Malaysia will soon introduce carbon pricing to facilitate carbon trading and explore a carbon tax, Deputy Investment, Trade, and Industry Minister Liew Chin Tong announced. He emphasized that revenue from these measures should be directed towards green investments, such as green steel.

Liew said that the EU will implement a carbon border adjustment mechanism (CBAM) in 2026. Under CBAM, steel and other exports from Malaysia will be taxed unless Malaysia collects the tax.

He also stressed the Ministry's commitment to addressing the scrap metal challenge, finding solutions to shortages, and improving the ecosystem. Malaysia's crude steel production capacity utilization rate was 39.1% in 2023, significantly below the global average of 75.7% and the ASEAN-6 average of 60.1%.