Dewan Rakyat Approves Carbon Capture Bill


 


The Dewan Rakyat unanimously passed the Carbon Capture, Utilisation, and Storage (CCUS) Bill 2025 today, paving the way for investment opportunities and economic growth.
The Bill was approved after its third reading by Economy Minister Rafizi Ramli.
During the winding-up speech, he said the government would not be funding CCUS facilities.
“(This is because) the government is considering the introduction of a carbon tax for heavy industries like steel in the near future. Once a carbon tax is in place, companies or individuals will have to pay for carbon storage.
“For example, if the carbon tax is set at US$50 (RM220) per tonne, companies can either pay the tax or use the same amount to fund carbon storage. This creates a strong business opportunity, attracting investors to develop CCUS infrastructure,” Rafizi (above) said.
During the presentation of Budget 2025 last year, the government announced plans to introduce a carbon tax on the steel and energy industries by 2026 to encourage low-carbon technologies and promote sustainable solutions.
Rafizi added that Malaysia can still leverage its depleted oil fields to create new industries like CCUS.
“For instance, there are many depleted oil fields that can be repurposed for gas reinjection. This will benefit the government, strengthen the economy, create jobs, and stimulate economic activity,” he said.
The establishment of a CCUS hub can attract heavy industries like steel, which require CCUS solutions, in addition to enhancing the potential of coastal states.
The CCUS Bill was developed based on a whole-of-nation approach, and the Economy Ministry has set up a national CCUS governance structure to ensure that CCUS-related activities align with cabinet decisions.
This governance structure consists of a steering committee, a technical committee, and five focus groups.
Led by the Economy Ministry, it includes representatives from various ministries, departments, and relevant agencies, along with state governments, academics, and industry players.
- Bernama


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