KUALA LUMPUR (Oct 12): The Ministry of Investment, Trade and Industry (Miti) is implementing a carbon capture, utilisation, and storage (CCUS) pilot project at an iron and steel plant on the East Coast, expected to be finalised by the end of 2027.

In a written reply published on the Parliament’s website on Monday, Miti stated that the project is expected to provide a clear picture, along with cost and reporting data, that can serve as a guide on the suitability of CCUS methods for the iron and steel industry and its supply chain, including micro, small, and medium enterprises (MSMEs).

“The iron and steel sector is a focus because it is exposed to international carbon reporting requirements such as the European Union’s Carbon Border Adjustment Mechanism (EU-CBAM) and is a major contributor of carbon emissions in the Industry Process and Product Use (IPPU) sector.

“Moreover, mitigation efforts through energy efficiency and the use of renewable energy alone are not capable of reducing carbon emissions from the iron and steel production process; thus CCUS is an important complement in the decarbonisation pathway of this industry,” it said.

The ministry was responding to Dr Sivakumar Varatharaju Naidu (PH-Batu Gajah) on measures to assist manufacturing SMEs develop auditable carbon emission data to meet EU-CBAM and ESG requirements in the global supply chain, as well as expand the use of i-ESGReady and i-ESGStart.

Meanwhile, Miti, through the Malaysia Steel Institute (MSI), has developed an Environmental, Social, and Governance (ESG) Framework for the iron and steel industry to help companies implement the ESG process in a structured manner, encompassing assessment, disclosure, reporting, and carbon data verification.

“The approach includes training and capacity building, industry-specific ESG assessments, systematic data collection and reporting, data traceability and auditability, continuous rating and improvement, as well as consultancy and guidance services, especially for MSMEs that do not have full-time ESG or sustainability officers,” it said.

The ministry stated that it has also introduced i-ESGStart as a basic guide to help the manufacturing sector, including MSMEs, adopt ESG practices, including sustainability reporting and calculating greenhouse gas emissions, in line with market needs and international standards.

“To expand the use of i-ESGReady and i-ESGStart, Miti will continue to promote these two instruments in ESG awareness and capacity-building programmes in collaboration with industry representatives.

“This approach will focus on MSMEs, especially manufacturing companies involved in the global supply chain and facing increasing ESG requirements and carbon reporting,” it added.

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