Sarawak rejects inclusion in Malaysia's Carbon Capture Bill. Pictured is Kuching, the capital of Sarawak. (Photo: iStock)
Malaysian government officially unveiled the Carbon Capture, Utilization, and Storage (CCUS) Bill 2025 on March 4, establishing a legal framework for the development of the industry.
The bill is expected to create a dedicated agency to oversee the carbon capture market. However, opposition from Sabah and Sarawak, East Malaysian states that refused to participate, significantly reduces the bill’s economic potential.
CCUS Bill introduced with plans to establish a regulatory body
According to the bill submitted by the Ministry of Economy, the government plans to establish the "Malaysia Carbon Capture, Utilization, and Storage Agency" to review and issue permits. All activities and facilities related to CCUS, including importation and transportation, will be regulated to monitor industry development and prevent environmental damage from CO2 leakage from storage sites.
