National Climate Change Bill unveils MRV system, basis for carbon price implementation

KUALA LUMPUR (March 13): The National Climate Change Bill (RUU PIN) will introduce a monitoring, reporting and verification (MRV) system as the main basis for the implementation of a carbon pricing mechanism and Malaysia's transition towards a low-carbon economy. “The implementation of this carbon tax will be aligned with the National Carbon Market Policy as well as provisions under the RUU PIN to ensure policy uniformity and implementation efficiency. The ministry said the RUU PIN also provides the legal basis for the implementation of the Emissions Trading Scheme (ETS) in the next phase, when the MRV system and domestic carbon market ecosystem have matured. “In addition, the RUU PIN will also regulate the carbon market for compliance, including the use of carbon credits to meet emission reduction obligations. “The ministry intends to table the RUU PIN and the RUU Iklim in the Second Sitting of the Fifth Term of the 15th Parliament,” it said.