Carbon Tax Reflects Govt’s Commitment To Tackling Climate Change

Kuala lumpur: 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 emphasized that this initiative aligns with Malaysia's goal of reducing greenhouse gas emission intensity by 45 percent by 2030, in line with international commitments.

According to BERNAMA News Agency, more than 40 countries have already implemented a carbon tax mechanism. Malaysia is on the right track with policies like the National Energy Transition Roadmap and the New Industrial Master Plan 2030. Prime Minister Datuk Seri Anwar Ibrahim, while tabling Budget 2026 last week, announced that the government will introduce the tax beginning with the iron, steel, and energy sectors. The tax's implementation will align with the forthcoming National Carbon Market Policy and the National Climate Change Bill.

Dr. K. Kalithasan, Global Environment Centre River Care Programme manager, noted that the carbon tax would sustain environmental conservation efforts, complementing green initiatives like combating uncontrolled logging to protect forest ecosystems. He stressed the importance of substantial funding for the protection of natural heritage, impacting both the environment and human life.

Dr. Aqilah Awg Abdul Rahman of Universiti Tun Hussein Onn Malaysia highlighted that the tax would encourage responsible actions and innovation in industries such as energy, iron, and steel. She underscored the necessity for a sound regulatory mechanism to address potential price pressures on raw materials due to the tax's introduction.

Dr. Siti Nurhidayu Abu Bakar from Universiti Putra Malaysia remarked on the government's RM630 million allocation for protecting natural heritage, indicating a recognition of nature as a key source of ecosystem stability. She described this allocation as a long-term investment in quality of life, disaster mitigation, and water resources.

N. Rajesh, president of the Organisation for the Preservation of Natural Heritage Malaysia, shared a similar view, advocating for the integration of environmental protection with other development policies to prevent conflicts with the economic agenda.

The World Wide Fund for Nature (WWF-Malaysia) expressed concerns about the integration of nature and climate considerations into broader development planning, especially regarding rare earth elements mining and tourism projects in ecologically sensitive areas. They urged for stronger safeguards, strict compliance, and robust regulatory mechanisms to prevent environmental degradation.