Upfront Financing Needed To Support Malaysia’s Green Steel Transition - Think Tank

Key takeaways

Malaysia's Socio-Economic Research Centre urges the government to provide upfront financing and bank collaboration to support the steel industry's transition to green production. This is necessary because current funding mechanisms rely on future carbon tax revenues, leaving producers without immediate capital for expensive upgrades.

• SERC recommends government support extend beyond tax incentives to include direct bank collaboration for financing production upgrades.
• The Steel Industry Roadmap 2035 proposes a Carbon Competitiveness Fund, but it depends on future tax or fee collection.
• In 2024, 81.2 percent of Malaysia's crude steel output used the carbon-intensive blast furnace-basic oxygen furnace route.

Summarised automatically by AI from the original article by Bernama. AI can make mistakes, so check the original for details.