Budget 2026: DOPPA Advocates Carbon Trading For Sustainable Income In Rural Communities

KUALA LUMPUR, Oct 8 (Bernama) -- The Sarawak Dayak Oil Palm Planters Association (DOPPA) is calling for a groundbreaking initiative that integrates carbon trading to provide a stable income for rural communities in Sarawak. 

Its president, Dr Napolean R Ningkos said that with approximately 1.7 million hectares of Native Customary Rights (NCR) land featuring significant forest cover, there is strong potential for these areas to make a substantial contribution to environmental conservation and community welfare.

"In alignment with the national No Deforestation, No Peat, No Exploitation (NDPE) policy, DOPPA also urges the government to implement a mechanism that compensates landowners for preserving their forested NCR lands. 

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"This initiative would not only support national environmental goals but also ensure that smallholders receive a sustainable income without resorting to expanding oil palm cultivation," he said in a statement to Bernama.

Napolean said DOPPA strongly believes that the successful implementation of the NDPE policy in Sarawak hinges on improving the livelihoods of indigenous peoples; and by adopting carbon trading, these communities can benefit economically while also playing a crucial role in forest conservation efforts.

As such, the association has called on the government to prioritise the development of a carbon trading framework that compensates landowners for maintaining their forested areas. 

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This innovative approach promises to balance economic development with environmental conservation, ensuring a sustainable future for Sarawak's rural communities.

"DOPPA looks forward to the government’s consideration of these proposals in the upcoming Budget 2026 and anticipates positive changes that will benefit Sarawak’s independent smallholders and the broader agricultural community," said Napolean.

Meanwhile, DOPPA also emphasised the need for a more effective replanting incentive scheme in Sarawak, highlighting that less than one per cent of the 48,000 independent smallholders in Sarawak have succeeded in their application to participate in the scheme.

The association attributes this to the cumbersome bureaucratic processes, particularly the verification of land applications by the Department of Land and Survey, Sarawak, which often requires an extended time period to complete all necessary checks.

He explained that the current scheme demands land title or status verification, thus delaying the approval process. 

"This verification is necessary due to the matching grant requirement from both the federal government and Agrobank, amounting to RM18,000 per hectare for Sarawak.

“However, due to these bureaucratic hurdles, many oil palm smallholders are denied access, undermining the programme’s objectives," he said, adding that the federal government should introduce more flexible procedures. 

The association also proposed that the government introduce a grant of RM9,000 per hectare as an incentive for smallholders who have completed their replanting, as this initiative could significantly alleviate development costs for independent smallholders.

DOPPA also recommends that this grant be channelled through the Ministry of Food Industry, Commodity and Regional Development Sarawak (MFicord) or MPOB Sarawak Regional, to ensure proper distribution to eligible smallholders.

In its Budget 2026 wishlist, DOPPA also calls upon the government to collaborate closely with non-governmental organisations (NGOs) and local government agencies to ensure that funding reaches those most in need.

Napolean said DOPPA remains committed to assisting in this effort, adding that it is prepared to provide support to ensure that resources are allocated efficiently and effectively to the targeted groups.

-- BERNAMA