Malaysia carbon tax still being refined, minister says, with revenue eyed for climate adaptation

Malaysia's Natural Resources and Environmental Sustainability Minister, Arthur Joseph Kurup, said the government is still refining the proposed carbon tax. Speaking at the Malaysia Palm Carbon Conference 2026, he noted the tax will account for industry readiness and the developing policy framework. The tax is not meant to be punitive but to incentivize green technology and cut emissions. Revenue from the tax may go toward climate adaptation projects, forest conservation, and sustainable land management. The minister also indicated the National Climate Change Bill is expected to be tabled in parliament this year, which would strengthen climate governance. Earlier in April, the government signaled the carbon tax, initially planned for 2026 targeting steel, cement, and construction, could be deferred due to energy supply issues and global uncertainties. The timeline remains uncertain, but implementation is still planned.