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Airlines May Soon Impose Carbon Emission Fee

Transport minister Anthony Loke said the cost will be "minimal".

by Ikmal Rozlan
February 26, 2024
malaysia airlines domestic flight frequency hari raya mavcom mot ministry of transport tickets fares students ipta

Photo: cegoh/Pixabay

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The Transport Ministry has reached an agreement in principle that will allow airlines to charge customers additional fees to cover their carbon emission. This was announced by transport minister Anthony Loke, who explained certain airlines will impose the extra fee either to purchase sustainable aviation fuel (SAF) or pay for carbon credits to offset the carbon emission of flights.

Loke said that the carbon emission fee will not be mandatory for all airlines and that carriers have yet to start the levy as it would require amendments under the Malaysian Aviation Consumer Protection Code 2016 by the Malaysian Aviation Commission (MAVCOM). The minister added that it is a balancing act between reducing carbon emission and not burdening flight passengers, admitting that too many levies could kill the industry.

airasia flight plane

This comes as Singapore recently announced that flights departing from Singapore will be required to use SAF starting from 2026. The country will introduce a levy to support this, ranging from S$3 (~RM11) to S$16 (~RM57) for economy class passengers while those in premium classes will pay higher levies.

There are no details yet as to how much the carbon emission fee will be, but Loke stated that it will “come at a very minimal cost”.  Moreover, while his ministry allows airlines to adopt different approaches to tackle carbon emissions, the minister emphasised that airlines must optimise their operational efficiency and air traffic management.

(Source: Bernama)

Filed Under Airlinescarbon emissionmavcom
Updated 4:35 pm, Mon, 26 February 24
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