The purpose of this slide is to explore the significance of introducing a carbon pricing policy to Malaysia and to evaluate its potential role in supporting the country's efforts towards achieving the Sustainable Development Goals (SDGs) and their corresponding targets. By examining the implications of carbon pricing from an economic, environmental, and social perspective, this assignment will determine how a carbon pricing policy could help Malaysia reach its SDG objectives more effectively and efficiently.

1. Jack Ong Zi Hao
Carbon Pricing Policy
Introduce carbon pricing policy to Malaysia

2. 1. Introduction: Human being vs Climate Change
2. Historical background of Climate Change related Policy
3. Peer comparison between Malaysia and other country on Climate
Change related Policy
4. Carbon Pricing Policy
• What is Carbon Pricing Policy? Why should Malaysia implement
according?
• Challenges of Malaysia on implementation of Carbon Pricing Policy
• How to implement?
5. Relationship between Carbon Pricing and SDGs Targets
Content Index

3. Intro: Relationship between
human-being and climate
change

4. *Calculated based on CO2 emissions per person for Japanese households, 2019 data from the National Institute for Environmental Studies.
Individual CO2 emissions

5. Climate Change: Causes and effect
Image: Retrieved from T-PAT :http://t-plat.deqp.go.th/en/impact_0/2-impact_en_1/

6. 2021-2022
Extreme
weather event

7. 2022 Heatwave and drought in China
The partially dry bed of the Yangtze in Chongqing, central China, on 20 August 2022. The river has hit record-low water levels during this year’s hot, dry summer. (Ima

8. 2022 California wildfires
Photo: Wildfire burning in southwest France on July 19, 2022.

9. 2022 California wildfires
A flooded area in Kuantan, Pahang, a state in Malaysia, during the December 2021 floods. Image: Twitter users @xchipsmore and @thelivingtr

10. Temperature changes from 1850–1900 versus
cumulative CO2 emissions since 1st January 1876
Source: Intergovernmental Panel on climate change (IPCC, 2020)

11. Source: Intergovernmental Panel on climate change (IPCC, 2020)
IPCC: Pull the Emergency Brake on Global CO2 Emissions

12. Historical background on the relevant policy or guidelines
on sustainability and climate change

13. Source: Climate Action Tracker, Climate Watch, World Bank.
Comparison between Malaysia and regional peers of
different initiatives taken with respect to the Paris
Agreement

14. Business as usual: Malaysia would achieve its target to lower GHG intensity
to GDP by 45% by 2030, but doubling the absolute GHG emissions

15. Carbon Pricing Policy

16. Why Carbon Pricing?

17. Image: World Resources Institute
What is Carbon Pricing Policy and how
does it works?

18. Carbon pricing gives producers the option to:

19. Singapore’s Carbon Pricing
1. Singapore current’s carbon tax: SG $5 per tonne.
2. Current carbon tax will remain unchanged until 2023.
3. No additional carbon tax on the use of petrol, diesel and CNG as they already have
excise duties.
4. Households will mainly feel an impact via their utility bills.
5. Support, such as additional GSTV - U-Save rebates, will be announced in 2023

20. Average carbon prices in selected
countries in 2021 (EUR per tonne of CO2)
*Based on taxes applicable on 1 April 2021.
Source:OECD

21. Malaysia has utilised
numerous policies to lower
emissions since 2000s but
these fragmented,
command-and-control
approaches have not led to
systematic decarbonisation
in Malaysia.
1. Climate Change Policy
Barriers and challenges on introduce carbon pricing to
incentivise low-carbon solutions in Malaysia.

22. 2. Carbon Border Adjustment Mechanism (CBAM)
Source: European Commission
Barriers and challenges on introduce carbon pricing to
incentivise low-carbon solutions in Malaysia.

23. 3. Lack of public awareness and
understanding of carbon pricing.
4. Increased costs to end
consumer and outsized impact
on the B40 segment
Barriers and challenges on introduce carbon pricing to
incentivise low-carbon solutions in Malaysia.

24. How government should drive the
climate transition with carbon pricing
together with private sector?

25. How government should drive the climate transition
with carbon pricing together with private sector?
1. Support NGOs to conduct public engagement to
address concerns and build support for carbon pricing.

26. 2. Adopt shadow pricing as in interim solution,
before the introduction of a carbon price in Malaysia.
How government should drive the climate transition
with carbon pricing together with private sector?

27. Billion-dollar weather and climate disasters in the form of hurricanes, severe
storms, drought, flooding, wildfires, winter storms, and freezing have led to
$2.2 trillion in losses since 1980 (NOAA, 2022)
Price tag of climate disasters

28. How Government drive the climate transition
with carbon pricing together with private sector?
3. Adopt practices to track, monitor and report
carbon emissions, in anticipation of the introduction
of carbon pricing.

29. 3. Introduce carbon registry, framework
and legislation on carbon pricing.
How government can drive the climate transition
with carbon pricing together with private sector?

30. 3. Gap analysis and benchmarking.
How government can drive the climate transition
with carbon pricing together with private sector?

31. 4. Reduce existing
market distortions
(Fuel Price Subsidy)
How government can drive the climate transition
with carbon pricing together with private sector?

32. How Government drive the climate transition
with carbon pricing together with private sector?
5. Setup Green Climate Fund to assist and accelerate
the increase efficiency of implement Carbon Pricing
Policy

33. 5. Setup Green Climate Fund to assist and accelerate the
increase efficiency of implement Carbon Pricing Policy
“BNM will provide RM1 billion as a soft
loan under the High and Green
Technology Financing Fund to support
innovative sustainable technology start-
ups and RM1 billion under the Low
Carbon Transition Financing Fund to
help SMEs implement low carbon
practices. “
- Budget 2023 (Malaysia), 2022

34. Goal Targets
Targets 1.5
By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to
climate-related extreme events and other economic, social and environmental shocks and disasters
Target 7.1
By 2030, ensure universal access to affordable, reliable and modern energy services
Target 7.2
By 2030, increase substantially the share of renewable energy in the global energy mix
Target 7.3
By 2030, double the global rate of improvement in energy efficiency
Target 7.a
By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including
renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in
energy infrastructure and clean energy technology
Target 7.b
By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in
developing countries, in particular least developed countries, small island developing States, and land-locked developing
countries, in accordance with their respective programmes of support
Relationship between Carbon Pricing Policy and
SDGs(Targets)

35. Goal Targets
Target 8.4
Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple
economic growth from environmental degradation, in accordance with the 10-Year Framework of Programmes on
Sustainable Consumption and Production, with developed countries taking the lead
Target 8.9
By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and
products
Target 9.4
By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use
efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all
countries taking action in accordance with their respective capabilities
Target 9.5
Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular
developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and
development workers per 1 million people and public and private research and development spending
Relationship between Carbon Pricing Policy and
SDGs(Targets)

36. Goal Targets
Target 11.2
By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety,
notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children,
persons with disabilities and older persons
Target 11.6
By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality
and municipal and other waste management
Target 12.1
Implement the 10-Year Framework of Programmes on Sustainable Consumption and Production Patterns, all countries
taking action, with developed countries taking the lead, taking into account the development and capabilities of developing
countries
Target 12.2
By 2030, achieve the sustainable management and efficient use of natural resources
Target 12.6
Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate
sustainability information into their reporting cycle
Target 12.c
Rationalize inefficient fossil-fuel subsidies that encoufrage wasteful consumption by removing market distortions, in
accordance with national circumstances, including by restructuring taxation and phasing out those harmful subsidies,
where they exist, to reflect their environmental impacts, taking fully into account the specific needs and conditions of
developing countries and minimizing the possible adverse impacts on their development in a manner that protects the
poor and the affected communities
Relationship between Carbon Pricing Policy and
SDGs(Targets)

37. Goal Targets
Target 13.2
Integrate climate change measures into national policies, strategies and planning
Target 13.3
Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation,
impact reduction and early warning
Target 13.a
Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on
Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of
developing countries in the context of meaningful mitigation actions and transparency on implementation and fully
operationalize the Green Climate Fund through its capitalization as soon as possible
Target 13.b
Promote mechanisms for raising capacity for effective climate change-related planning and management in least
developed countries and small island developing States, including focusing on women, youth and local and marginalized
communities
Target 17.1
Strengthen domestic resource mobilization, including through international support to developing countries, to improve
domestic capacity for tax and other revenue collection
Target 17.13
Enhance global macroeconomic stability, including through policy coordination and policy coherence
Target 17.14
Enhance global macroeconomic stability, including through policy coordination and policy coherence
Target 17.15
Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and
sustainable development
Target 17.19
By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement
gross domestic product, and support statistical capacity-building in developing countries
Relationship between Carbon Pricing Policy and
SDGs(Targets)

39. Thank You