Carbon Capture, Utilization and Storage Act 2025 (the "CCUS Act") applies to Peninsular Malaysia and the Federal Territory of Labuan only, and does not extend to the East Malaysian states of Sabah and Sarawak. The CCUS Act permits the transportation or importing for permanent storage at designated offshore or onshore sites in Malaysia of carbon dioxide captured both within and outside of Malaysia. At each stage of the CCUS value chain (capture, transport/import, storage assessment, and permanent storage), compliance is required with prescribed technical and environmental standards, and relevant certificates and permits from the CCUS Agency must be obtained.
The CCUS Agency supports implementation of the CCUS Act 2025, overseeing, regulating, and promoting CCUS activities across the value chain, issuing permits, managing resources and funding mechanisms, advising the government, and ensuring compliance with the CCUS Act 2025.
A Post-Closure Stewardship Fund has been established to cover post-closure monitoring and remediation costs of the carbon dioxide storage sites and is financed through government allocations, injection levies collected from offshore storage operators, and earnings from investments.
