Carbon trading, already a complex mechanism, to be made Shariah-compliant, Parliament told

Environment and Water Minister Datuk Seri Tuan Ibrahim Tuan Man speaks during a press conference after launching the Sungai Langat Trail in Bangi November 30, 2021. ― Bernama pic
Environment and Water Minister Datuk Seri Tuan Ibrahim Tuan Man speaks during a press conference after launching the Sungai Langat Trail in Bangi November 30, 2021. ― Bernama pic

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KUALA LUMPUR, Dec 1 — Environment and Energy Minister Datuk Seri Tuan Ibrahim Tuan Man told the Dewan Rakyat today that the planned domestic carbon trading market, a complex mechanism to incentivise reduction in carbon emission, will be Shariah-compliant.

The federal government said it would seek to follow the European Union in setting up a domestic carbon trading market to cut carbon emissions.

Tuan Ibrahim was reported saying in September that a domestic emissions trading scheme will be developed by the Environment and Water Ministry and carried out jointly with the Finance Ministry, Bursa Malaysia and other “stakeholders”.

“We held a seminar on how to make carbon trading Shariah-compliant and I am in talks with Oxford University with the plan to hold several more engagements to learn how we can make it in line with Shariah requirements,” the minister said during Question Time.

Details of the carbon trading market is scant but the Voluntary Carbon Market (VCM) initiative is expected to be launched on Bursa Malaysia in efforts to achieve a carbon-neutral country by 2050, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz announced in October.

He said the initiative would act as a “voluntary platform for carbon credit trading between green asset owners and others in the move towards low-carbon practices”.

The VCM will be part of Putrajaya’s green technology and sustainable drive.

Tengku Zafrul had said future spending plans would be aligned to green budgeting, in line with the government’s commitment to environmentally-friendly development projects and programmes.

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