By DayakDaily Team
KUCHING, March 4: The Malaysian government tabled the Carbon Capture, Utilisation, and Storage Bill 2025 (CCUS Bill 2025) for its first reading in Dewan Rakyat today, applying only to Peninsular Malaysia and Labuan while excluding Sabah and Sarawak.
Presented by Minister of Economy Datuk Seri Mohd Rafizi Ramli, the bill is set for debate and voting on Wednesday (March 5), according to The Edge Malaysia news report.
Designed to “catalyse the development of the carbon capture, utilisation, and storage industry as a new source of economic growth”, its exclusion of the Borneo states is notable, given their vast offshore hydrocarbon basins that could serve as key carbon storage sites.
Malaysia’s first major carbon capture and storage (CCS) project, the Kasawari CCS project in Sarawak, is expected to be the world’s largest offshore CCS initiative and the first led by national oil company Petroliam Nasional Bhd (PETRONAS).
Another major CCS project previously announced is the Southern CCS Hub, located offshore Peninsular Malaysia near Kuantan, Pahang, also spearheaded by PETRONAS.
The CCUS Bill comprises 10 parts and 53 clauses, outlining stringent responsibilities for storage site operators, particularly in environmental protection, risk management, and liability—ensuring operations adhere to international safety and sustainability standards.
“This CCUS Bill is expected to serve as a foundation for Malaysia in tackling climate change while positioning the country as a regional leader in low-carbon technology,” Rafizi said in a separate statement.
Beyond its environmental impact, he added that the bill is poised to drive economic growth by generating job opportunities and fostering a more sustainable and resilient economy.
Rafizi also revealed that permanent carbon dioxide storage will commence offshore, with the Ministry of Economy conducting a feasibility study on potential onshore storage sites later this year.
Notably, the bill introduces an injection levy on carbon dioxide storage site operators. While the government has yet to finalise the levy rate, Rafizi assured that it will be competitive, appropriate, and aligned with international best practices. — DayakDaily
