Are We Ready for the Transition into Carbon-Aligned Trades?

Published on 21 May 2026

Are We Ready for the Transition into Carbon-Aligned Trades?

Dr. Liew Chin Seng

This piece discusses how climate-linked trade regulations such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) are reshaping global commerce. The article explains that exporters will increasingly be required to measure and account for the carbon emissions embedded in their products, creating major challenges for countries like Malaysia that rely heavily on export-oriented industries.

Dr. Liew argues that Malaysia’s sustainability ecosystem remains incomplete despite progress in ESG reporting and climate governance. The article calls for stronger carbon accounting infrastructure, local digital solutions, better emissions databases, carbon pricing mechanisms, and education reforms to ensure Malaysia remains competitive in a future where climate performance directly affects trade access and economic resilience.