CEO Morning Brief

Carbon Levy: Mavcom to Submit Amendments to Code for Gazettement by End-April

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Publish date: Wed, 10 Apr 2024, 11:08 AM
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TheEdge CEO Morning Brief
Photo by Zahid Izzani/The Edge

KUALA LUMPUR (April 9): The Malaysian Aviation Commission (Mavcom) will be submitting amendments to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) related to the carbon levy for gazettement by the end of April.

The commission said it had completed the public consultation to gather feedback on the implementation of carbon fees for air travel.

Recently, Transport Minister Anthony Loke Siew Fook said that the carbon levy could be imposed once Mavcom makes the necessary amendments before the carbon levy could be collected by airlines soon.

“The public consultation is to ensure that while airlines impose carbon fees or any other charges, adequate consumer protection measures are in place,” a Mavcom spokesperson told Bernama.

However, Putrajaya is making it optional for both local and international carriers flying in and out of Kuala Lumpur to charge the carbon levy.

It is worth noting that Denmark, Sweden, South Africa, and the Netherlands are among the countries that have imposed the carbon levy upon passengers.

The carbon levy is an international obligation and is applicable to all airlines, not only in Malaysia, to contribute towards the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia).

According to the International Air Transport Association (IATA), global aviation accounted for about 2% of man-made carbon emissions.

In 2021, in the 77th IATA annual meeting, the industry committed to achieving net-zero carbon dioxide emissions by 2050.

The association estimated that sustainable aviation fuel (SAF) could contribute around 65% of the reduction in emissions needed by aviation to reach net zero in 2050, requiring a massive increase in production to meet demand.

It said the largest acceleration is expected in the 2030s as policy support becomes global, SAF becomes competitive with fossil kerosene, and credible offsets become scarcer.

Source: TheEdge - 10 Apr 2024

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