Malaysia Enacts Carbon Capture, Utilization and Storage Act 
Malaysia has published the Carbon Capture, Utilization and Storage Act 2025 on August 1, 2025. The Act aims to promote industries related to the capture, utilization, and storage (CCUS) of carbon especially carbon dioxide, and stipulates requirements for permits, functions of authorities and penalties associated with CCUS activities. The Act applies only to Peninsular Malaysia, where Sabah and Sarawak, located on the eastern side of the country, are expected to enact their own CCUS regulations. Enforcement date of the Act will be separately notified by the Minister. Moreover, detailed implementation conditions for CCUS activities are expected to be addressed in forthcoming regulations, guidelines and standards.
CCUS Agency
The Act establishes the Malaysia Carbon Capture, Utilization and Storage Agency (CCUS Agency), which will be responsible for management and monitoring of CCUS activities, collecting information related to carbon storage and performing other duties necessary.
CCUS Activities
Entities intending to import, transport or utilize carbon dioxide must register with the CCUS Agency. Moreover, carbon dioxide imported for storage purposes may not be used for utilization.
Storage activities including preliminary geological assessments require a permit from the CCUS Agency and must comply with the following conditions:
- Comply with prudent CCUS practices specified,
- The carbon dioxide stream shall consist of overwhelmingly of carbon dioxide. No waste or other matter may be added.
- Keep a register of the quantities and properties of the carbon dioxide streams
For offshore storage activities, operators are required to monitor the storage complex and surrounding environment, and prepare a monitoring plan. Additionally, an injection levy is expected to be levied on offshore storage operations.
Download the Act from link below:
https://lom.agc.gov.my/act-detail.php?language=BI&act=870
