The Edge Malaysia Features The Asia Foundation in Cover Story on the Future of Carbon Pricing

October 10, 2022 — The Edge Malaysia, a business and financial publication, quotes The Asia Foundation’s climate consultant Darshan Joshi in a cover story on how carbon pricing works and how it will impact companies in Malaysia.

In contrast, “hydrogen is still quite expensive today. If the carbon price is lower than the cost of switching to hydrogen, companies will still prefer to pay the tax. [A carbon tax] will encourage companies to implement [low-carbon] technologies that are cheaper than paying the tax on carbon”, says Darshan Joshi, climate consultant at the Asia Foundation.

Pricing carbon will send a signal to market players that carbon emissions come with a cost, Joshi adds. It results in climate change impacts such as flooding, lower agriculture yields and spread of communicable diseases. It is also a key policy tool for governments to collect funds and invest in low-carbon solutions.

“Since 2009, we have spent an enormous amount of money [to incentivise the take-up of green solutions]. We have our feed-in-tariff (FiT), net energy metering (NEM), green investment tax allowance and so on to boost RE [renewable energy] take-up. Many are incentive- or subsidy-based. In the end, around 95% of our electricity generation still comes from fossil fuels. The impact hasn’t quite been there,” says Joshi.

Related locations: Malaysia
Related programs: Environment and Climate Action
Related topics: Climate Action in Malaysia

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