Should CCUS regulation in Sabah be under state control?

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State Control of CCUS Regulation in Sabah is Advocated

Sabah's Deputy Chief Minister, Datuk Seri Jeffrey Kitingan, has asserted that the regulation and implementation of Carbon Capture, Utilisation, and Storage (CCUS) activities within the state should fall under the jurisdiction of the Sabah state government. This position stems from the principle of Sabah's autonomy over its natural resources and the desire to manage CCUS initiatives in accordance with the state's unique requirements and objectives. Kitingan believes Sabah possesses the capability to independently oversee the CCUS industry by developing its own legislative framework and utilising state-owned enterprises.
Sabah's Capacity for Independent CCUS Management

Kitingan has expressed confidence in Sabah's ability to independently manage the CCUS industry, proposing that the state can enact its own laws that align with international standards. Furthermore, he indicated that Sabah is prepared to leverage its state-owned enterprises and government-linked companies to spearhead CCUS projects. This approach aims to ensure that economic benefits generated from CCUS activities directly contribute to the welfare of Sabah's populace and allow for the establishment of a regulatory framework specifically tailored to the state's environmental and economic landscape.
Ensuring Economic Benefits for Sabah's People

A primary argument for state control, as articulated by Kitingan, is the imperative to ensure that the economic advantages derived from CCUS directly benefit the people of Sabah. He highlighted the importance of managing the state's own resources, drawing a parallel to the perceived limited financial returns from oil and gas revenues. This perspective suggests that direct state management will maximise profits and benefits for Sabah's residents, free from the constraints of federal oversight, thereby fostering greater economic self-determination.
Federal Recognition and State Collaboration

The federal government, through Economy Minister Rafizi Ramli, has identified Sabah as one of four states, alongside Terengganu, Pahang, and Sarawak, poised to lead in the CCUS industry. This identification is based on the presence of suitable infrastructure, such as decommissioned oil wells and existing terminal facilities, which are advantageous for CCUS operations. CCUS is being pursued as a pilot project within the National Energy Transition Roadmap, with federal collaboration planned with these identified states to facilitate its smooth implementation.

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Should CCUS regulation in Sabah be under state control?

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