The project would involve capturing carbon dioxide from Japan’s heavy industries, transporting it overseas and burying it underground in Malaysia, News.Az reports, citing Kyodo.
Critics argue that carbon capture is more symbolic than effective in tackling climate change and risks diverting attention from proven solutions such as renewable energy expansion.
Malaysia, however, is positioning itself as a regional hub for carbon storage technology. The three-step CCS process involves capturing carbon emissions at the source, transporting the liquefied carbon dioxide and injecting it deep underground for long-term storage. With approximately 81% of Malaysia’s electricity still generated from fossil fuels, environmental groups warn that investing in CCS could distract from urgently needed energy transition efforts.
Japan — one of the world’s largest carbon emitters — intends to ship emissions from sectors including power generation, oil refining, cement, shipping and steel production to Malaysia within the next few years. If successful, the initiative could pave the way for similar projects in other Southeast Asian countries with geological storage potential, such as Indonesia and Thailand.
Opponents argue the plan shifts responsibility for emissions reduction. “It dangerously shifts the burden of climate change onto Malaysia rather than onto Japan,” said Rachel Kennerley, a carbon capture specialist at the Center for International Environmental Law in Washington.
Under the proposed model, emissions would first be captured directly from industrial sources such as power plants or refineries. This could involve retrofitting facilities to channel emissions directly into storage systems or using large vacuum-like structures to extract carbon dioxide from exhaust streams. The captured carbon dioxide would then be separated from other gases, liquefied and transported by specially designed ships.
The likely storage site is in depleted offshore gas fields near Sarawak, on the Malaysian side of Borneo. Once injected underground, the storage sites would require long-term monitoring to detect potential leaks.
Supporters of carbon capture — including some governments and major energy companies such as Exxon Mobil and Shell — argue the technology can help buy time for industries and economies to transition toward cleaner energy sources.
Similar efforts are underway elsewhere. The European Union’s first offshore carbon storage facility, designed to transport emissions from Denmark to be stored beneath the North Sea, is expected to begin operations by mid-2026. Norway has also launched a facility to test cross-border carbon shipments.
Still, skepticism remains high. Grant Hauber of the Institute for Energy Economics and Financial Analysis described the surge in interest in carbon capture as “an almost fantastical theoretical uptick,” adding that it “offers a tantalizing promise that just won’t deliver.”
The International Energy Agency recognizes carbon capture, utilization and storage as one tool in the climate mitigation toolkit. However, in its latest Net Zero Emissions scenario, the agency projects that CCS would account for less than 5% of global emissions reductions by 2050.
