Kuala lumpur: The Ministry of Investment, Trade and Industry (MITI) is set to intensify efforts to attract investments in the green transition, aiming to implement the country’s environmental goals on a larger scale. This initiative was announced by MITI’s Deputy Minister, Liew Chin Tong, who emphasized that the ministry’s strategy would extend beyond merely offering incentives or tax exemptions.

According to BERNAMA News Agency, Liew stated that relying solely on incentives and tax breaks would not yield a significant impact. Instead, the focus will shift to attracting substantial investments to facilitate a more extensive green transition. In support of this initiative, MITI plans to provide an annual green investment strategy report, as outlined during a question-and-answer session in the Dewan Negara.

The announcement was made in response to a query from Senator Datuk Ng Keng Heng about MITI’s intentions to prepare a green investment report and implement a carbon footprint audit to prevent the misuse of government incentives. Liew also highlighted the importance of the Measurement, Reporting and Verification (MRV) framework, particularly for the iron and steel industry, as a prerequisite for implementing carbon taxes.

He elaborated that the MRV framework is essential for standardizing and comparing industrial emissions reports. “Before we implement a carbon tax, we need to start with measurement (through MRV) to determine the amount of emissions, and only then can we implement the carbon tax,” he said. The establishment of a carbon tax is expected to lead to the development of an emissions trading system (ETS), creating a market for carbon trading.

Furthermore, Liew noted that the revenue generated from the carbon tax would be reinvested to support the country’s green transition, thereby fostering a sustainable economic environment.