Malaysia to introduce landmark Carbon Capture Bill to tackle climate change

The Economy Ministry has tabled the Carbon Capture, Utilization, and Storage (CCUS) Bill 2025 to regulate carbon management in Malaysia, supporting the country’s climate commitments under the Paris Agreement. The Bill proposes establishing the Malaysian Carbon Capture, Utilization, and Storage Agency to oversee licensing, safety protocols, and compliance.

Carbon Capture Bill

It mandates permits for carbon storage, transportation, and import activities. Companies must pay levies for long-term monitoring, with violations punishable by up to RM2 million in fines and five years in prison. The legislation will apply to Peninsular Malaysia and Labuan, with state consultations for other regions.

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