On Thursday, Malaysia’s parliament approved a landmark bill aimed at positioning the country as a global leader in carbon capture, utilisation, and storage (CCUS) technologies.
This framework is designed to drive economic growth by potentially generating up to $250 billion and creating hundreds of thousands of jobs by 2050.
CCUS technology targets the reduction of emissions from fossil fuel consumption in energy production and industrial processes. It captures carbon emissions at their source and stores them permanently in underground facilities.
The technology has received support from major emission-heavy industries and the United Nations’ principal scientific body on climate change as a viable solution for industries experiencing challenges regarding decarbonization.
Nevertheless, some experts and environmental activists criticize CCUS, viewing it as a justification for continued fossil fuel use with questionable efficacy due to its high costs and complexities.
Economy Minister Rafizi Ramli emphasized that the bill will help Malaysia tackle climate change and enhance its standing as a leader in low-carbon technologies in the region.
He cited CCUS as a “new source of economic growth,” positioning Malaysia to become a global pioneer, following Norway’s successful implementation.
Malaysia claims a strategic advantage for CCUS, citing abundant depleted oil reservoirs suitable for carbon dioxide storage.
The legislation sets guidelines for the import and permanent offshore storage of carbon dioxide, effective from March 31. Currently, it applies only to Peninsular Malaysia and the Federal Territory of Labuan, excluding the eastern states of Sabah and Sarawak due to their pursuit of greater economic autonomy.
