Japan and Malaysia Advance Cross-Border Carbon Capture Project Amid Climate Debate

As global debate intensifies over climate change mitigation measures, Japan and Malaysia are preparing to move forward with a cross-border carbon capture and storage (CCS) project. Despite critics questioning its effectiveness, both nations are presenting this as a new option for emissions management.

Under the plan, Japan proposes to capture carbon dioxide emitted from its industrial sectors—such as power generation, oil refining, cement, transportation, and steel industries—and send it in liquefied form to Malaysia.

The carbon is likely to be stored underground in depleted gas fields near the state of Sarawak on the island of Borneo. Experts suggest that if successful, this could pave the way for similar projects in other Southeast Asian nations like Indonesia and Thailand.

The carbon capture process involves three stages: directly capturing emissions from the polluting source, liquefying it for transport via specialized vessels, and finally, long-term storage through underground injection. Long-term monitoring is required to prevent leakage after injection. However, a detailed technical blueprint has not yet been made public.

Some governments and energy companies describe this as a measure to 'buy time' for the transition to clean energy. Cross-border carbon transport and offshore storage projects are also being tested in Europe. However, the International Energy Agency estimates that CCS will contribute less than five percent to total emission reductions by 2050.

Malaysia aims to establish itself as a regional carbon capture hub. A related bill was passed last year, and the Ministry of Finance estimates a potential economic benefit of up to 250 billion dollars over 30 years.

The state oil and gas company, Petronas, is leading the construction of a $1.1 billion offshore carbon storage facility, which is targeted to be operational by the end of the decade. Nevertheless, about 81 percent of Malaysia's electricity is still generated from fossil fuels.

Japan, one of the world's major carbon emitters, is investing in nine carbon storage sites as part of its plan to reduce net emissions, three of which are located in Malaysia. These sites are estimated to store 20 million tons of carbon annually by 2030, which is about two percent of Japan's annual emissions.

Malaysia will be paid per ton of stored carbon, and Japan can deduct that amount from its total emissions. However, critics have labeled this as 'carbon colonialism.'

Ayumi Fukakusa of Friends of the Earth Japan stated that exporting emissions to other countries is not a sustainable solution. Rachel Kennerley of the Centre for International Environmental Law warned that such plans shift the burden of pollution to Malaysia and undermine genuine emission reduction efforts.

According to those who argue that immediate emission reduction measures must be primary in combating the climate crisis, carbon capture is an expensive and unproven alternative. Nevertheless, Japan and Malaysia are pushing it forward as a technological opportunity and economic possibility. Whether this cross-border carbon storage initiative succeeds or generates further controversy now depends on the implementation phase.