Executive Summary Asserting Climate Change Leadership in ASEAN: Carbon Pricing for the Malaysian Steel Industry The energy system is the biggest contributor to man-made greenhouse gas emissions (GHG) and de In recent years, Malaysia has attracted significant investment in its steel sector. [...] A study on the impact of carbon pricing in Malaysia is currently being carried out with the support from the World Bank and will likely be released sometime in 2025. [...] Due to the urgency of this issue, this report aims to: a) understand current trends and future drivers of investment and GHG emissions in the Malaysian steel industry; b) examine the needs of carbon pricing for the manufacturing sector and the steel sub-sector specifically and the available types of carbon pricing that are feasible to be implemented in the Malaysian context, including a Carbon Bor. [...] Thirdly, the study emphasised that the key market mechanisms to curb emissions rely either on setting a price for carbon and allowing the total emissions to vary, or establishing the total quantity of emissions, and letting the price fluctuate according to transactions between economic actors. [...] Lastly, based on the examination of the pros and cons of the carbon tax and the cap-and-trade models, coupled with the examination of existing policies implemented by the ASEAN peers and the international community, the authors propose a timeline and a step-by-step implementation plan for carbon pricing measures for the local steel industry.
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- Published in
- Malaysia
