Tek Securities Limited Hails Inclusion of Climate Sukuk and Carbon Tax in Malaysia Budget 2026

Tek Securities Limited Hails Inclusion of Climate Sukuk and Carbon Tax in Malaysia Budget 2026

KUALA LUMPUR, Oct 13 (Bernama) -- Tek Securities Limited (TEK), a licensed securities firm from Labuan Financial Services Authority (LFSA), a leading innovator in sustainable and Islamic finance, has issued a statement in strong support of the anticipated inclusion of the Climate Sukuk framework and a Carbon Tax mechanism in the upcoming Malaysia Budget 2026. This expected policy alignment in the first budget under the Thirteenth Malaysia Plan (13MP) is seen as a pivotal moment for the nation’s climate finance agenda and its commitment to the net-zero carbon target.

TEK, which recently pioneered the world’s first Climate Sukuk featuring carbon credits as a profit payout, views the government’s move as essential to mobilize the vast capital required for Malaysia’s green transition and to establish the country as a global leader in sustainable Islamic finance.

The inclusion of the Climate Sukuk framework in the national budget is a significant validation of innovative financial instruments designed to address climate challenges.

TEK’s pioneering model, which links investor returns directly to verifiable environmental outcomes via carbon credits, offers a powerful mechanism to attract private and institutional capital. The focus on climate resilience ensures that funding is channeled towards projects that not only reduce emissions but also help communities and infrastructure adapt to the inevitable impacts of climate change, such as sustainable infrastructure, flood mitigation, and renewable energy adoption.

“Integrating our innovative Climate Sukuk model, where the payout is secured by tangible, verifiable carbon credits, into the national financial blueprint will unleash new sources of capital for high-impact projects,” stated a TEK spokesperson. “This approach directly supports the development of Malaysia’s voluntary carbon market and provides a Shariah-compliant path for ESG-focused investors globally.”

The expected introduction of a Carbon Tax in Budget 2026 for selected sectors is a critical market-based policy that will complement the Climate Sukuk initiatives.

The tax will provide a clear price signal for carbon emissions, incentivizing businesses to invest in low-carbon technologies and green projects.

The revenue generated from the carbon tax can be strategically recycled by the government to fund green transition initiatives, including the issuance of more sovereign or quasi-sovereign Climate Sukuk, creating a self-sustaining ecosystem for climate finance.

It also prepares Malaysian exporters for international mechanisms like the European Union’s Carbon Border Adjustment Mechanism (CBAM), ensuring the nation’s products remain competitive in a carbon-constrained global economy.

Climate Sukuk, particularly those tied to tangible environmental assets like carbon credits, are more than just a financing tool; they are a strategic asset for the nation’s future.

Malaysia uses its position as a global Islamic Finance hub to leverage Sukuk structure, pioneering new standards in sustainable Islamic finance. This strategy bolsters the country’s international standing and attracts Foreign Direct Investment (FDI) into high- value green sectors, thereby diversifying its financial services industry. The funds raised are channeled into essential climate-resilient infrastructure (such as green urban development and smart grids), underpinning national stability and growth while simultaneously creating high-skilled jobs in the green economy, particularly in renewable energy and environmental technology.

TEK calls upon all stakeholders to embrace these forthcoming policies in Budget 2026, which are critical for transforming Malaysia’s financial architecture to be future-ready and climate-aligned.

About Tek Securities Limited (TEK):

Tek Securities Limited is a licensed securities firm focused on innovating within the nexus of Islamic finance, technology, and environmental, social, and governance (ESG) principles. Operating out of the Labuan International Business and Financial Centre (Labuan IBFC), TEK is committed to developing groundbreaking financial solutions, such as the world’s first Climate Sukuk with carbon credit payout, to accelerate the global green transition.

SOURCE: ​Tek Securities Limited (LL18315)

FOR MORE INFORMATION, PLEASE CONTACT:

Tek Securities Limited

Communications Department

Tel: +6011-1886 6887

Email: marketing@tekfinancialgroup.com

Website: www.tekfinancialgroup.com

--BERNAMA