Striking the Right Balance: Malaysia’s Minister Calls for More Time to Revamp Climate Change Bill and Update NDC

Malaysia is on a journey to balance economic growth and climate action. Minister Johari, who oversees plantations and commodities, recently highlighted the challenges the country faces in meeting its climate commitments under the Paris Agreement. While striving for global climate goals, Malaysia must consider its status as a developing economy.

At a recent conference, Johari expressed the urgency of updating Malaysia’s climate targets, especially with COP30 approaching. Countries are expected to revisit their Nationally Determined Contributions (NDCs) every five years. However, studies show over 90% of countries missed the deadline this year. As nations like Brazil push for updates, only 62 have submitted their revised targets, covering less than a third of the world’s emissions. Meanwhile, China made a significant move by committing to reduce its emissions for the first time.

In 2021, Malaysia updated its NDC and became part of the Global Methane Pledge, aiming for a 30% reduction in methane emissions by 2030. Johari noted that the country is currently on track to cut carbon intensity by 45% from 2005 levels by 2030. His remarks underline that with a current reduction of 37.1%, Malaysia is making progress, but there’s still a balancing act to ensure targets align with its economic capacities.

Johari highlighted the importance of a new National Carbon Market Policy aimed at introducing carbon pricing. This policy could help Malaysia take a market-based approach to combat climate change.

Last week, Prime Minister Anwar Ibrahim announced plans for a carbon tax targeting hard-to-abate sectors like energy and steel starting in 2026. The details remain limited, but Johari emphasized the need for more engagement with businesses before moving forward. He mentioned the past difficulties of implementing laws without proper understanding among stakeholders, illustrating this with the solid waste management act adopted by only eight states since 2007.

The goal is not just to penalize companies but to ensure sustainability in all aspects of economic development. Johari hopes to table the climate change bill during the first parliament session of 2026, allowing time for these crucial discussions. This bill aims to establish legal requirements for climate-related reporting, which is essential for corporate accountability.

A draft consultation paper on the bill was released last year to gather public feedback. The former minister, who was in office until May, indicated it was close to being finalized.

As Malaysia navigates these challenges, the key will be to blend economic needs with robust climate action, ensuring a sustainable future for both the environment and the economy. To gain more insight into Malaysia’s climate policies, you can explore reports from trusted sources like the International Energy Agency.

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