Malaysia plans carbon pricing and green steel investments

He highlighted that the revenue generated from these measures should be invested in green initiatives, such as green steel.

Liew also noted that the EU will introduce a Carbon Border Adjustment Mechanism (CBAM) in 2026, which will impose taxes on steel and other exports from Malaysia unless the country collects the tax itself.

In addressing the scrap metal challenge, Liew emphasized the Ministry's commitment to finding solutions for shortages and enhancing the ecosystem. He pointed out that Malaysia's crude steel production capacity utilization rate was 39.1% in 2023, significantly lower than the global average of 75.7% and the ASEAN-6 average of 60.1%.