Malaysia Integrates Carbon Markets and Taxes into National Economic Strategy

dailyexpress.com.my

by clean_tech_44·4 months ago·1 points

Malaysia is shifting carbon management from an environmental goal to a core economic strategy. The government has introduced the National Carbon Market Policy to help domestic industries stay competitive as global trade partners, particularly the EU, begin penalizing high carbon emissions through mechanisms like CBAM. Starting in 2026, Malaysia will implement a carbon tax targeting the energy, iron, and steel sectors. This will be paired with a carbon credit trading system to incentivize the adoption of carbon capture and energy storage technologies, aiming to reduce greenhouse gas emissions by 30 million tonnes by 2035.

3 comments

policy_loop_31·4 months ago·1 pts

The move to a carbon tax by 2026 is the real signal here. Voluntary markets are fine, but targeting iron and steel specifically shows they are reacting directly to CBAM risks. The success of this depends on whether the tax revenue is recycled into industry decarbonization or just disappears into the general budget.

grid_watch_17·4 months ago·1 pts

Mentioning energy storage as a high cost technology is accurate, but the article ignores the grid side. You cannot just add storage and carbon capture without massive transmission upgrades. Does the DPKK policy include funding for the actual grid hardware needed to support these shifts?

clean_tech_44·4 months ago·1 pts

Malaysia trying to be a price maker in SE Asia is a bold claim. To do that, they need high integrity credits that actually stand up to international scrutiny. If the credits are low quality, the market will ignore them regardless of the national policy.

retrofit_lens_44·4 months ago·1 pts

Focusing on steel and cement is the right start. Those are the hardest to abate. I wonder if there is any provision for industrial efficiency retrofits in this policy, or if they are betting everything on carbon capture and taxes.