Putrajaya tables landmark Carbon Capture Bill amid mixed reactions

• Bill will exclude Sabah and Sarawak for now.
• An environmental NGO points out the lack of public consultation in introducing the bill.

The Malaysian government has introduced the Carbon Capture, Utilizstion, and Storage (CCUS) Bill 2025, a groundbreaking legislative effort aimed at regulating carbon management and aligning the country with international climate commitments under the Paris Agreement. While the bill has been lauded as a critical step toward combating climate change, concerns have emerged over its potential implications and the speed of its passage through Parliament.

[update: The Dewan Rakyat has approved the bill on 6th March]

Key Features of the CCUS Bill

The CCUS Bill, tabled by the Economy Ministry on March 3, seeks to establish a comprehensive framework for carbon capture activities in Malaysia. Among its provisions are:

• The creation of the Malaysian Carbon Capture, Utilisation, and Storage Agency to oversee licensing, compliance, and industry development.
• Mandatory registration and permitting for carbon capture facilities and storage sites, both offshore and onshore.
• Strict monitoring protocols to prevent leaks and environmental damage.
• A licensing system for carbon transportation and imports, requiring companies to register for moving captured carbon dioxide via pipelines or other means.
• An Injection Levy to fund long-term monitoring of stored carbon and a Post-Closure Monitoring Fund for addressing storage risks.

Violations of these regulations could result in fines up to RM2 million or prison sentences of up to five years. The legislation applies across Peninsular Malaysia and Labuan but requires state consultations before implementation in Sabah and Sarawak.

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