BY ALEXANDRA LORNA & NURIN PATRA
KUCHING: The Federal and State Governments must harmonise their laws to ensure seamless cooperation in carbon capture, utilisation and storage (CCUS) activities, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
He said while the CCUS Bill 2025 passed recently in the Dewan Rakyat applies to Peninsular Malaysia and the Federal Territory of Labuan, it does not cover Sarawak and Sabah, as Sarawak has its own legislation governing carbon storage.
“What needs to be harmonised now is how federal and state laws can be aligned to resolve any overlap, and ensure effective cooperation between both levels of government through regulations and other mechanisms,” he said.
He said this after attending a ‘bubur lambuk’ distribution programme at Daruk Al-Amin Surau, Kampung Samariang Jaya Phase 2 here today.
Fadillah, who is also Energy Transition and Water Transformation Minister, stressed that carbon storage would inevitably require federal-state collaboration.
“This will be discussed further, as carbon storage will inevitably require collaboration between the Federal and State Governments.
“The bill will next be presented in the Dewan Negara before being approved by the Yang di-Pertuan Agong,” he said.
On the issue of trans-boundary carbon trading law, Fadillah said regulatory measures must be established to clarify the respective jurisdictions of the Federal and State Governments.
“There are areas under federal authority and others under state authority, so we need to harmonise these through proper regulations,” he added.
Meanwhile, on Non-Revenue Water (NRW), Fadillah said Sarawak qualifies for federal grants as its NRW rate exceeds 40 per cent.
“For states with NRW above 40 per cent, the government provides grants to replace old and deteriorating pipes, as well as install new water meters.
“Sarawak falls under this category, meaning our NRW rate is relatively high,” he said.
He said states with an NRW rate below 40 per cent receive a 50 per cent matching grant.
He noted that the NRW reduction initiative has progressed well, with a national target to lower NRW below 35 per cent, aiming for 30 per cent by next year.
Regarding the RM2 billion allocated last year, Fadillah said funds are disbursed in phases.
“The funds are not given in a lump sum but are released in phases.
“States that have achieved their targets spend first, while those receiving grants will receive funding based on their progress, such as appointing contractors and executing the necessary works,” he said.
