CCUS in Malaysia – Carbon Capture, Utilization and Storage Act 2025 and Carbon Capture, Utilization and Storage (Offshore Permit and Licensing) Regulations 2025

In 1994, Malaysia had acceded to the United Nations Framework Convention on Climate Change 1992 and in 2016, Malaysia acceded to the Paris Agreement 2015 on climate change. In this context, Malaysia has implemented various initiatives and programs under the national climate action plan to ensure that the international climate change goals would be achieved. CCUS is one of the major initiatives in Malaysia under the overarching climate change endeavour, and the Malaysian Government has endeavoured to meet its international obligations, within the context of the energy transition scenario.

On 1 August 2025, the Carbon Capture, Utilization and Storage Act 2025 (“CCUS Act”) came into force and this was followed by the Carbon Capture, Utilization and Storage (Offshore Permit and Licensing) Regulations 2025 (“CCUS Regulations”) on 1 October 2025.

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