The Malaysian government will launch a carbon tax in 2026, focusing first on the iron and steel and energy industries as part of its net-zero 2050 commitment.
Revenue from the tax will feed into the National Energy Transition Fund, with RM 150 million (USD 35.5 million) allocated for renewable energy, infrastructure, and industrial decarbonization projects.
Key measures include:
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Boosting renewable energy capacity to 70% by 2050, including 2 GW of new solar under LSS 6.
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Supporting industrial transformation through the NIMP 2030, with over RM 880 million in green financing and incentives.
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Offering tax rebates and accelerated capital allowances for clean technologies.
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Prioritizing the steel industry through energy efficiency, scrap recycling expansion, and renewable integration.
Through these policies, Malaysia aims to transform its steel sector into a competitive, sustainable, low-carbon industry, aligned with its climate goals.
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