On 18 September 2024, MIDA and Alliance Bank Malaysia Berhad held the inaugural workshop on the Carbon Border Adjustment Mechanism (CBAM) in Kuala Lumpur. This event brought together industry leaders and environmental experts from Riverstone Environmental Sdn. Bhd. to explore the impact of  CBAM on Malaysia’s industries and sustainable practices.

CBAM is a carbon border tax implemented by the European Union (EU) aimed at preventing carbon leakage by levying a price on carbon emissions for carbon-intensive goods entering EU markets. Datuk Bahria Mohd Tamil, Deputy Secretary General (Investment and Management) of the Ministry of Investment, Trade and Industry (MITI), emphasised the dual challenge and opportunity this transition presents for Malaysia’s businesses.

While, MIDA CEO, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid urged stakeholders in the supply chain to understand CBAM requirements thoroughly, highlighting that proactive measures are essential for maintaining competitiveness. He reaffirmed MIDA’s commitment to supporting Malaysian businesses in navigating these new regulations.

The workshop provided insights on CBAM’s impact, compliance strategies, and the incentives available to assist businesses in adapting to the demanding environment. Alliance Bank also showcased its green financing options to support the transition to sustainable practices, underscoring the importance of resilience for local manufacturers and exporters impacted by the new policy.