BANGKOK — Malaysia and Japan are moving forward with a groundbreaking cross-border carbon capture and storage (CCS) initiative, even as experts debate its effectiveness and broader climate impact. The project is set to ship industrial carbon dioxide emissions from Japan to Malaysia for storage in offshore geological formations, marking a first-of-its-kind effort in Southeast Asia.
Malaysia Pushes Carbon Capture Forward
On Monday, Petronas CCS Ventures (PCCSV), a wholly owned unit of state-owned oil and gas giant Petronas, was awarded its first offshore assessment permit for CCS by the Malaysia Carbon Capture, Utilisation and Storage Agency (MyCCUS). The permit covers geological assessments in the Duyong field off Peninsular Malaysia and is the first issued under the newly enacted Carbon Capture, Utilization and Storage Act (CCUS Act 2025), which took effect on October 1, 2025.
The move signals a major step toward positioning Malaysia as a regional hub for CCS and cross-border carbon management. PCCSV has partnered with TotalEnergies and Mitsui & Co. under a Key Principles Agreement (KPA) from July 2025 to advance technical studies of Duyong as part of the Southern CCS offshore hub.
Emry Hisham Yusoff, chief executive of PCCSV, described the permit as “a major step toward developing Duyong into a safe, commercially viable carbon storage site,” enabling the partners to proceed with the necessary studies and move into the front-end engineering design (FEED) phase. The initiative is intended to create “the first-of-its-kind integrated CCS solution for industries in the Asia Pacific region.”
Assessment and development work will comply with the CCUS Act 2025 and its related regulations, including the Offshore Permit and Licensing Regulations 2025. The project also aligns with Petronas’ broader strategy to provide decarbonization solutions and support its net-zero ambitions in the region.
Japan’s Role and Regional Implications
Japan, one of the world’s top carbon emitters, plans to ship emissions from its power, steel, cement, and oil industries to Malaysia. Tokyo estimates that by 2030, the sites will store 20 million tons of carbon annually, roughly 2% of Japan’s total emissions. Malaysia will likely receive compensation per ton of emissions stored, while Japan can count these reductions toward its national carbon output.
If successful, the project may pave the way for other Southeast Asian nations with carbon storage potential, such as Indonesia and Thailand. However, climate advocates argue that cross-border CCS could shift the environmental burden to host countries while offering limited contribution to global emissions reductions.
Carbon Capture Debate
Carbon capture involves capturing emissions at industrial sources, separating and liquefying carbon dioxide, and transporting it to storage sites, typically underground geological formations. Critics say it is expensive, unproven, and may distract from more effective measures, such as expanding renewable energy capacity.
Rachel Kennerley of the Center for International Environmental Law warns that the project “dangerously shifts the burden of climate change onto Malaysia rather than onto Japan,” potentially turning Malaysia into a “carbon dumping ground.” Ayumi Fukakusa of Friends of the Earth Japan called it “carbon colonialism.”
Supporters maintain that when combined with energy transition strategies, CCS can help countries meet climate goals. Yet even the International Energy Agency forecasts that carbon capture, utilization, and storage will contribute less than 5% of global emission reductions by 2050.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
