders where representations from across all political factions in Sabah will be called upon," she added.

       Earlier, Nor Asiah stressed that the state government would not permit any land to be leased, transferred or otherwise be 'handed over' as part of any carbon trading or carbon monetising programme.

       She said no carbon trading programme would be agreed to nor implemented without the free prior informed consent of native communities whose customary rights may be impacted by such programmes.

       "Sabah promotes carbon sovereignty as its core policy. Any agreement, scheme, device or arrangement that is contrary to Sabah’s carbon sovereignty, including the proposed NCA, will not be permitted to proceed," she added.

       Nor Asiah said Sabah has a right to carbon sovereignty and would harness and build its own expertise under the SCAC, to manage a carbon future in alignment with recognised global standards, safeguards and processes that prioritise equity, inclusion, transparency and multilateralism.

       The NCA was proposed and managed by Deputy Chief Minister Datuk Seri Jeffrey Kitingan.

       However, it received criticism from various parties including political leaders and environmentalists who said that the project was conducted without prior consent and consultation from the parties involved, such as the villagers themselves.

       The matter had also come to light when a foreign news portal wrote about it last year.

       This NCA, which would first see some 600,000ha of Sabah's totally protected areas used to market carbon and other natural capital by the Singapore-based private company, is set to be in force for the next 100 years, if approved.