Activities
Malaysia’s CCUS Initiatives
Energy Transition Levers based on the National Energy Transition Roadmap (NETR): Carbon Capture, Utilisation and Storage (CCUS)
Initiatives:
- Develop policy and regulatory framework to facilitate the implementation of CCUS projects
- Establish governance structure of CCUS by clearly defining roles of each ministry and agency
- Amend existing regulations (e.g Exclusive Economic Zone Act 1984 [Act 311] and National Land Code) to incorporate key enablers for CCUS development
Champion:
Ministry of Economy
Initiatives:
- Establish carbon pricing instrument to drive the adoption of carbon capture technology for stationary emitters
- Enhance incentives to reduce cost, enable access to funding and encourage adoption of CCUS technologies (e.g., public catalytic funds, tax credits, contract for difference)
Champion:
Ministry of Finance
Ministry of Economy
Ministry of Economy
Initiatives:
- Explore collaboration with potential investors and financiers to fund and catalyse investments in CCUS infrastructure for hub development
Champion:
Ministry of Economy
Initiatives:
- Negotiate and introduce transboundary CO2 regulatory agreement encompassing the provisions on transboundary movement and storage of carbon, liability and cost sharing (Exhibit 5.9)
Champion:
Ministry of Economy
Initiatives:
- Set specific mandates within use case (e.g. cured cincrete and urea)
Champion:
Ministry of Investment, Trade and Industry
CCUS Bill
The Malaysian government is taking significant steps to establish a legal framework to support and regulate CCUS activities across the country
Key developments include:
A Memorandum tabled to the Malaysian Cabinet on 21ˢᵗ May 2024, initiating the framework’s preparation.
01
The Ministry of Economy intends to introduce the proposed CCUS Bill to Parliament in November 2024.
02
A presentation to the Malaysian Cabinet on the CCUS framework will precede the parliamentary submission.
03
Malaysia 1st CCUS Conference 2023
Carbon Capture, Utilisation and Storage (CCUS) – A key driver in Malaysia’s energy transition. The conference aimed to shape a sustainable and resilient energy future by focusing on four key pillars:
1. Policies & Regulations:
CCUS Fundamentals: Policies and regulations as critical enablers for CCUS deployment: Comparative view of other jurisdictions
2. Trade & Industry:
Demystifying CCUS Intricacies: Policy & regulation, climate finance & trading, and industry readiness
3. Technology & Infrastructure:
CCUS as a pivotal technology solutions in the net-zero race
4. Risk & Mitigation:
Is CCUS a Safe and Reliable Net-Zero Solution: How can we effectively manage and mitigate the associated risks?
Discover how CCUS can transform Malaysia’s energy landscape and contribute to our climate goals.
Engagement Sessions
13th June 2024
Industry Dialogue with Civil Society Organisations (CSOs), Non-Governmental Organisations (NGOs), and Academic Experts
Organised by the Ministry of Economy, this dialogue session themed “Leveraging Community Synergies for a Sustainable and Just Transition” was aimed at gaining inclusive and comprehensive feedback from NGOs, CSOs and academic experts on Malaysia’s CCUS initiative.
The session featured a keynote speech by Dr. Noranida Binti Zainal, Director of Environmental and Natural Resources Division, Ministry of Economy. Several presentations were also held, which included presentations on the National Energy Transition Roadmap (NETR) and Malaysia’s current policy development on CCUS by the Ministry of Economy, a presentation on CCUS as a Key Driver for a Low Carbon Economy by Universiti Teknologi PETRONAS and a presentation from the perspective of CSOs by Sahabat Alam Malaysia (SAM).
After the various presentations were held, an open dialogue was conducted. Key topics included policy, legislation, environment, financing, carbon trading, carbon tax, safety and public acceptance.
1st July 2024
Industry Dialogue with Hard-to-Abate and Energy Sectors
Organised by the Ministry of Economy, this dialogue session served as a continuation of the previous dialogue session with CSOs and NGOs. Keeping the same theme of “Leveraging Community Synergies for a Sustainable and Just Transition”, the session was aimed at gaining further feedback from the hard-to-abate industries such as the cement, concrete, steel, petrochemical and fertiliser industries, as well as Malaysia’s energy industry, on Malaysia’s CCUS initiative.
Dr. Noranida Binti Zainal, Director of Environmental and Natural Resources Division, Ministry of Economy, delivered a keynote speech, which was then followed by several presentations on policy development on CCUS from the Ministry of Economy as well as the Ministry of Natural Resources and Environmental Sustainability.
An open dialogue was held whereby the key topics that were discussed included policy, legislation, financing, investments, infrastructure, carbon trading, carbon tax and safety.
