Section 70B

“carbon credit unit” means a unit of account representing one tonne of Emission Reductions issued by a Carbon Standard pursuant to the applicable Carbon Standard Rules and held in a Carbon

Registry;

“carbon licence” means a licence granted for a Forest Carbon

Activity under section 70A(1);

“Carbon Registry” means an electronic database system or any other system that is established and operated by a Carbon Standard or on their behalf including for the holding, delivery, retirement, cancellation and replacement of carbon credits units in accordance with the applicable Carbon Standard Rules;

“carbon sequestration” means the natural or artificial process

(such as planting trees to absorb carbon dioxide) or pumping carbon dioxide into underground reservoirs to reduce and remove carbon dioxide from the atmosphere and to be held in solid or liquid form, thus preventing greenhouse gas build-up in the earth’s atmosphere;

“carbon sink” means a natural or artificial storage area that collects chemical compounds which contain carbon dioxide and store these for an indefinite period and in its natural form, carbon sinks are made up of forests, rocks and soil and the oceans;

“Carbon Standard” means a program or standard administrated by a mandatory or voluntary domestic or international GHG program, certification, scheme, protocol pursuant to which a Forest Carbon

Activity is formally accepted and registered pursuant to the Carbon

Standard Rules and in respect of which carbon credit units are issued for into a Carbon Registry;

FOREST 49

“Carbon Standard Rules” means all applicable guidance, regulations, rules and procedures of the Carbon Standard (whether made at the direction of the Carbon Standard administrator, a government, a governmental body, regulator, competent authority or otherwise) as modified, amended or supplemented from time to time relating to the rules and requirements relating to the applicable Carbon

Standard, Carbon Registry, registration and issuance process and other

Carbon Standard documents;

“carbon stock or GHG stock” means the quantity of carbon or greenhouse gas (GHG) stored in biological and physical systems including but not limited to trees, products of harvested trees, agricultural crops, plants, wood and paper products and other terrestrial biosphere sinks, soils, seas, and sedimentary and geological sinks;

“carbon trading” means the buying, selling or trading of carbon credits in the voluntary or regulated or compliance markets whether in the international emission trading exchanges, in a carbon trading mechanism established under the Paris Agreement or otherwise in the open market;

“Emissions Reductions” means the removal, limitation, reduction, avoidance, sequestration or mitigation of emissions of

GHG measured in tCO2e from the atmosphere relative to a baseline scenario including by either carbon sequestration or the establishment of carbon sinks or any other activity which are capable of representing and which are capable of being represented in a form of unit of measure pursuant to the Carbon Standard Rules;

“Forest Carbon Activity” means any activity, action, project or groups of activities that lead to the Emission Reductions which are verified in accordance with a Carbon Standard;

“greenhouse gas or GHG” means any of carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride and any other substance recognized as a greenhouse gas under a Carbon Standard;

“Nationally Determined Contribution” means the Nationally

Determined Contribution submitted by Malaysia to the United Nations

Framework Convention on Climate Change in accordance with the

Paris Agreement including any amendment, restatement or replacement thereof;

50 CAP.

“Paris Agreement” means the Paris Agreement to the United

Nations Framework Convention on climate change adopted on 12

December 2015 to which Malaysia is a party including any amendment, any treaty or agreement in replacement thereof;

“Verification” means the periodic independent review and ex-post determination by a Verification Agent of Emission Reductions that have occurred during a relevant period as a result of the Forest

Carbon Activity being carried out in accordance with the Carbon

Standard Rules and “verify” shall be construed accordingly; and

“Verification Agent” means an independent person formally accredited in accordance with the relevant Carbon Standard as qualified to verify Emissions Reductions.

[Add. Cap. A201/2022]