SARAWAK will introduce a carbon levy on the oil and gas (O&G) and energy sectors starting in 2026.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the levy will apply to emissions granted within Sarawak by regulated facilities in the O&G and energy sectors.
“Revenue collected from this levy will be channeled into a dedicated Climate Change Fund, supporting renewable energy development, energy-efficiency initiatives, grid modernisation, forest conservation and climate-resilience projects that will benefit communities across Sarawak,” he said when tabling the 2026 State Budget, here today.
Abang Johari said Sarawak stands ready to work closely with the federal government to ensure Malaysia’s future national carbon tax and carbon-pricing architecture are harmonised.
“With our Ordinance already in force, established measurement, reporting and verification systems, advanced modelling and detailed policy design underway, Sarawak is well-positioned to support and lead Malaysia’s overall decarbonisation efforts, Nationally Determined Contribution achievement and the development of a strong domestic carbon market.
“Therefore, the carbon levy is also poised to become a future revenue source for Sarawak,” he said.
