Hazland Abang Hipni

Sarawak aims for its first carbon capture, utilisation and storage( CCUS) project by 2028, at the offshore Kasawari oil field.

This effort repurposes oil and gas resources as Sarawak pursues net-zero and new energy opportunities.

State Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni said the legal groundwork for the industry was already complete.

“ We have completed all necessary legislation and ordinances to enable this

industry.

“ For example, CCUS involves land legislation, and we have passed the Land Code amendments in the State Legislative Assembly so that Sarawak can undertake the CCUS industry and ensure that all carbon storage rights belong to Sarawak,” he said.

The model allows captured carbon from countries like Japan and South Korea to be transported to Sarawak and stored in depleted offshore wells.

A PLACE FOR CARBON

Rather than leaving the former production sites idle, Sarawak intends to treat the underground formations as storage assets, with companies paying fees to use the space.

“ Industries from Japan, Korea and

elsewhere will pay rental to the Sarawak government through Petroleum Sarawak Berhad( Petros), the State’ s oil and gas asset manager.

“ The first CCUS project is expected to involve Petronas and Mitsubishi,” he said.

This development could give Sarawak a foothold in regional carbon management and extend the usefulness of its petroleum infrastructure.

Hazland said energy ambitions require closer cooperation between government, industry, academia and communities.

“ We now speak of a‘ quintuple helix’ by including the community,” he said.

For Sarawak, CCUS aims to balance its petroleum-based economy with the need to manage emissions as countries shift toward lower-carbon energy.

SABAH aims to turn its environmental assets into economic opportunities, stepping up efforts to attract private capital for sustainable development projects.

Chief Minister Datuk Seri Hajiji Noor said Sabah seeks long-term investors supporting projects that deliver financial returns and improve social and environmental outcomes.

“ As we align with Malaysia’ s economic objectives, our commitment to growth remains unwavering. Sabah is open for business,” he said at the Sabah Asia- Pacific Impact Investing for Sustainable Development Summit.

The two-day event focused on potential investments in renewable energy, green finance, sustainable tourism, the blue economy, nature-positive agriculture

, and community development.

Hajiji said impact investment offers alternative development funding while integrating environmental considerations into economic activity.

“ Impact investing means deploying capital into investments that generate measurable social and environmental benefits along with financial returns.”

GROWTH AND CONSERVATION

He said Sabah’ s forests, marine ecosystems and biodiversity gave the State a strong foundation for attracting investors interested in nature-based and low-carbon opportunities.

Nearly 30 per cent of Sabah’ s landmass is designated as Totally Protected Areas.

“ We remain a net carbon sink, supported by extensive forested areas that strengthen Malaysia’ s carbon-absorption capacity.”

However, Hajiji acknowledged Sabah’ s development needs remain substantial, with improvements in connectivity, utilities, and economic opportunities still required.

“ We need better roads, reliable electricity, cleaner water, and more economic opportunity.”

He said Sabah must move beyond treating development and environmental protection as competing priorities.

“ The question is not sustainability or development, but how sustainability becomes the engine of economic growth.”

Hajiji said closer cooperation with regional and international partners would be important in bringing investment, technology and expertise into Sabah’ s sustainable development agenda. – @ green