By Author 
KUALA LUMPUR, March 3 — The Economy Ministry has tabled the Carbon Capture, Utilization, and Storage (CCUS) Bill 2025, aiming to regulate carbon management as part of the country’s commitment to reducing greenhouse gas emissions and combating climate change.
Already tabled for its first reading, the Bill proposes the establishment of the Malaysian Carbon Capture, Utilization, and Storage Agency, which will oversee licensing, compliance, and industry development.
The agency will ensure safe carbon capture, transportation, utilization, and permanent storage.
Under the proposed legislation, carbon capture facilities must be registered, and operators are required to obtain permits for offshore and onshore carbon storage sites.
Strict monitoring and safety protocols will be enforced to prevent leaks and environmental damage.
The Bill also proposes to introduce a carbon transportation and import licensing system, requiring companies to register for the movement of captured carbon dioxide via pipelines, rail, or other means.
Importing captured carbon from other countries will be subject to regulatory approval.
To fund long-term monitoring, the Bill is proposing an Injection Levy, which operators must pay for government oversight of stored carbon; a Post-Closure Monitoring Fund will be established to handle long-term storage risks.
Violations of the law, including unlicensed carbon storage or failure to meet safety requirements, could result in fines of up to RM2 million and prison sentences of up to five years.
By regulating CCUS activities, the Bill seeks to align Malaysia with international climate commitments under the Paris Agreement while fostering a new sector for economic growth.
The legislation will apply across Peninsular Malaysia and the Federal Territory of Labuan, with state consultations required before implementation in other regions.