Carbon Storage in Malaysia: A Review of the Current Legal Framework and Its Limitations

This study examines Malaysia’s legal framework for carbon storage in light of its Paris Agreement commitments and Nationally Determined Contributions (NDCs). Using doctrinal legal research and comparative analysis with Australia and New Zealand, the paper reviews core statutes including the Carbon Capture Utilization and Storage Act 2025, Environmental Quality Act 1974, National Land Code (Act 828), Town and Country Planning Act 1976, and National Forestry Act 1984. Findings reveal four major gaps: absence of statutory carbon rights, lack of land-use classification for carbon activities, limited permanence provisions, and no legal registry for carbon credits. Voluntary market mechanisms operate in a legal vacuum, raising concerns over enforceability and investor confidence. Drawing on international models, the study recommends enacting legislation to define carbon rights, integrate permanence and MRV standards, and establish a statutory registry. These reforms are critical to aligning carbon storage governance with Malaysia’s climate targets and strengthening its forest policy credibility.