SEPANG (March 4): Airlines can start charging the carbon levy once amendments to the Malaysian Aviation Commission (Code of Conduct) Regulations 2018 are finalised by the Malaysian Aviation Commision (Mavcom) in April, said Transport Minister Anthony Loke Siew Fook.
He said the carbon levy is not collected by the government, but by airlines to offset carbon emissions.
"Our policy is different from Singapore that makes it mandatory — we make it optional. It depends on airlines — either local or international airlines flying in and out of Kuala Lumpur — whether to impose that (the carbon levy),” he told reporters after launching AirAsia fixed fares for late-night flights between Peninsular Malaysia and Sabah and Sarawak, in conjunction with the upcoming Hari Raya Aidilfitri celebration.
Loke said there is a need for a transparent mechanism to show how airlines spend the levy.
On Feb 23, Loke was reported as saying the Ministry of Transport had reached an agreement in principle to allow airlines to impose additional fees to cover their carbon emissions.
He said certain airlines would adopt the fee to purchase sustainable aviation fuel, while others would pay carbon credit to offset their carbon emissions.
Loke said the carbon levy is an international obligation and applicable to all airlines, not only in Malaysia, to contribute towards the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia).
Meanwhile, Capital A Bhd chief executive officer Tan Sri Tony Fernandes said the government and carbon offset companies are encouraged to set up projects in Malaysia or Asean to ensure a transparent process.