Carbon Tax Deferment Gives NRES Time To Finalise Regulatory, Policy Framework - Arthur

KUALA LUMPUR, Oct 5 (Bernama) -- The deferment of the carbon tax implementation is aligned with the Natural Resources and Environmental Sustainability Ministry’s efforts to establish a complete regulatory and policy framework before enforcing emission caps.

Minister Datuk Seri Arthur Joseph Kurup said the government decided to delay the tax, originally planned for this year, following global geopolitical developments that led to volatile energy prices, providing affected industries with a necessary buffer.

Speaking during a Concorde Club dialogue session at Wisma Bernama today, he said the postponement is also timely as the ministry works toward solidifying the required legal structure, including the National Carbon Market Policy and the upcoming Climate Change Act.

“(The postponement) is also right because we need to have the proper framework and all that in place first. That’s why we’ve been successful in launching the National Carbon Market Policy and I hope that we can table the Climate Change Act soon.

“Once that is up, then we have the framework and the policies all clearly in place, including the regulation, enforcement, the regulatory powers to give us to set the emission ceiling, and then we can know anything above the ceiling, then the carbon tax will come into place as a penalty to the polluters.

“So, we’re not looking at this year for the carbon tax,” he said.

Meanwhile, on Clean Air Regulations exemption, Arthur said exemptions for industrial plants under the regulation would only be extended to factory operators who demonstrate proactive measures toward technology adoption.

He said while no new blanket extensions are being issued, factory operators whose exemptions expire by January next year must show clear steps toward compliance, with 2030 set as the final deadline for total compliance across all industries.

“We had the Clean Air Regulations, which came into force in 2014, where plants, factories are not allowed to pollute above the 600 milligram per cubic meter...that was the regulation set...however, they’ve been enjoying exemptions up to this year.

“So when I came in as the Minister, I decided that I will not be issuing any more exemptions because the technology is available, the technology is accessible and if we are to meet our target of net zero emissions by 2050, we need to have all this in place and we definitely need the cooperation from the industries as well,” he said.

He added that while operators need adequate time for feasibility studies and modifications, strict progress is required to qualify for temporary extensions.

The session, titled “Building A Resilient Malaysia: Environment, Climate And Our Future”, was moderated by Malaysian National News Agency (Bernama) chairman Datuk Seri Wong Chun Wai.

Also present was Bernama chief executive officer Datin Paduka Nur-ul Afida Kamaludin, as well as members of the local and foreign media based in Malaysia.

-- BERNAMA