Malaysia has announced a RM470 billion Budget for 2026 and confirmed the introduction of a carbon tax next year. Prime Minister Anwar Ibrahim said that the tax will initially target the iron, steel, and energy sectors.

The tax mechanism will align with the forthcoming national carbon market policy and climate change bill. The budget maintains support for the National Energy Transition Roadmap (NETR), which aims for 70% renewable energy capacity by 2050, backed by the RM150 million national energy transition fund.

Additionally, the Green Technology Financing Scheme (GTFS), with RM1 billion in financing, is extended until December 2026 to support various green projects.