MPRC Welcomes Carbon Tax In 2026

KUALA LUMPUR, Oct 11 (Bernama) -- The Malaysia Petroleum Resources Corporation (MPRC) welcomes the upcoming carbon tax in 2026 as a key driver for accelerating decarbonisation, particularly through carbon capture, utilisation and storage (CCUS). 

The Ministry of Economy agency said that introducing a carbon tax for the iron, steel, and energy sectors next year signalled a firm move towards carbon accountability and market-based emissions regulation. 

In anticipation of this, MPRC has begun tracking emissions data from oil and gas services and equipment (OGSE) companies to establish an industry baseline. 

“MPRC’s Greenhouse Gas (GHG) tracking initiative forms part of activities under the Mid-Term Review of the National OGSE Industry Blueprint 2021-2030 (OGSE Blueprint),” it said in a statement today.

Since 2024, MPRC has supported the Ministry of Economy’s Environmental and Natural Resources Division in developing and advocating the government’s CCUS implementation plans.

MPRC president and chief executive officer Mohd Yazid Ja’afar noted that it was encouraging to see the government’s continued commitment to the energy transition through Budget 2026. 

“The announcement of RM150 million for the National Energy Transition Fund alongside the continuation of the Green Technology Financing Scheme are among initiatives which send a clear signal that the government’s energy transition agenda is here to stay and should be seen as a definitive pathway for OGSE companies to seek further value-creating activities,” he added.

Other energy transition initiatives under Budget 2026 include supporting a key OGSE Blueprint initiative and MPRC’s drive to pivot OGSE’s companies towards new growth areas beyond traditional oil and gas support services, for which OGSE companies possess transferable skills. 

MPRC said it has conducted business matching opportunities for Hybrid Hydro Floating Solar, a flagship project of the National Energy Transition Roadmap. 

It added that the government’s emphasis on regional energy integration through the development of the ASEAN Power Grid, as well as the RM2 billion MADANI Undersea Cable Connection across Johor, Sabah, and Sarawak, would also open up new opportunities for OGSE companies to diversify into adjacent energy transition portfolios.

-- BERNAMA