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THE Dewan Negara has unanimously passed the Carbon Capture, Utilisation and Storage (CCUS) Bill 2025 today, marking a significant step towards fostering investment and spurring economic growth through environmental innovation.
The bill, which passed its third reading with approval from Economy Minister Datuk Seri Rafizi Ramli, sets the stage for a new era of industrial and environmental progress.
In his closing remarks on the bill, Rafizi emphasised the need for a balanced and practical approach to its implementation, highlighting the importance of reducing carbon dioxide emissions while ensuring continued economic prosperity and job creation.
“If we want to keep our economy thriving and ensure that people will continue to have good job opportunities, we must strike a balance in carbon dioxide emissions. We need additional measures beyond natural methods, such as planting and preserving trees, which alone are insufficient,” Rafizi explained.
“This is why CCUS plays a crucial role in our national policy for carbon capture.”
As part of the 2025 Budget, the government has proposed the introduction of a carbon tax by 2026 on the steel and energy industries, aiming to incentivise the adoption of low-carbon technologies across sectors.
Rafizi also noted that the establishment of a CCUS hub would strengthen the economic potential of East Coast states, particularly Kertih, positioning the area as a key industrial centre.
“With CCUS, we can create new industries that will attract other sectors to these states. CCUS will serve as a key driver in decarbonising heavy industries,” he said.
He further explained that state governments would benefit from a range of taxes, including land and business taxes, and the creation of new jobs as a result of the initiative.
Additionally, the establishment of CCUS facilities along the coast would require the construction of terminals, which would generate revenue for state governments through standard fees.
“This is why CCUS offers a new lease of life to the heavy industry sector in the East Coast,” Rafizi added.
The CCUS Bill has been designed with a holistic, nationwide approach, and the Ministry of Economy has put in place a national governance structure to ensure that CCUS activities align with the decisions of the Cabinet.
This governance structure includes a steering committee, a technical committee, and five focus groups, all led by the Economy Ministry, with participation from various ministries, agencies, state governments, academia, and industry stakeholders. – March 25, 2025