CARBON TAX REFLECTS GOVT’S COMMITMENT TO TACKLING CLIMATE CHANGE

By Nur Aimidiyana Zuher

KUALA LUMPUR, Oct 14 (Bernama) -- The implementation of the carbon tax, set to begin next year, demonstrates the government’s firm commitment to addressing climate change in a sustainable and holistic way, reinforcing the nation’s transition towards a green economy.

Climatologist Prof Dr Fredolin Tangang said the initiative is in line with Malaysia’s target of reducing greenhouse gas (GHG) emission intensity by 45 per cent by 2030, in accordance with its international commitments.

“To date, more than 40 countries have implemented a carbon tax mechanism. Malaysia appears to be on the right track with the introduction of policies such as the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan 2030 (NIMP 2030),” he told Bernama.

When tabling Budget 2026 last week, Prime Minister Datuk Seri Anwar Ibrahim announced that the government will be introducing the tax starting with the iron, steel and energy sectors.

To ensure the efficient implementation of the carbon tax, he said its mechanism would be aligned with the forthcoming National Carbon Market Policy and the National Climate Change Bill.

Meanwhile, Global Environment Centre (GEC) River Care Programme manager Dr K. Kalithasan said the carbon tax would help sustain environmental conservation efforts, in line with previous green initiatives such as combating uncontrolled logging to protect the nation’s forest ecosystems.

“The protection of our natural heritage is crucial not only now but also for the future, and this requires substantial funding.

“We support this initiative and hope it will be implemented consistently and comprehensively, as it affects not only the environment but also human life,” he said.

Universiti Tun Hussien Onn Malaysia (UTHM) Bachelor of Science (Biodiversity and Conservation) programme head Dr Aqilah Awg Abdul Rahman said the tax would encourage industries such as energy, iron and steel to act more responsibly and accelerate innovation in green or sustainable energy solutions.

She said it is important for the government to develop a sound regulatory mechanism to address concerns about potential price pressures on raw materials arising from the carbon tax’s introduction.

On the government’s allocation of RM630 million for the protection of the nation’s natural heritage, Universiti Putra Malaysia (UPM) Faculty of Forestry and Environment senior lecturer Dr Siti Nurhidayu Abu Bakar said it demonstrates the government’s recognition of nature as a key source of ecosystem stability.

“This significant allocation indicates that the government views environmental protection not merely as a cost but as a long-term investment in quality of life, disaster mitigation and water resources,” she said.

Sharing a similar view, Organisation for the Preservation of Natural Heritage Malaysia president N. Rajesh said environmental protection must also be integrated with other development policies such as agriculture, industry and urban planning to avoid conflicts with the nation’s economic agenda.

The World Wide Fund for Nature (WWF-Malaysia) said in a statement that while it welcomes the inclusion of green initiatives and Malaysia’s reaffirmed commitment to introducing a carbon tax, concerns remain over how nature and climate considerations are being integrated into broader development planning.

“This is especially relevant in the context of rare earth elements mining and tourism projects in ecologically sensitive areas, including UNESCO sites. To prevent environmental degradation, it is crucial to implement stronger safeguards, ensure strict compliance, and enforce robust regulatory mechanisms,” it said.

-- BERNAMA