Posted on 13 Oct 2026
A carbon capture pilot project at an East Coast steel plant is set to conclude by the end of 2027, yielding critical cost and emissions data to guide the decarbonisation of Malaysia’s industrial sector, according to the Investment, Trade and Industry Ministry.
In a written parliamentary reply dated Monday (Oct 12), the ministry stated that the project will assess the commercial and technical viability of Carbon Capture, Utilisation, and Storage (CCUS) technology across the iron and steel supply chain, including micro, small, and medium enterprises (MSMEs).
The ministry was responding to a question from Dr V. Sivakumar (PH-Batu Gajah) on government initiatives to help manufacturing SMEs develop auditable carbon emissions data needed to comply with the European Union’s Carbon Border Adjustment Mechanism (EU-CBAM) and global Environmental, Social, and Governance (ESG) standards.
MITI highlighted the iron and steel sector as a priority, noting its significant contribution to industrial process emissions and its exposure to international carbon reporting demands.
"Improving energy efficiency and increasing the use of renewable energy alone will not be sufficient to reduce emissions from steel production, making CCUS an important complementary measure," the ministry stated.
To bolster market readiness, MITI has introduced the i-ESGStart framework to assist companies in adopting sustainable practices and calculating greenhouse gas emissions.
Furthermore, through the Malaysia Steel Institute (MSI), MITI offers industry-specific ESG frameworks, training, and consultancy tailored for SMEs without dedicated sustainability officers. These initiatives aim to produce traceable, auditable carbon data, ensuring local manufacturers retain access to global supply chains and ESG-related financing.
Source:The Star
