KUALA LUMPUR (Jan 7): Industry players on Wednesday said a lack of a clear carbon tax mechanism and limited fiscal incentives pose challenges to a wider adoption of carbon capture, utilisation and storage (CCUS) in Malaysia. Malaysia’s carbon tax is pending the tabling of the long-awaited Climate Change Bill. Singapore introduced its carbon tax at S$5/tCO2e before raising it to S$25/tCO2e in 2024. “Carbon price competitiveness is still uncertain ... and that affects the overall picture [business case],” Voon added. Other gaps in CCUS execution being discussed during the forum also include the uncertainty over incentives, and carbon accounting, as well as long-term monitoring and verification requirements.

Source: The Edge Markets January 07, 2026 12:58 UTC