Carbon Capture, Utilization and Storage Act 2025

Date  gazetted

Entry into force

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.

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

This sector involves the wholesale and retail selling of goods.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

This sector involves activities to move goods and people, alongside the storage of products.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Carbon Capture, Utilization and Storage Act 2025

Policy instrument

Greenhouse gas

Economic sector

Finance