Malaysia has taken a significant step toward green growth and carbon reduction with the unanimous passage of the Carbon Capture, Utilization and Storage (CCUS) Bill 2025 in the Dewan Negara. The bill, approved after its third reading by Economy Minister Datuk Seri Rafizi Ramli, lays the foundation for large-scale carbon capture initiatives aimed at curbing emissions and accelerating the nation’s transition to a low-carbon economy.
As part of Budget 2025, Malaysia will introduce a carbon tax on the steel and energy industries by 2026, encouraging businesses to adopt low-carbon technologies and invest in clean energy solutions. The bill also supports the establishment of a CCUS hub in the East Coast region, particularly in Kertih, which will serve as a catalyst for green industrial growth.