RECOMMENDATION FOR A NATIONAL CARBON PRICING MECHANISM: The Hybrid Upstream-Downstream Model

RECOMMENDATION FOR A NATIONAL CARBON PRICING MECHANISM: The Hybrid Upstream-Downstream Model | Authorea try { document.documentElement.classList.add('js'); } catch (e) { } var _gaq = _gaq || []; _gaq.push(['_setAccount', 'G-8VDV14Y67G']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); Skip to main content Preprints Collections Wiley Open Research IET Open Research Ecological Society of Japan All Collections About About Authorea FAQs Contact Us Quick Search anywhere Search for preprint articles, keywords, etc. Search Search ADVANCED SEARCH SCROLL This is a preprint and has not been peer reviewed. Data may be preliminary. 23 July 2025 V1 Latest version Share on RECOMMENDATION FOR A NATIONAL CARBON PRICING MECHANISM: The Hybrid Upstream-Downstream Model Authors : MUHAMMAD SUKRI RAMLI 0009-0003-7206-7706 [email protected] , Muhammad Sukri , and Bin Ramli Authors Info & Affiliations https://doi.org/10.22541/au.175329627.75545795/v1 190 views 82 downloads Contents Abstract Supplementary Material Information & Authors Metrics & Citations View Options References Figures Tables Media Share Abstract To solidify Malaysia's role as a climate leader and gain a decisive economic edge in response to global pressures like the EU's Carbon Border Adjustment Mechanism (CBAM), this paper proposes a pragmatic and equitable hybrid carbon tax framework for implementation starting in 2026. This forward-thinking model provides a clear roadmap that harness existing institutions by integrating an upstream tax on fuels for power generation, administered by the Royal Malaysian Customs Department (JKDM), with a downstream tax on industrial emissions, managed by the Inland Revenue Board (LHDN). To ensure the highest standards of transparency and international credibility, the entire framework will be anchored by a worldclass digital Monitoring, Reporting, and Verification (MRV) system overseen by the Ministry of Natural Resources and Environmental Sustainability (NRES). The policy introduces a predictable carbon price, starting at RM40/tCO₂e, to give industries the certainty needed for green technology investments. It is carefully designed to protect economic stability through mechanisms that prevent double taxation and support trade-exposed industries. Critically, 100% of the revenue will be reinvested directly into the economy. This will be achieved through a "Carbon Dividend," providing cash assistance to households, and a "Green Growth" fund to empower industrial innovation. This ensures a just transition that accelerates Malaysia's decarbonization, enhances national competitiveness, and directly benefits all communities. . Supplementary Material File (carbontaxmalaysia1.pdf) Download 1.35 MB Information & Authors Information Version history V1 Version 1 23 July 2025 Copyright This work is licensed under a Non Exclusive No Reuse License. Keywords carbon cost carbon dividend carbon tax ghg reductions paris agreement Authors Affiliations MUHAMMAD SUKRI RAMLI 0009-0003-7206-7706 [email protected] View all articles by this author Muhammad Sukri Asia School of Business Kuala Lumpur View all articles by this author Bin Ramli Asia School of Business Kuala Lumpur View all articles by this author Metrics & Citations Metrics Article Usage 190 views 82 downloads .FvxKWukQNSOunydq8rnd { width: 100px; } Citations Download citation MUHAMMAD SUKRI RAMLI, Muhammad Sukri, Bin Ramli. RECOMMENDATION FOR A NATIONAL CARBON PRICING MECHANISM: The Hybrid Upstream-Downstream Model. Authorea . 23 July 2025. DOI: https://doi.org/10.22541/au.175329627.75545795/v1 If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download. 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