KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) is reviewing the Malaysian Aviation Consumer Protection Code 2016 (MACPC) in lieu with the introduction of carbon fee for air travel that is slated to be earliest by April this year.
Mavcom said the Transport Ministry had agreed in principle to allow local and international airlines flying in and out of Malaysia to charge a carbon fee on domestic and international flights.
The aviation regulator also said the fee is optional and is up to the airlines' discretion.
"Aligned with the implementation of this new policy, the commission is currently reviewing and enhancing the MACPC.
"Mavcom acknowledges the International Civil Aviation Organisation's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
This scheme is a crucial aspect of the decarbonisation strategy and is a significant step towards achieving net-zero carbon emissions by 2050," a Mavcom spokesperson told Business Times in an email query.
Mavcom is currently conducting a survey to gather feedback from the public on the implementation of the carbon fee.
Interested individuals can participate in the aviation regulator's official website.
On March 4, Transport Minister Anthony Loke said some amendments to the Mavcom's Code of Conduct regulations pertaining to consumer protection must be made before the carbon fee is introduced.
"That code will be amended by April this year. Once Mavcom has finalised the amendment of the consumer protection code of conduct, that is up to the airlines on when they plan to start collecting the carbon levy.
"But of course, they (airlines) have to have a very transparent mechanism to show how they spend that levy," Loke said, adding that the levy is not a tax collection by the government.
The idea for air travel carbon fee was mooted by airlines in Malaysia to offset their carbon emissions.
On how exactly will the carriers use the fees collected or whether the public could see the expenses made using the fees remain unknown currently.
As of today, only Malaysia Airlines Bhd is using blended sustainable aviation fuel (SAF) for its flights.
Malaysia's move to implement the optional carbon fee collection comes after Singapore announced a SAF levy to airlines and travellers to purchase the alternative fuel.
The Civil Aviation Authority of Singapore (CAAS) said the levy collected would be based on various factors including distance travelled and class of travel.
Singapore had announced last month that all airlines departing the country must use at least one per cent of SAF in its bid to reduce carbon emissions.
Loke said unlike Singapore, Malaysia would make it optional for airlines to charge the carbon fee.
"Our policy is different than Singapore. Singapore made it mandatory. We (Malaysia) make it optional," he said.
On Feb 26, Capital A Bhd chief executive officer Tan Sri Tony Fernandes has called on the governments and aviation regulators in the region to improve their air traffic management as an immediate way to tackle the carbon emissions issue.
He said airlines would burn a lot less fuel if the take-off and landing time are optimised.
"SAF is not going to change the world any time soon but there are things that we all can do now.…SAF is just too expensive at the moment. There has to be a bigger supply…One per cent (of SAF) is not going to change a lot of things and passengers would have to fund this. Every passenger coming in has to pay a surcharge for SAF," he added.
Capital A's airline unit AirAsia Bhd is one of the airlines that mooted the idea of carbon fee introductory to help airlines offset their carbon emissions, said Fernandes.
Malaysia Aviation Group (MAG) told Business Times on March 4 that it viewed Singapore's recent decision as a significant step forward in the region's sustainability efforts as SAF remains a critical level in achieving the aviation industry's goal for net-zero emissions by 2050.
The group also said incentive programmes to foster innovation, increase SAF production and ensure affordability should be introduced following the mandate.
"MAG believes that with improvements in technology, increased demand and wider availability, SAF can be scaled up to commercially viable levels for wider adoption with improved unit cost of production overtime."
"We believe it's important for partners across the value chain to take a long-term outlook and approach towards the adoption of SAF, and we remain committed to collaborating with governments and industry stakeholders to accelerate the aviation industry's decarbonisation efforts and meet shared goals," MAG spokesperson said.