REDUCING CARBON EMISSION THROUGH CARBON TAX POLICY IN MALAYSIA

Abstract

In accordance with the objective outlined in the 2016 Paris Agreement, there is a requirement to lower carbon dioxide (CO2) and other greenhouse gas emissions by a quarter by the year 2030. Climate policy packages that induce dramatic changes in production and consumption patterns will be required to achieve this. Despite the fact that many developed countries are proclaiming emission neutrality objectives by 2030, present practices are incompatible with these long-term ambitions. As a result, significantly stronger policy action is required. As we approach 2021, Malaysia has less than a decade to fulfill the global goal of halving carbon dioxide emissions by 2030. In the worldwide Climate Change Performance Index, Malaysia is near the bottom. To advance the sustainability objectives and address climate change concerns, Malaysia is contemplating the implementation of a carbon tax for upcoming investments. These adjustments, on the other hand, are dependent on legislators' knowledge and public demand. Hence, this study looks at how carbon tax policies were implemented in both successful and unsuccessful countries. The purpose of the study is to introduce the carbon tax policy in Malaysia. This study used secondary data to collect information on looking at the challenges and benefits of implementing a carbon tax. The finding from this study concludes that establishing a carbon tax policy has more economic and environmental benefits if the country has well-designed carbon pricing that influences consumer, business, and investor behavior while also stimulating technological innovation and earning revenue. The study recommends the government how to implement a carbon price policy framework while revising the Environmental Protection Act.