KUCHING: Carbon Capture, Utilisation and Storage (CCUS) is an emerging industry with the potential to become a key driver of economic growth in Malaysia.
In stating this, Universiti Malaysia Sarawak (UNIMAS) Senior Lecturer Dr Dzul Hadzwan Husaini said that, in line with global energy transition efforts and climate change management, CCUS plays a crucial role in reducing carbon emissions while ensuring sustainable development.
“Malaysia is fortunate to have geological formations that are suitable for CCUS infrastructure development, particularly in Sarawak.
“This strategic advantage positions Malaysia — particularly Sarawak — as a regional leader in carbon storage technology.
“The implementation of this industry will not only support the country’s net-zero emission goals but also create new job opportunities, stimulate economic activities, and attract high-quality investments,” he told Sarawak Tribune.
He noted that, in a recent session of the Dewan Rakyat, the Minister of Economy presented the CCUS Bill and explicitly affirmed the federal government’s recognition of Sarawak’s rights in this industry.
“He emphasised that CCUS operations in Sarawak must adhere to state laws, which grant the state full autonomy in developing the industry according to its own framework and approach.
“This development marks a significant milestone in ensuring that the industry evolves within a structure that aligns with the needs and aspirations of the people of Sarawak,” he said.
To ensure the success of this industry, he stressed that a comprehensive ecosystem must be established, encompassing infrastructure development, carbon capture technology, a skilled workforce, as well as policies and incentives to support industry growth.
He added that significant capital investment from both public and private sectors will be required to ensure the efficient and competitive development of CCUS at the international level.
“From a legal standpoint, it is crucial that the implementation of CCUS in Malaysia considers the rights and jurisdiction of states, particularly Sarawak and Sabah.
“Under the Malaysia Agreement 1963 (MA63), Sarawak has enacted its own CCUS legislation to regulate carbon storage activities within its borders.
“Therefore, strong cooperation between the federal and state governments is essential to ensure the seamless development of this industry while safeguarding the state’s rights and autonomy,” he said.
Dzul further said that Sarawak, through its state-owned oil and gas company PETROS, is fully prepared to take a leading role in CCUS development.
“PETROS has recognised CCUS as a key business sector and possesses the technical expertise and resources required to manage offshore carbon storage in Sarawak.
“As such, it is imperative that the federal government officially recognises PETROS as the primary CCUS industry regulator in the state,” he said.
Following this, he recalled that recently, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg held discussions with the Minister of Economy regarding Sarawak’s role in the CCUS industry.
He pointed out that it was agreed that offshore carbon storage in Sarawak would be managed by PETROS as the state’s principal resource manager.
“Sarawak seeks to have its status in the CCUS industry recognised similarly to Scotland’s role in carbon storage within the United Kingdom.
“The core principle is that carbon stored in Sarawak’s territory must comply with state laws, while carbon transported into Sarawak for storage involves cross-border aspects that fall under federal jurisdiction,” he said.
With this autonomy, he is positive that the advancement of the CCUS industry in Sarawak is expected to deliver significant economic benefits to its people.
Beyond creating job opportunities, he believes that it will strengthen the energy sector and attract high-quality investments into the state.
Moreover, this development, he added, also has the potential to contribute to state revenue and enhance Malaysia’s competitiveness in the regional low-carbon energy sector.
“The Sarawak government remains open to collaborating with the federal government to ensure that the CCUS industry develops in an orderly manner and aligns with national policies.
“At the same time, the state’s rights to manage its own resources must be upheld in accordance with existing legal provisions,” he said.
Having said that, he assured that the collaboration between the state and federal governments in the CCUS industry will not only benefit the people of Sarawak but also Malaysia as a whole.
“With clear strategies and conducive policies in place, investors will gain greater confidence, green technology will expand at a faster rate, and the nation’s economy will continue to strengthen in the face of global climate change challenges,” he said.
