Malaysia’s carbon market space has become increasingly vibrant, particularly with the launch of a new carbon market association and feasibility studies being carried out for carbon projects nationwide. But a key voice has been missing from this growing chorus: that of the country’s Indigenous peoples.
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At a recent film screening of Semangat Tinak directed and produced by young Orang Asli or Indigenous Malaysian women, I had the rare opportunity to hear what they had to share. A key theme that stood out from the conversations was how these filmmakers and their communities struggled to have their concerns taken seriously by policymakers and authorities. One example brought up was related to a controversial proposed amendment to Malaysia’s Federal Constitution on Orang Asli matters and another concerned the establishment of a private entity to manage Indigenous affairs in Pahang, Peninsular Malaysia’s largest state. In both instances, the developments were poorly explained to the communities they affect, said the filmmakers.
These issues might not seem immediately relevant to carbon markets but they underscore a fundamental flaw in carbon projects today – of ensuring that the free, prior and informed consent (FPIC) of local communities is secured. It is a topic which has plagued carbon projects globally as well as in Malaysia, as seen in a contentious Sabahan project, where the state government has pushed ahead with a forest carbon pact despite concerns raised by the United Nations. Malaysian carbon trading platform Bursa Carbon Exchange (BCX) was also recently criticised for auctioning renewable energy certificates tied to a large hydropower project in Murum, Sarawak, without securing FPIC from the Indigenous Penan and Kenyah communities before construction began.
Although global industry standards such as Verra’s Verified Carbon Standard and the Gold Standard require FPIC in carbon project development, a recent government-backed report found that Malaysian law and practices surrounding FPIC are riddled with shortcomings.
For instance, Malaysia has yet to integrate the UN Declaration on the Rights of Indigenous People (UNDRIP) into local laws. Currently, only one domestic law requires prior and informed consent from Indigenous and local communities for resources on land they are legally entitled to. A lack of legally binding maps for Indigenous ancestral lands across Malaysia also means that companies can easily circumvent FPIC requirements, found the report.
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Why do we need others to oversee or manage us? We are not animals or beasts; we are part of the Malaysian people.
Diana Tan, lead actress, Semangat Tinak
The report also discovered that in practice, project developers discourage meaningful community participation in stakeholder engagements. Technical data is typically presented in a one-way manner by project representatives, who themselves are ill-equipped to address community concerns on environmental and social impact.
“Common consultation practices do not conform with FPIC principles, and at times, risk escalating conflict,” said the report. Project intermediaries have been found bribing local communities with “gifts and treats” when they were unable to secure FPIC via consultations and have tactically engaged village headmen (tok batin) who are not trusted as impartial advocates for their communities due to political influence.
Eliana Tan, assistant producer of Semangat Tinak, decried such tactics being used in getting consent for the constitutional amendment related to Orang Asli matters, that I have highlighted earlier. The amendment, reported to be tabled by 2027 at its latest, seeks to place Orang Asli matters under the jurisdiction of both the federal and state governments, yet details of the specific amendments are scarce.
Tan spoke about misrepresentations and false portrayals by policymakers that the proposed amendment has the backing of Orang Asli communities. “A certain Member of Parliament issued a statement saying that 90 per cent of Orang Asli communities agree with the amendment. This was completely wrong,” she said, adding that in this instance, only the tok batin and chairman of Jakoa, Malaysia’s federal department of Orang Asli development – a select group of people – were consulted.
When pressed for more evidence of broader community engagement, Tan said the policymaker defiantly said: “I will do it my way.”
Don’t wait for the law, amplify Indigenous voices now
At many of the official carbon forums I attend, these anecdotal examples shared by the Indigenous communities themselves, unfortunately, are hardly heard or relayed.
BCX has taken some welcome steps towards Indigenous inclusion. At the recent Malaysia Carbon Market Forum it organised, the host visibly featured art and craftwork made by the Penan and Kenyah peoples, the same communities impacted by the Murum hydropower project. Participants were given beaded lanyards, while invited guests were presented with specially-made headgear and framed artwork. It was a gesture that at least demonstrated that these communities were not completely forgotten.
But there is room to amplify Indigenous voices further. At the forum, I was wondering: Why not give them a seat on the panel discussions to speak directly about their experiences with FPIC? It is something worth considering for all event organisers in the future who want to feature conversations on carbon projects. For example, Malaysia’s flagship forest carbon project in Kuamut, Sabah, was developed in close collaboration with local communities through community-based organisation Pacos Trust. What lessons might they have for Sarawakian project developers struggling to secure FPIC?
A beaded lanyard, crafted by the Penan and Kenyah tribes of Sarawak, were given to all attendees at the Malaysia Carbon Market Forum. Image: Samantha Ho / Eco-Business
One argument I’ve heard against featuring Indigenous speakers is the language barrier – they largely speak Bahasa Malaysia, the Malay language, or tribal dialects, while English is often the corporate language of choice. This is a superficial hurdle that can be easily solved using live translators, who were present at the Semangat Tinak film screening to help audience members understand what each speaker was sharing.
Some worry that Orang Asli do not understand the technicalities of carbon accounting or market mechanisms. While capacity building can improve their understanding of carbon markets, care must be taken also not to trivialise the wisdom and knowledge of the Indigenous communities, which is grounded on their longstanding and intimate connection with the lands they have ties with.
Carbon market proponents are fond of saying climate action cannot wait, and this is one area they must step up on, even in the absence of laws requiring FPIC. Malaysia’s private sector has proven itself capable of implementing better environmental, social and governance (ESG) practices, often moving ahead of government policies. They can do more to lead the charge and strengthen Indigenous rights if they want to design better carbon projects.
In fact, at the film screening, what stood out to me listening to the young filmmakers and cast members share their thoughts and experiences was that they do not outrightly reject any proposed development of their lands. What they want is to be trusted and empowered to be given full information so that they can make their own decisions.
Semangat Tinak’s lead actress Diana Tan, who is from the Jakun tribe in Pahang, questioned the need for state-backed private firms to manage Indigenous lands and their resources.
“I believe we [as Indigenous Peoples] can manage and care for our own land and forests because we live there and truly understand the land,” she said. “Why do we need others to oversee or manage us? We are not animals or beasts; we are part of the Malaysian people.”
Diana’s words send a clear message: Malaysia’s carbon market must treat Indigenous Peoples not only as Malaysians with an equal right to the benefits of climate action, but as stewards of the country’s carbon-rich ecosystems. Carbon projects would be ineffective at best and counterproductive at their worst if they do not prioritise justice for all.
