Carbon leakage refers to the concept of supply chain migration (SCM). When manufacturers opted to produce for higher margin in countries where #esg imposition is low, SCM prevails.
SCM is a phenomenon of globalization with the usual opportunities for arbitrage and profit taking.
#malaysia is working towards a Carbon Pricing Instrument (CPI) regime to tackle #globalwarming through a holistic ecosystem of emissions trading system, carbon cap, carbon tax, carbon credits and carbon offsets.
CPI is tied to Malaysian's national #ndc and hovers beyond environment to address the social impacts of #dei.
BCX with its #vcm operations is likely to contribute favorably to green #gdp, green tourism, low carbon mobility, low carbon cities, #netr, #nimp and #scope3 supply chain emissions of MSME that constitute 97.4% of the total business establishment in Malaysia.
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