Framework on Malaysia’s carbon deal in the offing

The ministry is looking to establish a single entity in all carbon transactions in Malaysia


THE Environment and Water Ministry (KASA) plans to prepare a framework for a carbon deal and is in discussion with Bursa Malaysia to establish a single entity in all carbon transactions in Malaysia.

Minister Datuk Seri Tuan Ibrahim Tuan Man (picture) said any states that want to manage their carbon must go through the federal government or agencies under the ministry.

“Therefore, we want any state government and in the private sector who are interested can discuss and we just encourage,” he said during a press conference after the Low Carbon City Awards.

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He warns that if half of their carbon transactions are caused by outsiders, the minister would have to decline their investment in the United Nations Framework Convention on Climate Change.

The Malaysian Green Technology and Climate Change Corp (MGTC) held the Low Carbon City Awards ceremony yesterday.

The ceremony which was officiated by KASA aims to recognise the efforts of authorities and private organisations in reducing greenhouse gases (GHG) emissions through the Low Carbon Cities 2030 Challenge (LCC2030C) programme.

Strategic cooperation between the federal government, state governments as well as local authorities will be strengthened to ensure low-carbon development policies and programmes in Malaysia will be effective.

Tuan Ibrahim highlighted that a total of 33 areas have been identified under the Low Carbon City Master Plan (LCCMP) to achieve extremely low GHG emissions.

“A total of 70 local authorities have been given exposure to concepts and capacity building through the LCC2030C programme.

“Out of the total, 41 local authorities have been actively involved in implementing the low carbon city initiatives,” he said.

Read more: Tuan Ibrahim: Domestic carbon trading to begin end-2022

KASA has also introduced the Low Carbon City Catalyst Grant (GeRAK) which is worth RM35 million to strengthen the low carbon city initiative and it will be allocated to local authorities throughout the country.

There has been a total of 18 authorities in Kelantan, Terengganu, Sarawak, Perak, Johor and the Federal Territories which have undertaken the low carbon urban projects under the grant.

“The implementation of GeRAK is expected to involve 146 local companies nationwide with a GHG reduction potential of approximately 110,969 tonnes of CO2 equivalent.

“I am pleased to announce that a total of 141 local authorities have received allocations for the implementation of low carbon urban initiatives covering the elements of energy, water, waste, mobility and greenery in public grounds,” the minister said.

The awards include 22 Provisional Certificates for entries that successfully meet the criteria while the 43 Diamond Recognition is given for GHG emission reduction achievements.

On the other hand, one Diamond Recognition is awarded to Gamuda Cove under the design category.

“The total reduction in GHG emissions in 2021 recorded by authorities and partners were 157,923.23 tonnes of CO2 equivalent for low carbon zones.

KASA also commented that they are committed in tackling climate change through initiatives such as maintaining 50% of the nation’s forest, implementing natural solutions to reduce long-term effects, achieve zero waste sent to landfills, increase recycling to 40% by 2025, formulate a National Adaptation Plan, as well as develop domestic carbon trading scheme through collaboration with the Finance Ministry and Bursa Malaysia.

On the other hand, MGTC CEO Shamsul Bahar Mohd Nor said climate change and global warming are the biggest threats society needs to face in this century.

“Beginning with the industrial revolution, human beings have burnt a lot of fossil fuel to produce heat and electricity.

“This activity releases a lot of carbon dioxide which traps heat in the atmosphere and as a result, contributes to global warming,” he explained.