- Transport Ministry’s carbon levy questioned by experts.
- Shukor Yusof doubts the levy’s effectiveness and warns of higher airfares.
The Transport Ministry’s carbon levy faces scrutiny from aviation experts over its effectiveness and impact. Shukor Yusof of Endau Analytics doubts the levy’s ability to reduce carbon emissions or provide significant benefits.
He warns that the levy, left to airlines’ discretion, might raise airfare prices, potentially reducing domestic air travel demand. Low-cost airlines could be hit hardest by increased operational costs.
Yusof also noted the challenge of adopting sustainable aviation fuel due to its higher price. Despite his concerns, another expert sees the levy as a step towards sustainability. The debate continues, highlighting the delicate balance between environmental goals and economic realities in the aviation industry.