More industries to be impacted by carbon tax in 2026


Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad. — Bernama

KUALA LUMPUR: More industries will be subject to the carbon tax when it goes into effect in 2026.

Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said for now, the steel, iron and energy sectors are the confirmed industries to be impacted by the tax.

“The other likely ones are the cement and oil and gas industries. Discussions are currently ongoing for those that are likely to be affected by the implementation of the carbon tax.

“We will not only look at addressing climate change, but also the impact on the economy and how we can mitigate that,” he told reporters at the sidelines of the “Net Zero Emission 2050: Malaysia’s Current and Future Developments” event yesterday.

Nik Nazmi said his ministry has been engaging with stakeholders to gain more insight into how this might impact them.

“For the tax, the plan is to start on a medium or average scale, just the way other countries are doing. Either way, we want it to be a win-win situation for all.”

He added that Malaysia will band together with other Asean countries to lead the charge in fighting climate change as it seeks to achieve Net Zero Emissions 2050.

Additionally, he noted that the export of renewable energy will be a key focus for Malaysia this year.

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