Malaysia: Public consultation on proposed climate changes

in short

Malaysia is expected to establish a comprehensive framework to regulate, implement and enforce actions/initiatives aimed at steering a low-carbon economy. The Department of Natural Resources and Environmental Sustainability (NRES) is leading the development of the proposals for the Climate Change Bill and is publishing a consultation document to solicit views and feedback.

The introduction of the Climate Change Bill is the result of Malaysia’s determination to fulfill its commitments under the Paris Agreement and to reduce Malaysia’s greenhouse gas emissions.

Malaysia currently has no specific legislation addressing climate change. NRES is mandated to spearhead the enactment of legislation that aims to address all issues related to climate change and strengthen Malaysia’s climate change governance at the international and domestic levels.

As part of the process of developing and drafting the Climate Change Bill, NRES is seeking public input and feedback to ensure the legislation comprehensively addresses relevant issues and is proportionate to the outcomes and outcomes.

You can view the full version of the consultation document here.

We summarize the provisions of the proposed Climate Change Bill below.

• Greenhouse Gas Emissions (GHG) Targets

National greenhouse gas emission reduction targets will be set.

• Create new regulatory entity

A regulatory entity will be established to manage, implement and enforce the requirements of the legislation.

• National Integrated Climate Database (NICDR)

NICDR should serve as a comprehensive platform for monitoring, storing, and analyzing climate actions and data.

• Regulation of carbon trading mechanisms

A carbon trading mechanism will be established and matters related to the International Transfer of Mitigation Results (ITMO) will be regulated at the same time. This will also lead to the establishment of a domestic emissions trading scheme (ETS).

A National Climate Fund will be established to support the operations of national climate change initiatives and regulatory entities. The funding sources of the fund include national budget allocations, management fees and registration fees for participating in carbon trading platforms, certification fees for carbon project-related service providers, consulting/consulting/training fees, international financing, and philanthropy.

To comply with Malaysia’s international reporting obligations at the national, sub-national or state and facility levels, it aims to mandate the reporting of greenhouse gas emissions and other data.

• Compliance and Enforcement

The proposed Climate Change Bill aims to incorporate necessary compliance mechanisms to ensure effective implementation. Regulatory entities have the power to impose penalties, including fines and prison sentences.

While we do not expect the Climate Change Bill to apply to most industries and business communities in Malaysia, it is expected to have a huge impact on major industries that emit greenhouse gases, such as electricity, oil and gas, and manufacturing. Businesses subject to the Climate Change Act should take this opportunity to review the Climate Change Act to get a head start on implementing policies to reduce their own greenhouse gas emissions. Interested parties are also encouraged to provide views and comments on the draft Climate Change Bill for consideration by NRES so that the Climate Change Bill is sufficiently robust to ensure that the Government’s objectives are achieved while ensuring that no significant long-term adverse impacts occur. Impact on the economy.

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