Malaysia's National Carbon Market Policy: Preparing for a Future Carbon Tax

Malaysia is establishing the National Carbon Market Policy to build the necessary infrastructure for a future carbon tax and emissions trading system. The government is focusing on creating a robust monitoring, reporting, and verification system and a national carbon registry to ensure credit integrity. While the carbon tax is currently on hold to avoid economic pressure on industries, the policy aims to stimulate the supply of high-integrity domestic carbon credits. This includes the development of the Forest Carbon Offset programme and technology-based standards for methane capture and energy efficiency.