This article first appeared in The Edge Malaysia Weekly on March 17, 2025 - March 23, 2025

After months of delays, the Carbon Capture, Utilisation and Storage (CCUS) Bill was passed on March 6, with the goal of reducing carbon dioxide (CO2) emissions, mitigating the effects of climate change and catalysing Malaysia’s development of CCUS as a source of economic growth, according to the Ministry of Economy.

While the bill has been passed, the Act will only come into operation on a date to be appointed by the minister. It will only apply to Peninsular Malaysia and the Federal Territory of Labuan.

Reactions to the passage of the bill have not been all positive, with non-governmental organisations such as Sahabat Alam Malaysia expressing concerns about the bill’s rushed implementation and lack of proper strategies to address concerns and risks associated with CCUS, including a provision for detailed environmental and social impact assessments, and public consultation prior to approvals.

A major point of the bill is the setting up of a Malaysia CCUS agency. Details of the agency are outlined below.

The bill adds that an additional technical entity may be established alongside the proposed CCUS agency by the minister responsible.  This agency will advise them on all CCUS  matters, such as carbon capture, transportation and/or storage of CO2, and onshore and/or offshore storage of CO2. 

The role of the agency is as follows:

Furthermore, the bill notes that the minister may make further regulations on CCUS as may be necessary or expedient for the purpose of carrying into effect the provisions of this Act.

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