Japanese, Singapore firms seek carbon storage in S’wak, federal framework sought

Abang Johari speaks to reporters after officiating the Borneo International Water & Wastewater Exhibition and Conference (BIWWEC) 2026 in Kuching on July 15, 2026. Photo credit: Ukas
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By Amanda L

KUCHING, July 15: Sarawak has urged the federal government to establish a regulatory framework for cross-border carbon dioxide transport as companies from Japan and Singapore seek to store captured emissions in the State’s carbon capture, utilisation and storage (CCUS) reservoirs.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the issue was raised during the National Energy Council meeting in Kuala Lumpur earlier today, where he highlighted the need for clear regulations to facilitate the movement of carbon dioxide across international borders.

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He said Sarawak has already received applications from several foreign companies seeking to store captured carbon in the State, including Japanese conglomerate Sumitomo but the absence of a regulatory framework remains a key hurdle.

“We have received applications from several companies from Japan and Singapore to store carbon in Sarawak.

“We have the CCUS reservoirs but there is no regulatory framework on how carbon dioxide can be transported here across borders,” he told reporters after officiating the Borneo International Water & Wastewater Exhibition and Conference (BIWWEC) 2026 here today.

Abang Johari said while Sarawak has enacted its own CCUS legislation, coordination with the federal government is necessary as cross-border transportation falls under federal jurisdiction.

“We use our own CCUS law, but there must be coordination with the federal government because we have received many applications for carbon storage,” he said.

He cited Sumitomo as an example of a company interested in transporting captured carbon dioxide from Japan to Sarawak for permanent storage in the State’s offshore reservoirs.

According to the Premier, Sarawak is well positioned to become a regional carbon storage hub due to its vast geological storage capacity, making CCUS a key component of the State’s emerging green economy. — DayakDaily

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