Carbon tax should benefit all

BY NUR HAZIQAH A MALEK / Pic By TMR

With the midterm review of the 11th Malaysia Plan indicating the implementation of carbon tax is coming soon, a study must be held to ensure the tax is imposed sustainably.

Malaysian Green Technology Corp (GreenTech) CEO Dr Mohd Azman Zainul Abidin (picture) said while he is adamant about the implementation of the carbon tax, it is most ideal to enforce it on industries that are emitting the most carbon dioxide (CO2) into the atmosphere.

“The carbon tax is a good thing because it can later be used to subsidise products and services that address climate change issues,” he said last Friday.

He added that the tax should be done in a voluntary manner at first, and once green technology is more widely used, it is to be made mandatory.

“This is not a suggestion, but rather, it feels more idealistic to start small, with a percentage of less than 1%. The higher CO2 emission the industry or company has, the higher the tax percentage they have to pay,” he said.

Mohd Azman said with such a system, smaller companies would not be punished by the sudden implementation of carbon tax.

“Similarly, just because we want to proceed with the usage of a certain technology, we really cannot punish the rest of the country for it.

“It is unfortunate green technology is rather expensive at this moment, but once the government encourages it, hopefully the industry players and the public will pick it up and make it the norm, thus making it cheaper,” he said.

He added that the government can help by making it compulsory to purchase green products. “The Finance Ministry has allocated a mandatory 20% minimum green products and services purchase, which is considered as a start for us. From there, as the percentage increases, industry players will pick it up.”

He added that the Green Technology Financing Scheme 2.0 has been placed on hold.

“Some RM5 billion was intended for this scheme, however, it has been placed on hold for now until further update,” he said.

The Malaysian Reserve previously reported in May the scheme was extended, and provides up to 60% guarantee on the green component cost financed by the participating financial institutions for a particular green project, and 2% yearly rebate on interest or profit.

GreenTech is a an organisation under the purview of the Ministry of Energy, Science, Technology, Environment and Climate Change.

It signed two memoranda of understanding last Friday.

One was with Deutsch Gesellschaft fur Internationale Zusammenarbeit GmbH to undertake training courses on “measurement, reporting and verification for sustainable transport” in Malaysia to mainstream climate protection in transport policies.

GreenTech will be seen implementing green initiatives in the 141.64ha Iskandar Halal Park project, Malaysia’s first integrated halal industrial park.