Lok Sabha: Coordinated work on implementation of CCUS with Sarawak, prohibition of regulatory overlap

KUALA LUMPUR, 12 Nov: The Government will clarify the coordination of implementation of carbon capture, use and storage (CCUS) with Sarawak to avoid regulatory overlap and protect the country's economic interests.

Minister of Economy, Akmal Nasrullah Mohd Nasir said the coordination was important given that Sarawak has its own legislative framework, in addition to being a potential storage location for imported carbon dioxide from abroad.

He said that any international cooperation on carbon import and storage should take into account the jurisdiction and interests of both parties to ensure that investments can be carried out in an orderly manner.

"Therefore, in terms of the relationship between import efforts it is indeed within the national administrative framework.

"But at the same time, Sarawak's potential, including in terms of storage facilities, needs to be explored and refined more deeply", he said.

He said this while answering additional questions of Datuk Dr Richard Rapu (GPS-Betong) on the mechanism of policy coordination and governance of carbon yields between the Federal Government and Sarawak at a question and answer session in the Dewan Rakyat, today.

Richard has also raised concerns about possible reductions in taxes or carbon levies as well as uncertainty on investments for foreign companies importing carbon dioxide to be stored in Sarawak's waters.

Commenting further, Akmal Nasrullah said the implementation of CCUS requires sufficient carbon to make investments in the technology sustainable.

He said that this would require understanding and cooperation with foreign countries to develop a more comprehensive carbon collection and storage ecosystem.

He said that careful coordination was also needed in developing cooperation with countries such as Japan, South Korea and Singapore to take into account the interests of all parties.

"For me, we must create a dialogue and also the best possible space to avoid any overlap or loss to the country", he said.

Meanwhile, he explained that the application of the Carbon Capture, Use and Storage Act 2025 (Act 870) is limited to Peninsular Malaysia and Labuan Federal Territory. - TVS