Loke: No decision on green fuel for planes

The Star

Malaysia has yet to decide on mandating airlines to use sustainable aviation fuels, although they are being encouraged to do so, said Anthony Loke.   The Transport Minister told reporters that on Friday (Feb 23), and when asked about the additional costs for consumers with the switch to green fuel, Loke indicated that such costs would be kept minimal, emphasising that the government's objective is not to burden consumers but to meet the obligations for carbon emission reduction.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00 I have a question about aviation sector, okay?

00:04 Singapore recently announced that a new green jet fuel levy will be imposed on travellers beginning 2026

00:10 so all flights departing from there will have to use sustainable aviation fuels.

00:15 In Malaysia's airport, are you required to do the same?

00:19 I was there when the Singapore Transport Minister announced that policy.

00:22 I was in the Singapore Aviation Conference as well, or SUMIT.

00:26 Yes, we are fully aware of the steps taken by Singapore to introduce a carbon levy on all flights departing from Singapore beginning 2026.

00:36 As far as Malaysia is concerned, we have not had such policy.

00:41 We have not decided on such policy yet to make it mandatory.

00:45 But of course we have the same commitment to reduce carbon emission by 5% by 2030 and net zero by 2050.

00:55 So various governments, various countries are undertaking different initiatives to reduce carbon emission.

01:04 As far as Malaysia is concerned, of course we also encourage airlines to adopt sustainable aviation fuel, SAF, but that comes with a cost.

01:13 So some airlines have written to the Ministry to request that they be allowed to make certain charges for carbon, carbon levy.

01:23 But that is not mandatory of all airlines.

01:26 So we are reviewing it.

01:28 In principle, we allow airlines to have some additional fee in terms of covering their carbon emission.

01:37 Because some will adopt it for purchasing of SAF, or some will pay carbon credit to offset their carbon emission.

01:46 So in short, yes, Malaysia will also take certain steps, but at this point of time, it will not be mandatory of all airlines.

01:54 But we allow airlines to adopt their different strategy in terms of carbon emission.

02:01 Besides having this carbon levy, there are other steps that must be taken as well, such as optimising our operational efficiency of airlines, of air traffic management, of airports.

02:12 So we are taking all those steps together to ensure that we are also moving towards reduction of carbon emission.

02:21 There are many airlines currently doing this already.

02:23 For what?

02:24 For your carbon levy.

02:25 No, they have written to us.

02:27 They have yet to start the levy.

02:31 We have to make some certain amendments under our Malaysia Aviation Consumer Code of Conduct by MAFCOM.

02:41 So this will be announced later.

02:44 So if they do, when it just comes into implementation, there will be a certain cost coming to the consumers?

02:50 Yes, it will be a very minimal cost.

02:52 It's a very, very minimal cost.

02:54 So firstly, our objective is not to burden the passenger, not to burden the consumer.

03:02 But on the other hand, we have this obligation.

03:05 Every country must fulfil this obligation for carbon reduction, for carbon emission reduction.

03:11 So we have to take a balance.

03:13 Because if we impose a too high levy, it will kill the industry.

03:18 It will discourage people from flying and it will have many negative impacts on the industry and on the economy.

03:26 So we are taking a balancing act while we understand the burden faced by airlines to reduce carbon emission.

03:34 But at the same time, we do not also want to burden the passengers.

03:38 So even if there are charges imposed by airlines, it must be very, very minimal.

03:44 Any rough walk-up figures?

03:45 No, I do not want to give any figures yet.

03:47 We will announce it, but let's be assured that it will be very minimal.

03:53 But it's not mandatory of all airlines.

04:00 We have not taken that policy decision.

04:02 Okay.

04:03 Thank you.

04:04 [END]

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