KUALA LUMPUR: Malaysia’s National Carbon Market Policy has received approval from the Cabinet, paving the way for the Climate Change Bill to be tabled by June or July, said Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup.

Arthur said the policy lays the groundwork for the country’s carbon market ecosystem, including mechanisms for carbon trading and emissions management.

He noted that rising energy and fuel costs amid the ongoing Middle East conflict have made industries more sensitive to cost pressures.

“We will always be pro-industry and pro-economics. However, the framework must still be established, because we have to move towards that direction anyway,” he told reporters at the soft launch of International Sustainability Week 2026 (ISW 2026) yesterday.

Arthur said the policy’s approval enables the government to proceed with the Climate Change Bill, which will underpin a national carbon emissions scheme. “We plan to bring the Climate Change Bill to be tabled in Parliament by June or July this year, so that we can hopefully at least have the framework up for our carbon emissions scheme.”

He added that the Bill has been in development for several years and remains a key priority for the ministry as a framework must be in place before introducing a carbon tax for tax collection purposes.

“The framework is National Carbon Market Policy and then the Climate Change Act. We passed the first hurdle of the National Carbon Market Policy. Next is the Climate Change Act. We are working with the AGC (Attorney General’s Chambers) to get it out as soon as possible,” Arthur said.

Initiatives such as the Low Carbon Cities Challenge and International Sustainability Week are helping drive green practices across sectors, supported by incentives under Budget 2026, which has allocated RM419 billion, he added.

The minister said enforcement will be introduced gradually, with no strict penalties at present, but will be strengthened over time to ensure compliance with future standards.

Rising energy, petrol and diesel costs may require a review of carbon tax timelines, as industries remain sensitive to cost pressures, Arthur said. “Although we had a plan to implement the carbon tax by this year, we understand that industries are now very sensitive to any cost implications. I don’t think that the geopolitical situation now is an excuse for us to slow down.”

He stressed that fossil fuels are finite and Malaysia must continue to transition towards renewable energy.

Arthur said the Climate Change Act will give the government the authority to enforce carbon reduction measures in line with Malaysia’s obligations under the Paris Agreement and achieve net-zero by 2050.

Many current efforts are voluntary, he said, but the Act will formalise enforcement and accelerate the transition. “If passed, Malaysia will be among about 60 countries globally, and the second in Asean, to introduce a climate law.”

Arthur said the government continues to emphasise reducing reliance on fossil fuels, with the National Energy Transition Roadmap guiding the shift to a more sustainable energy mix. “That’s why from my ministry, we always emphasise, don’t keep on falling back and rely on cheap energy. In any event, we still have to move towards renewable energy.”

ISW 2026 is co-organised by GreenRE Sdn Bhd, the green rating and certification organisation established by the Real Estate and Housing Developers’ Association Malaysia, together with main organiser Qube Integrated Malaysia.

Arthur emphasised that the role of buildings must evolve in response to emerging challenges.

“Sustainable practices and integrated urban development will form the bedrock of resilience and economic growth moving forward.”

ISW 2026 provides a structured platform to move stakeholders from discussion to delivery, ensuring the real-world impact of sustainable outcomes at scale,” he said.

A key highlight of the launch was the announcement of a major industry milestone — GreenRE has surpassed 500 million square feet of certified gross floor area, underlining the rapid scaling of verified green building standards across Malaysia’s property sector.

GreenRE chairman Datuk Seri Fadzil Nordin and Qube Integrated Malaysia managing director Jessie Tan said the milestone reflects the industry’s growing readiness to deliver sustainability at scale.

“Certification is the bridge between a green claim and a green reality. Reaching the 500 million square feet mark reflects the scale at which verified standards are now shaping built environment, meeting the expectations of investors, tenants and regulators in an increasingly performance-driven market.”

More importantly, it signals a shift in the industry from commitment to execution where sustainability is no longer aspirational, but embedded in how we design, build and operate,” Fadzil said.

“As energy and climate pressures intensify, the role of credible, measurable frameworks like GreenRE becomes even more critical in ensuring that sustainability delivers real value, not just intent.”

Held in conjunction with World Green Building Week, ISW 2026 positions Malaysia within the broader global momentum to accelerate sustainable buildings and future-ready cities. The event will take place on Sept 10 and 11 at the Malaysia International Trade and Exhibition Centre Kuala Lumpur.

ISW 2026 is expected to feature over 20 regional and international speakers, 100 innovation exhibitors and 1,000 conference delegates, drawing an estimated 5,000 visitors from Malaysia and across the region.