News / #carbon tax
The country is expected to leverage its Asean presidency to drive cooperation in the regional carbon markets. At home, Malaysia is looking to drive down emissions through a climate bill, energy sector reform and fuel subsidy cuts.
Developing the credit markets will address a funding gap for nature-based solutions, said Tharman Shanmugaratnam. His proposal faced pushback from other panellists at the World Economic Forum who cautioned against commodifying nature.
Those who responded to a public consultation called for the carbon levy not to be eroded by allowances and for more transparency. Last year, petrochemical firms reportedly received up to 76 per cent in rebates for near-term carbon taxes.
The European Union (EU) ’s Carbon Border Adjustment Mechanism (CBAM) imposes significant costs on countries with high carbon emission intensity and substantial export dependence.
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