About

Importance of CCUS to Malaysia

Balancing Economic Growth and Sustainability

Climate Change Mitigation

By capturing CO₂ emissions before they enter the atmosphere, CCUS helps mitigate climate change by reducing the amount of CO₂ released.

According to the Emission Index, Malaysia accounts for 0.69% of global emissions and has consistently ranked as the 29th largest emitter of greenhouse gases worldwide since 1990. Over this period, its annual emissions have risen at a compound annual growth rate (CAGR) of 2.4%.

Malaysia has targeted to reduce carbon intensity against GDP by 45% by 2030 compared to 2005 levels. To facilitate the achievement of Nationally Determined Contribution (NDC) targets, Malaysia will develop a National Adaptation Plan and an NDC Roadmap.

*Source: Ministry of Natural Resources and Environmental Sustainability

Meeting Emission Reduction Targets

Malaysia has targeted to reduce carbon intensity against GDP by 45% by 2030 compared to 2005 levels.

The revised NDC now addresses seven greenhouse gases, a significant expansion from the three covered in the initial NDC. To facilitate the achievement of NDC targets, Malaysia will develop a National Adaptation Plan and an NDC Roadmap.

Ensuring Energy Security

In balancing the energy trilemma of security, affordability and sustainability, gas is expected to play a crucial role in Malaysia’s energy transition. This is emphasised in the recent National Energy Transition Roadmap (NETR), where gas is expected to constitute 56% of Malaysia’s total primary energy supply for electricity generation by 2050.

The implementation of CCUS in Malaysia will enable the ongoing utilisation of gas as a transitional fuel and a cleaner alternative to coal, while subsequently mitigating its environmental effects. This ensures Malaysia’s energy security is safeguarded throughout the energy transition.

CCUS as A New Source
of Growth

CCUS as A New Source of Growth

CCUS has the potential to stimulate the development of new industries through the innovative use of captured CO₂. Applications such as CO₂-cured concrete and e-fuels, including e-kerosene and e-methanol, represent significant opportunities for CO₂ utilisation. Furthermore, sectors such as blue hydrogen and ammonia production also present promising avenues for economic expansion.

Sustaining Decarbonisation Efforts

CCUS can be employed in the power generation sector as well as Malaysia’s hard-to-abate sectors such as cement manufacturing, steel production and chemical processing. These sectors contribute greatly to the economic growth of Malaysia through the continual export of goods.

At the same time, these industries also contribute a significant portion of Malaysia’s total greenhouse gas (GHG) emissions. The implementation of CCUS in Malaysia will help to reduce emissions from these industries, therefore assisting Malaysia in achieving a low-carbon economy.

CCUS to Empower Rakyat

Carbon Capture, Utilisation and Storage (CCUS) plays a critical role in supporting economic growth by balancing environmental objectives with industrial development. Here is an overview of how CCUS contributes to economic growth:

Sustainable Economic Development

CCUS enables industries to expand while reducing their carbon footprint. By capturing and storing carbon dioxide (CO₂) emissions, Malaysia can continue developing its energy and industrial sectors sustainably. This approach aligns with global climate commitments and maintains economic momentum.

Job Creation and Innovation

Investments in CCUS infrastructure, technology and projects stimulate job creation in sectors such as construction, engineering, research and development (R&D), and technology deployment. This drives economic growth by fostering innovation in clean technologies and creating demand for new skills. By advancing CCUS technologies, Malaysia can position itself as a leader in innovative climate solutions within the region, enhancing its global standing and opening up new markets for Malaysian technology and expertise. Additionally, CCUS can generate new business opportunities in renewable energy, energy efficiency and carbon credit trading, significantly boosting Malaysia’s GDP and creating approximately 200,000 jobs.

Industrial Competitiveness

As regulations on carbon emissions tighten, industries face higher costs without clean technologies. CCUS enhances competitiveness by enabling companies to comply with stricter environmental standards while maintaining productivity. This strengthens the industrial base and attracts investments.

Attracting Green Investment and Funding

By investing in CCUS, Malaysia can access green financing and international investments aimed at supporting low-carbon technologies. This provides access to funds from international organisations and investors focused on climate-friendly projects. By positioning itself as a regional hub for CCUS, Malaysia can attract substantial investments, potentially generating additional value of USD 200 to 250 billion over the next 30 years.

Extending The Life of Key Sectors

CCUS supports hard-to-abate industries such as cement, petrochemicals and steel in operating within stringent environmental regulations. This is particularly crucial for Malaysia, where these sectors are vital for revenue and employment. Instead of facing shutdowns or costly transitions, these industries can shift to lower-carbon production models.

New Revenue Streams from Carbon Utilisation

Beyond capture and storage, captured carbon can be repurposed into innovative products like biofuels, chemicals and construction materials. This creates new markets and revenue streams, fostering a circular economy and stimulating growth in emerging sectors.

Enhancing Energy Security

CCUS facilitates the deployment of blue hydrogen (produced from natural gas with carbon capture), reducing dependence on imported fuels. This strengthens energy security and ensures stability while transitioning towards a low-carbon future, protecting the economy from energy price volatility.

Mitigating Environmental and Social Costs

Implementing CCUS helps mitigate economic losses linked to climate change, such as extreme weather events, agricultural disruptions and health impacts. By lowering CO₂ emissions, Malaysia can protect key sectors like agriculture and tourism, ensuring their sustained contribution to GDP.

By leveraging CCUS, Malaysia can lead the global energy transition, secure long-term economic resilience and drive growth in emerging sustainable industries.

Stimulating Economic Growth

The development of CCUS projects could stimulate Malaysia’s economic growth through

New Industry Development

Creating new industries in Malaysia, such as CO₂ transportation, storage management and utilisation technologies.

Investment Attraction

Attracting both domestic and foreign investments, bringing in capital and expertise.

Export Potential

Fuelling export activities when it comes to CCUS technologies, services and knowledge to other countries in the region.

Green Financing Opportunities

Attracting green bonds and climate finance, helping Malaysia tap into the growing global market for sustainable investments.

Improved Economic Resilience

Allowing Malaysia to better protect its existing industries from future carbon regulations and taxes.

Advancing with the Future

The development and implementation of CCUS in Malaysia could drive significant technological progress:

Innovation in capture technologies

Encouraging the development of more efficient and cost-effective ways to capture carbon dioxide from various sources.

Advancements in Storage Techniques

Bolstering improvements in geological assessment, monitoring and long-term storage of carbon dioxide, as well as new materials and methods for storage.

Progress in CO₂ utilisation

Providing research opportunities into new applications for captured carbon dioxide, such as in building materials, chemicals or fuels.

Improvements in Transportation Infrastructure

Fostering the development of efficient and safe CO₂ transportation networks, including pipelines and shipping methods.

Cross-Sector Technological Spillovers

Spurring advancements in innovations in various sectors, such as energy efficiency, materials science and process engineering.

Bolstering Malaysia’s Workforce

The implementation of CCUS technologies would create a range of new employment opportunities across various sectors:

High-Skilled

Roles involving complex problem-solving, innovation and leadership.

(e.g. data scientists, project managers, geologists)

Medium-Skilled

Roles involving specialised technical knowledge and practical skills.

(e.g. plant operators, maintenance technicians, laboratory technicians)

Technical and Vocational Education and Training (TVET)

Enhancing education, training, and skills development for Malaysian workers.

(e.g. construction workers, machine operators, welders)

Training and Education

Nurturing capacity and knowledge in the CCUS sector through training and education, strengthening the workforce for the future.