The Center to Combat Corruption and Cronyism (C4 Center) is deeply concerned by the passing of the Carbon Capture, Utilisation and Storage (CCUS) Bill, which disregards and trivialises the significant environmental consequences of the law.
Tabled by Economy Minister Rafizi Ramli, the bill had its first reading in Parliament on 4 March and its second on 5-6 March. The bill aims to govern and catalyse the development of a CCUS industry as a new source of economic growth, in addition to lowering CO2 emissions and reducing the impact of climate change.
Nevertheless, given the research-based criticisms of the technology which demonstrate more failures than successes – with primary issues being health and environmental concerns – it is unlikely that this technology will be able to fulfil its stated goals.
The development of the bill – after its announcement in May 2024 – severely lacked public consultation.
A dialogue session was conducted last June between the Ministry of the Economy and civil society groups, followed by open feedback on the proposed CCUS Bill. There was no further communication or updates on the consultation prior to the first review of the bill.
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This is regrettable, especially after collective feedback highlighted that environmental considerations were not prioritised enough by the bill. For example, no provisions in the bill address liability and accountability regarding the use of the technology, which involves permanent storage that could face issues in the next 50 to 100 years.
Since CCUS technology is linked to significant carbon emissions, the bill should only have been considered after the legislation of a climate change act. This would ensure that the CCUS technology would be governed within a climate change framework that prioritises carbon emission issues.
It appears that the haste in which the bill was passed was due to the announcement of the southern carbon capture and storage (CCS) project and the signing of several Memorandums of Understanding (MoUs) with Japan and South Korea relating to carbon trading for permanent storage in Malaysia.
If so, it is extremely regrettable that the government has prioritised business interests over the wellbeing of our environment and the voices of the people who spoke up against the law.
This law demonstrates the government’s acceptance of waste as a commodity and profit-making opportunity. However, importing waste from other countries only exacerbates the issue of Malaysia being the world’s dumping ground.
Malaysia has been plagued with plastic and e-waste imports, with such waste piling up in illegal landfills causing significant environmental pollution and adversely affecting human health. Accepting carbon waste poses an even bigger risk.
The CCUS Bill is only applicable to the peninsula and Labuan. However, major transparency and accountability issues have already arisen in Sarawak with the development of the Kasawari carbon capture and storage project. Despite numerous calls raised from environmental groups and assembly members during a State Legislative Assembly sitting, the environmental impact assessment for this project remains publicly unavailable.
It is also unclear whether construction was authorised prior to any impact assessment being issued, which is required by law.
Worryingly, the Kasawari project will be the largest carbon capture and storage plant worldwide in terms of size. Without a publicly available impact assessment report, how can government parties and project proponents be held liable in the event of a significant incident at the plant?
Furthermore, the lack of transparency and public participation prior to the development and construction process poses severe corruption risks that must be addressed.
A failed carbon capture and storage project in Gorgon, Australia should be seen as an example. This plant had a similar carbon capture size as Kasawari with a storage capacity of four million tonnes per annum. Despite this, it underperformed by 50% and failed to achieve its targets.
In conclusion, we urge the government to introduce a robust climate change act that can effectively govern carbon emissions in Malaysia and ensure that the gaps in the CCUS Act are thoroughly addressed. C4 Center further calls on the government to reassess the CCUS law while taking the following actions:
- Actively involve academics, reputable civil society groups, NGOs and the concerned public to evaluate the viability of carbon capture projects and empower meaningful public participation
- Conduct preliminary tests on a CCUS project and provide real-time monitoring data for public viewing
- Ensure transparency in CCUS project details through publicly accessible environmental impact and social impact assessment reports for such projects
- Introduce a framework that mitigates corruption risks such as rent- seeking and profiteering activities that could jeopardise the safety and integrity of CCUS projects
- Provide evidence of a comprehensive framework including mitigating solutions for potential leakages and regulatory oversight that takes into account issues of liability and accountability for the next 100 years
- Focus development on the renewable energy sector and invest in this technology to ensure long-term utilisation
C4 Center
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