MITI: Study on carbon pricing instrument to be completed next year

MITI: Study on carbon pricing instrument to be completed next year

02 Nov 2023

Malaysia’s carbon pricing instrument study, led by the World Bank and Impact Malaysia, is expected to be completed in 2024.

The outcome will help the government to decide whether to impose a carbon tax or establish an emissions trading scheme, said Shireen Jasmin Ali, director of industry Environmental, Social and Governance (i-ESG) division at the Ministry of Investment, Trade and Industry.

Early this year, the Ministry of Finance (MOF) said that the government has no plans to implement a carbon tax in the near future.

However, the MOF said that there might be a need for it in the long run and it would study its feasibility as one of the ways to support the nation’s goal of reducing greenhouse gas (GHG) emissions.

On top of that, Shireen Jasmin said the study on GHG emissions reduction in the manufacturing sub-sectors will also be completed next year.

“Under the national i-ESG Framework objective, the government is looking at enhancing sustainable practices in the manufacturing sector, with a clear, consistent and coherent guideline for industries in transitioning towards ESG compliance practices,” she said during a panel discussion at the Malaysian Iron and Steel Industry Federation Trade Forum here on Thursday.

The government is also assessing and assisting companies, especially small and medium enterprises’ readiness to embrace ESG principles.

Source: Bernama