KUALA LUMPUR: The Economy Ministry has tabled a memorandum to the Cabinet today to pave the way towards a comprehensive legal framework on Carbon Capture, Utilisation and Storage (CCUS) initiatives.
Economy Minister Rafizi Ramli said a standalone CCUS Bill will be tabled by year-end while pushing for bilateral agreements amid significant progress made by the government in CCUS implementation so far.
“The establishment of a comprehensive and holistic legal framework takes into account the cohesiveness of implementation, ability to attract high impact investments and means to manage risk and liabilities, which resulted in the consideration to establish a standalone CCUS Bill.
“Bilateral agreements are aimed to position Malaysia as a regional Carbon Capture and Storage (CCS) hub to capture opportunities in the era of energy transition,” Rafizi said in a statement.
A standalone CCUS Bill should focus on the value chain and highlight carbon capture, transportation, utilisation, and storage of carbon dioxide (CO2), said the minister.
He also said that CO2 storage activities will initially focus on offshore areas before potentially being implemented onshore, and the suitability of utilising onshore storage is subject to a feasibility study to be conducted at a later stage.
Rafizi believes that Malaysia can be a CCS hub in the region by providing a first-of-its-kind integrated CCUS solution for industries in the Asia Pacific region.
“Failing which, Malaysia will need to wait for another 20 to 30 years before such an opportunity arises again,” he said.
Rafizi emphasised that the development of the CCUS industry in Malaysia will help unlock various socio-economic benefits for the country such as contributing to economic growth, the creation of skilled and high-value job opportunities, and the advancement of new technology and innovation.
