On August 1, 2025, Malaysia published the Carbon Capture, Utilization and Storage (CCUS) Act 2025, establishing a legal framework for carbon capture, utilization, and storage activities—particularly involving carbon dioxide—in Peninsular Malaysia. Sabah and Sarawak are expected to introduce their own CCUS laws. The enforcement date will be set by ministerial notification, with detailed operational requirements to follow in upcoming regulations, guidelines, and standards.

The Act creates the Malaysia CCUS Agency, tasked with managing and monitoring CCUS activities, maintaining carbon storage records, and overseeing compliance.

Key provisions include:

· Registration: Entities importing, transporting, or utilizing CO₂ must register with the CCUS Agency. CO₂ imported for storage cannot be repurposed for utilization.

· Storage Permits: Required for activities such as geological assessments, with obligations to:

o Follow approved CCUS practices.

o Ensure CO₂ streams are predominantly carbon dioxide with no added waste.

o Maintain detailed registers of CO₂ quantities and properties.

· Offshore Storage: Requires environmental monitoring, a storage complex monitoring plan, and payment of an injection levy.

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