Malaysia is establishing the National Carbon Market Policy to create a foundation for future carbon pricing. While a formal carbon tax is currently on hold due to global economic pressures, the government is prioritizing the development of a National Carbon Registry and a standardized monitoring, reporting, and verification (MRV) system. The strategy focuses on building a supply of high-integrity domestic carbon credits, particularly through nature-based solutions and forest carbon offsets, before implementing mandatory compliance. This approach aims to ensure that industries have access to eligible credits once a carbon tax or emissions trading system is officially launched.
