CEO: Government should consider carbon tax to drive clean energy

KUALA LUMPUR: The government should consider imposing carbon tax on development projects in the future to drive clean energy and green technology.

Malaysia Green Technology Corp group chief executive officer Dr Mohd Azman Zainul Abidin said if the tax is implemented, it should be less than 1% of the total revenue from the projects.

“The amount of tax to be paid to the government will depend on the project's carbon emission so that small players would not be too affected by the tax.

“This will also help to reduce carbon footprint in the country,” he said in a press conference here yesterday after exchanging memoranda of understanding with Germany's Deutsche Gesellschaft Internationale Zusammenarbeit and Iskandar Halal Park.

He noted that companies could pass on the tax burden to consumers or implement various initiatives to reduce it by conducting activities such as recycling and using green energy sources like solar.

“However, the government must engage with the stakeholders and review the policies before implementing such tax.

“Should the tax be implemented, it could subsidise green technology, especially in producing clean energy,” he said.