In March 2025, the Parliament passed the Carbon Capture, Utilisation and Storage Bill 2025 (“CCUS Act“). The CCUS Act aims to reduce carbon dioxide emissions, mitigate the effects of climate change, and promote the development of the carbon capture, utilisation, and storage (“CCUS“) industry as a new source of economic growth.
The CCUS Act sets out a regulatory framework for the whole value chain of CCUS, which comprises capture, transportation, utilisation, and storage of carbon dioxide, and is applicable to Peninsular Malaysia and the Federal Territory of Labuan. CCUS activities in Sarawak are governed separately by the Land (Carbon Storage) Rules 2022.
The CCUS Act will come into operation on a date to be appointed by the Minister by notification in the Gazette.
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