GHG Emissions, Emission Threshold, Carbon Pricing Among Main Elements of Carbon Tax Framework -- MOF

KUALA LUMPUR, Dec 9 (Bernama) -- The Malaysian government is considering the scope of taxable greenhouse gas (GHG) emissions, appropriate carbon pricing, and GHG emission thresholds among the main elements in designing a carbon tax framework, the Ministry of Finance (MoF) said.

In a written reply posted on the Parliament website on Tuesday, the ministry said attention is also being given to developing a monitoring and reporting (MRV) system for emissions that is transparent, efficient and trusted by industry and investors.

“Additionally, integrating the carbon tax mechanism with the domestic carbon market and the potential implementation of an Emissions Trading Scheme (ETS) is important to provide compliance flexibility and reduce the cost of emissions control for industry,” it said.

The ministry was responding to Senator Wu Him Ven regarding the carbon tax framework that the MoF is developing to make Malaysia a regional carbon trading hub.

The MoF also noted that the carbon tax framework under development is being aligned with related legislation and policies being drafted by the Ministry of Natural Resources and Environmental Sustainability.

“These policies include the National Climate Change Bill and the National Carbon Market Policy,” it added.

-- BERNAMA