PETALING JAYA: The proposed National Climate Change Bill (RUU PIN) will provide a comprehensive legal framework balancing both climate mitigation and adaptation, the Natural Resources and Environmental Sustainability Ministry said on Thursday (Sept 10).
Responding to recent feedback calling for greater priority on climate adaptation, the ministry, in a statement, clarified that the upcoming bill is designed to function within an interconnected governance ecosystem rather than as a standalone policy.
It said that the legislation will complement, not replace, existing government policies, action plans, and strategies, with adaptation forming a core part of its statutory action framework.
It said that under the proposed law, a climate risk and vulnerability-based approach will be introduced to systematically identify and manage risks across various sectors.
The ministry said these efforts will feed into the National Adaptation Plan (MyNAP) to strengthen Malaysia's resilience against severe weather, flooding, rising sea levels, and coastal erosion. Additionally, the bill will establish a dedicated Climate Change Fund to support financial commitments for both adaptation initiatives and carbon reduction measures.
The ministry emphasised that mitigation and adaptation must be pursued simultaneously. While adaptation protects communities, infrastructure, and ecosystems from immediate climate threats, robust mitigation efforts are essential to maintain economic competitiveness.
It added that clear legal mechanisms for emissions reporting and carbon market development will ensure local industries adapt to global standards while continuing to attract high-quality investments.
Given that climate impacts cut across multiple sectors, the ministry underscored the need for seamless coordination among federal, state, and local authorities, as well as private sector stakeholders and civil society, to successfully translate national policies into effective action on the ground.
Speaking to reporters while officiating at the International Sustainability Week in Kuala Lumpur, Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup said the ministry is currently engaging the states – especially Sabah and Sarawak – and he hoped to introduce the Bill to Parliament as soon as possible once an agreement is reached.
Elaborating, he revealed that revenue is an issue of concern.
“The Sarawak premier has mentioned before that because it is the custodian of the forests, it is entitled to most of the revenue.
“For us, we think of revenue in terms of carbon credit, but not carbon tax,” the minister said.
There is a difference between carbon credit and carbon tax, he added.
“Carbon tax is where we penalise the polluters, and most of the polluters are here in the peninsula, where the industrial areas are. Carbon credits are produced by the forests and most of the forests are in Sabah and Sarawak.
“So for carbon credits, yes, maybe we can negotiate how states with more forest reserves get more of the carbon credits, but carbon tax, I think, has to (stay) with the federal government, under the Finance Ministry,” Kurup said.
The minister added that he would like to see carbon tax being collected into a national adaptation fund, which can only be used for climate change projects such as forest replanting, flood mitigation and green buildings.
Kurup added that the government needs to push through the Climate Change Bill because Malaysia is at an advantage to reap the financial benefits.
The government had launched the National Carbon Market Policy, which sets the framework for carbon trading, earlier in April, and it needs the legislation for enforceability.
“We can’t do that unless we have the Bill passed, and only after that we can look at carbon tax,” he said.
Malaysia’s vast forest cover, which accounts for about 54% of the country’s land area and is concentrated largely in the East Malaysian states, serves as a carbon sink, he added.
Carbon credits can be a new source of revenue, but it cannot be realised until the government institutionalises the framework through the Climate Change Bill, the minister said.
