Malaysia is implementing the National Carbon Market Policy (DPKK) to reduce greenhouse gas emissions and maintain trade competitiveness against regulations like the EU's CBAM. The strategy includes a national carbon registry and a focus on high-integrity credits under the Paris Agreement. The government will introduce a carbon tax in 2026, targeting the energy, iron, and steel sectors. This tax will be complemented by a carbon market to fund high-cost decarbonization technologies, including Carbon Capture, Utilization, and Storage (CCUS) and Battery Energy Storage Systems (BESS).
