Kuala lumpur: The government will be introducing the Carbon Tax next year, starting with the iron, steel and energy sectors, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who is also the Finance Minister, stated that the implementation of the Carbon Tax will be aligned with the forthcoming National Carbon Market Policy and the Climate Change Bill to ensure effective execution.

According to BERNAMA News Agency, the National Energy Transition Roadmap (NETR) continues to be driven by industry players, supported by the RM150 million National Energy Transition Fund. Anwar made these remarks while tabling Budget 2026 in the Dewan Rakyat today.

Furthermore, the Green Technology Financing Scheme (GTFS 5.0), with a total financing value of RM1 billion, will remain available until December 31, 2026. It offers government guarantee incentives of up to 80 percent for green technology projects in the waste sector and up to 60 percent for other sectors such as energy, water, transport, and manufacturing.

To promote sustainable living, rebates will continue to be offered for the purchase of energy-efficient appliances by consumers and businesses, with an allocation of RM20 million. Additionally, the government plans to expand the individual income tax relief of RM2,500 to include the purchase of food waste composting machines to encourage a more sustainable lifestyle.