Westports Holdings, Internal Carbon Cost in Investment Appraisal
Westports Holdings Berhad manages container and conventional cargo operations and serves as the main gateway for central Peninsular Malaysia. It handled 11.33 million TEUs in 2025, about 75 percent of Port Klang's container market (Westports, 2026). In its 2024 report, Westports stated that Malaysia had yet to adopt a carbon pricing mechanism such as a carbon tax (Westports, 2025, p.30). Westports aims to reach net zero Scope 1 emissions by 2050 (Westports, 2026).
Approach
Carbon cost in investment appraisal. Westports applies a structured investment appraisal method. It considers life cycle GHG reduction potential, asset replacement timing, efficiency gains, technology readiness and long-term internal carbon cost assumptions, while also seeking a favorable return on investment (Westports, 2026). It reports an internal carbon price of RM83.33 per tonne CO2e for 2025, used in scenario testing and capital appraisals (Westports, 2026, p.32).
Carbon tax exposure test. In its 2024 report, Westports estimated that a carbon tax similar to Singapore's SGD45 per tonne, applied to its Scope 1 and 2 emissions of 177,641 tonnes a year, could cost it RM26.4 million (Westports, 2025, p.30). This is an exposure scenario and is separate from the internal carbon price.
Equipment electrification pathway. Westports plans to begin terminal truck electrification in 2026, reaching 25 percent by 2030 and 73 percent by 2040, and to electrify 26 percent of rubber tyred gantry cranes by 2030 and 77 percent by 2040 (Westports, 2026). These are future milestones, not achieved fleet shares.
Renewable electricity. Westports projects more than 29,000 MWh of annual solar generation by 2035. It subscribed to the Green Electricity Tariff and began receiving Malaysian Renewable Energy Certificates from December 2025 (Westports, 2026).
Results
Westports has set emissions intensity targets of 14.4 kg CO2e per TEU by 2030 and 12.8 kg CO2e per TEU by 2035 (Westports, 2026). It began receiving Malaysian Renewable Energy Certificates in December 2025 (Westports, 2026). Outcomes of the investment appraisal method have not yet been reported.
Transferability
Ports in DMCs without a national carbon price can still test investments against one. A first step is to test exposure by costing current emissions at a reference carbon tax rate, as Westports did in its 2024 report using Singapore's rate.
This exposure test is separate from an internal carbon price. The next step is to set an internal price, apply it in capital appraisal alongside replacement timing and technology readiness, and disclose the price and where it is used.
Sources
All information used for this case study was based on publicly available resources.