Kuala Lumpur (VNA) – Malaysia is taking decisive steps toward building a low-carbon economy as the National Climate Change Bill (RUU PIN) is expected to be submitted to the Parliament this year.
The announcement was made by Malaysia's Minister of Natural Resources and Environmental Sustainability (NRES) Arthur Joseph Kurup at the Sabah Asia-Pacific Impact Investing for Sustainable Development Summit 2026 held recently.
The minister said once passed, the bill will make Malaysia the second ASEAN country, after the Philippines, to enact a dedicated climate change law, and the 60th country in the world to have a standalone legal framework in this area. The legislation is expected to mark a significant milestone in Malaysia's commitment to the global fight against climate change.
One of the bill's key features is the introduction of a carbon tax, which will take effect once the law comes into force.
However, Arthur stressed that the tax is not intended to punish businesses, but rather to serve as an economic incentive for industries to adopt more sustainable and environmentally friendly practices. All revenue generated from the carbon tax will be channelled into the National Adaptation Fund to support climate resilience projects, including flood mitigation, forest conservation and tree planting.
The bill will also establish a monitoring, reporting and verification system which will serve as the backbone of the country's carbon pricing mechanism. The system will apply a unified methodology for measuring greenhouse gas emissions across all economic sectors, ensuring transparency and the integrity of emissions data while supporting a comprehensive national carbon registry.
In addition, the bill outlines a phased and clearly structured roadmap for implementing carbon pricing before the full deployment of instruments such as carbon taxes and carbon markets, reflecting Malaysia's cautious yet determined approach to tackling climate change./.
