By DayakDaily Team
KUCHING, Nov 12: Federal Government will work with Sarawak to refine the Carbon Capture, Utilisation and Storage (CCUS) framework to prevent regulatory overlap, particularly in matters involving international carbon trade, Economy Minister Akmal Nasrullah Mohd Nasir said.
According to a TVS report, he said coordination with Sarawak was crucial given that the State has its own legislative framework, as well as the potential to serve as a storage destination for carbon dioxide imported from abroad.
He stressed that international cooperation involving carbon importation and storage must take into account the respective jurisdictions and interests of both governments to ensure investments are carried out in an orderly manner.
“Therefore, in terms of efforts related to importation, that indeed falls under the national administrative framework.
“However, at the same time, the potential possessed by Sarawak, including in terms of storage facilities, needs to be examined and refined more thoroughly,” he said.
He was responding to a supplementary question from Datuk Dr Richard Rapu (GPS-Betong) on policy coordination and carbon revenue governance between the Federal Government and Sarawak during the question-and-answer session in the Dewan Rakyat today.
Richard had also raised concerns over potential overlaps in carbon taxes or levies, as well as investment uncertainty for foreign companies seeking to import carbon dioxide for storage in Sarawak’s waters.
On this, Akmal Nasrullah explained the viability of CCUS investments depended on securing sufficient volumes of carbon dioxide.
He pointed out that developing a comprehensive carbon collection and storage ecosystem would require mutual understanding and cooperation with other countries.
He also emphasised the need for careful coordination in potential collaborations with countries such as Japan, South Korea and Singapore to ensure that the interests of all parties were protected.
“For me, we truly need to establish discussions and create the best possible platform to avoid any overlap or losses to the country,” he said.
He noted that the Carbon Capture, Utilisation and Storage Act 2025 (Act 870) applies only to Peninsular Malaysia and the Federal Territory of Labuan. – DayakDaily
