November-December. 2025 | @ green

According to Prof Dr Shaufique Fahmi Ahmad Sidique of Universiti Putra Malaysia, the tax served not merely as a fiscal tool but as a marketbased mechanism to reflect the actual cost of pollution.

He explained that every product generated by-products, such as waste and emissions, yet environmental costs had never been incorporated into market pricing.

“ Carbon tax closes that gap so that those who pollute must pay,” he said.

By imposing a cost on carbon emissions, firms would be pushed to adopt cleaner and more efficient technologies. High-polluting producers would face higher taxes, making their products less competitive and ultimately altering production and consumption patterns.

Revenue collected through the tax could support environmental programmes, renewable energy development, green technology investment and assistance for vulnerable groups

THE Perak government reaffirmed its commitment to ensuring that renewable energy development brings maximum benefits to its people, from lower energy costs to stronger economic opportunities and long-term environmental well-being.

According to Environment and Green Technology executive committee member Teh Kok Lim, Perak currently hosts 28 Large-Scale Solar( LSS) projects in operation or development, with a combined capacity of 1,441.3 megawatts. This places the state among the largest contributors to solar capacity in Peninsular Malaysia.

He said that Perbadanan Kemajuan Negeri Perak, together with its strategic partner KAB Energy Holdings Sdn Bhd, had secured two small hydroelectric projects under the Feed-in Tariff 2.0 Scheme.

These projects, located at Sungai Pulau in Hulu Perak and Sungai Woh in Batang Padang, involve a total investment of RM102.32 million and are expected to become key drivers of Perak’ s renewable energy agenda.

Responding to a question during the State Assembly, Teh said the growing solar and hydro capacity would help reduce long-term electricity generation costs. Consumers were also encouraged to adopt rooftop solar systems through TNB and the National Energy Transition Roadmap initiatives to enjoy greater savings.

He noted that clean energy development under Perak Sejahtera 2030 reduces reliance on coal and gas, lowers carbon emissions, and enhances environmental quality.

Solar farms, mini-hydro and biogas projects have also created jobs in construction, operations and maintenance, while supporting local entrepreneurs through service and equipment supply opportunities.

Teh added that floating solar projects preserve agricultural land, and hybrid solar-hydro systems strengthen

affected by cost adjustments.

This approach strengthened Malaysia’ s low-carbon ambitions while aligning with global ESG expectations.

Prof. Shaufique added that higher energy prices resulting from the tax would naturally encourage behavioural change. Consumers would be more mindful of electricity use, invest in efficient appliances and shift towards renewable options such as solar power.

However, he stressed that the policy must balance enforcement with incentives. Financial support or special financing rates for companies adopting renewable energy would reward sustainable choices rather than merely penalising polluters.

Sustainability, he emphasised, was a shared responsibility.

“ If we pollute, we must pay. Throwing waste irresponsibly only shifts the burden to others,” he said. More substantial waste, recycling and energy-use policies were needed to instil accountability.

He concluded that carbon tax should be viewed not as a burden but as an investment in a cleaner, fairer future- positioning Malaysia as both competitive and ethical in the global green economy.

grid reliability. Local communities benefit from training, skills development, and the potential for eco-tourism arising from these renewable energy projects.

JOHOR is set to become a regional clean energy powerhouse through the Southern Johor Renewable Energy Corridor( SJREC), a landmark US $ 6 billion( RM24.83 billion) initiative developed in partnership with the World Bank Group and Ditrolic Energy.

The collaboration was formalised with a letter of agreement signed by the International Finance Corporation, Permodalan Darul Ta ' zim and Ditrolic Energy, witnessed by the Queen of Malaysia Raja Zarith Sofiah.

The agreement coincided with the launch of the Johor Renewable Energy Policy 2030, which outlines joint efforts in project development, technical support and financing.

Covering 2,000 sq km, the SJREC will anchor the Johor-Singapore Special Economic Zone and feature a hybrid solar and battery energy storage system. Its first phase is set to deliver up to 4GWp of solar capacity and 5.12GWh of storage across 10,000 acres, supplying clean power to local and multinational companies, including hyperscale data centres and manufacturers.

With cross-border transmission capability, the corridor will also export renewable electricity to Singapore, contributing to the ASEAN Power Grid( APG) vision of an interconnected regional energy network by 2045.

PDT president and group chief executive Datuk Ramlee A Rahman said the project demonstrated Johor’ s readiness to serve as a key renewable energy hub for the APG, enabling both the JS-SEZ and future energy trading.

Judith Green, World Bank Group country manager for Malaysia, said the corridor would support Johor’ s sustainable development goals, attract high-value foreign investment and drive significant employment.

The SJREC is expected to generate about 125,000 jobs throughout construction, operations and maintenance, solidifying Johor’ s position as a leading industrial and digital hub in Southeast Asia. – @ green

ROYAL BRIEFING: Her Majesty Raja Zarith Sofiah, Queen of Malaysia, being briefed on the SJREC Masterplan by Ditrolic Energy Group CEO Mr Tham Chee Aun. Photo credit: International Finance Corporation( IFC).