Malaysia to sell BioDiversity Credits

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Malaysia to sell biodiversity credits

By MUGUNTAN VANAR

KOTA KINABALU: Malaysia is setting up of a Wildlife Habitat Conservation Bank as part of its move to sell biodiversity credits.

The setting up of the bank, the first its kind outside the United States, is part of the arrangement between Sabah and an Australian company to jointly develop a commercial wildlife habitat at the 240,000ha Malua Forest Reserve.

The state, through the Sabah Forestry Department and Yayasan Sabah, will work with the Sydney-based New Forests Pty Limited to set up a commercially operated conservation bank in six months.

New Forests managing director David Brand explained that the bank's concept of selling biodiversity credits was like selling shares to stakeholders or others who were keen to “invest” in conservation.

The money raised would be used then be used for conservation purposes, which in this case, would be the Malua forest reserve.

He said that such credits could in the future be traded at stock exchanges.

Brand added that in the United States, housing developers and others were required by law to buy these credits.

Chief Minister Datuk Musa Aman said this new approach would greatly help bring in private investment in conservation of natural forests, which involved high costs.

"I believe this will provide a commercial solution for private investments to support conservation through biodiversity credits,” Musa said.

He said this after witnessing the MOU signing ceremony held in conjunction with the international conference on Nature Conservation in Sabah: The Quest for Gold Standards here on Monday.

Musa said all quarters including those from the oil palm as well as the oil and gas industry should check with New Forests to find ways to purchase credits from the proposed Conservation Bank.

Sabah Forestry director Datuk Sam Mannan said although Malaysia or Sabah did not have regulations requiring the purchase of such credits, the department could impose it through contracts with oil palm companies when then opened up new areas.

The Monday event also saw the department launching a conservation fund aimed at restoration of forest and biodiversity in the state.