KUALA LUMPUR: A carbon tax has been delayed from being rolled out this year pending review against the current geopolitical and economic uncertainties, says Natural Resources and Environmental Sustainability Minister Datuk Arthur Joseph Kurup.
He said the government is committed to introducing the carbon tax to combat climate change’s effects, but that the ongoing Middle East conflict had forced a review in order not to burden the public.
"We'll still implement the carbon tax, it's only a matter of time," he said at the launch of the Weave the Future: 2026 Youth ESG Action KL programme at UCSI University on Thursday (June 18).
"Our original plan was to implement the carbon tax by this year. However, we are very aware of the geopolitical and economic situation now, especially in the Middle East, and we don't want to put an extra burden on our society," he said.
He said revenue from the tax would be used for a National Adaptation Fund to battle the effects of climate change with flood mitigation, coastal management and sustainable agricultural practices.
"The National Adaptation Fund will show where your carbon tax money is going.
"You want to spend money on flood mitigation, coastal management, sustainable agricultural practices, things that will help to contribute to our green agenda," he said
Arthur said the carbon tax would be limited to selected sectors, namely steel, cement and energy.
He also urged the public to view the tax as an incentive to accelerate the transition towards green and renewable energy rather than a penalty.
"If we look at what's going on in the Middle East, where prices of fuel have escalated, it shows that we cannot keep relying on fossil fuels because fossil fuels are ultimately a finite resource.
"That is why we must not slow down our agenda to move towards green and renewable energy," he said.
The programme was organised by the United Nations Institute for Training and Research (UNITAR), Shanghai Climate Week and Prosperity Alliance Shanghai, with UCSI University as co-organiser. The Natural Resources and Environmental Sustainability Ministry and MCA were supporting organisations.
Also present were MCA president Datuk Seri Dr Wee Ka Siong, Tunku Abdul Rahman University of Management and Technology board of governors deputy chairman Datuk Chong Sin Woon, UCSI Group founder and executive chairman Datuk Peter Ng, UCSI Group Sustainability Office vice-president Leong Sat Sing and Shanghai Climate Week representative Zhang Xiaoyi.
Arthur said the government launched the National Carbon Market Policy in April as part of efforts to institutionalise and monetise the country's carbon assets.
He said Malaysia was in a unique position as a carbon sink nation and needed to first measure, report and verify its carbon credits before they could be traded and valued.
"Carbon credits are a new source of wealth for our country, but this can only be monetised if we institutionalise it.
"We first need to measure, report and verify all the carbon credits we have in our country before we can start to trade and value them," he said.
Climate change, he added, was no longer a matter of debate, pointing to rising temperatures and increasingly volatile weather patterns experienced around the world.
" Addressing climate change requires a whole-of-government and whole-of-nation approach, and youths have an important role to play as they would inherit the consequences of today's environmental decisions."
Arthur said Malaysia would continue strengthening regional cooperation on climate action and hoped such efforts could eventually be expanded at the Asean and international levels.
