In order to lower the carbon emissions that lead to global warming, Malaysia is considering the deployment of market-based carbon pricing policies such as carbon trading and a carbon tax. This paper, which is based on a memorandum submitted to the Malaysian government, presents a critical assessment of these policies from a climate justice perspective. The very basis of the carbon offsets traded in carbon markets – that a reduction or removal of emissions in one place balances out emissions elsewhere – is scientifically unsound and allows for continuing emissions that the planet can ill afford. Offsetting projects can also displace indigenous peoples and local communities, while the carbon markets themselves are vulnerable to financial instability and even criminal activity. A carbon tax meanwhile will likely have only limited impact in cutting emissions, due to a myriad of loopholes, exemptions and political constraints in determining the tax rate.