Budget 2022: Voluntary Carbon Market, allocation of RM450 mln, more forest officers as steps for environment care

KUALA LUMPUR, Oct 29 – With Malaysia’s commitment towards being carbon neutral by 2050, in line with UN’s sustainable development goals, several initiatives were announced in the Budget 2022 towards care for the environment and climate change mitigation.

An allocation of RM450 million has been set aside for various ministries responsible for the care of the country’s mega biodiversity and its resources.

Among other initiatives, a Voluntary Carbon Market (VCM) will be launched under the coordination of Bursa Malaysia. The initiative will act as a voluntary platform for the trading of carbon credit among green assets holders and any companies wishing to reduce their carbon footprint, Finance Minister Tengku Zafrul Aziz said when presenting Budget 2022 at the Dewan Rakyat today.

Bank Negara Malaysia will also set aside a RM1 billion fund to help companies wishing to transition to the use of sustainable raw materials or renewable energy business towards low carbon emission.

The government will also promote the use of electric vehicles known for their energy efficiency and lower pollution impact on the environment. To encourage the development of the industry, the government will offer full exemption on sales tax, excise duty and import duty for EVs. It will also offer a 100 percent exemption on road tax for EVs.

A tax rebate of up to RM2,500 will be also given to individuals buying or renting EVs.

Under the RM450 million allocation for the ministries, various programmes will be carried out including the rehabilitation of sites such as the Penang Hill and Tasik Chini.

Additional 1,000 biodiversity officers will be appointed to take care of the country’s forest resources.

Various non governmental organisations involved in the care of the environment also stand to be assisted in their efforts towards the SDGs.