Malaysia’s carbon tax framework will consider GHG emissions scope, pricing, thresholds, and integration with a domestic carbon market and ETS
KUALA LUMPUR: The government is considering several key elements in designing a national carbon tax framework.
The Ministry of Finance said the scope of taxable greenhouse gas emissions, appropriate carbon pricing, and GHG emission thresholds are among the main components under review.
It also emphasised the development of a transparent and efficient monitoring, reporting and verification system for emissions.
“Additionally, integrating the carbon tax mechanism with the domestic carbon market and the potential implementation of an Emissions Trading Scheme is important,” the ministry stated.
This integration aims to provide compliance flexibility and reduce emissions control costs for industry.
The framework is being developed to support Malaysia’s ambition of becoming a regional carbon trading hub.
The MoF confirmed the framework is being aligned with related legislation and policies drafted by the Ministry of Natural Resources and Environmental Sustainability.
These include the forthcoming National Climate Change Bill and the National Carbon Market Policy. – Bernama
