Malaysia will soon begin carbon pricing to facilitate carbon trading and explore carbon tax, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.
“The European Union will implement a carbon border adjustment mechanism in 2026. Carbon pricing, trading, and taxation are critical aspects of the decarbonisation agenda. Under CBAM, the export of steel and other listed items from Malaysia will be taxed by the European Union unless Malaysia collects the tax,” Liew stated at the launch of the Malaysian Iron and Steel Industry Federation’s 15th report on the status and outlook of the Malaysian iron and steel industry today.
Liew highlighted the concerning utilisation rate of Malaysia’s crude steel production capacity, which stood at 39.1% in 2023. This is significantly lower than the global average of 75.7% and the Asean-6 average of 60.1%. Misif president Datuk Lim Hong Thye said the federation understands the necessity of aligning with the government’s aspirations to achieve net-zero carbon emissions by 2050.