Malaysia refines carbon tax plan, considers timing and revenue use for climate projects

Malaysia's Natural Resources and Environmental Sustainability Minister, Datuk Seri Arthur Joseph Kurup, stated that the government is still refining the proposed carbon tax implementation. The tax, initially planned for 2026 and targeting steel, cement, and construction sectors, may be deferred due to global uncertainties and energy supply issues. The minister emphasized the tax is not punitive but an incentive for green technology adoption. The government is also studying how to use carbon tax revenue, with proposals to fund climate adaptation projects, forest conservation, and sustainable land management. Separately, the National Climate Change Bill is expected to be tabled in parliament this year, aimed at strengthening climate governance in Malaysia.