METI, JOGMEC and PETRONAS Have Concluded MoC on Cross-Border Transportation of CO2 for CCS Businesses

1. Background

In October 2020, the Government of Japan set a goal of achieving zero greenhouse gas emissions to realize carbon neutrality by 2050, and in April 2021, declared that it aims to reduce greenhouse gas emissions by 46% compared to FY2013 by FY2030. In addition, in the Basic Policy for Realization of GX (Note 1), the Government of Japan indicates that it will support advanced projects that will become role models for developing the business environment toward the start of CCS projects by 2030.
Based on this policy, JOGMEC selected seven projects, including two overseas (in Malaysia and Oceania), as "advanced CCS projects" in June of this year (Note 2), with the goal of starting full-scale CCS projects by 2030. Malaysia, which has an abundance of natural resources, has long been an important partner for Japan, and many energy projects have developed with participation by Japanese companies. Malaysia has an abundance of land suitable for geological storage of CO2, and a project to transport CO2 emitted from Japanese industry to Malaysia for storage is being considered.

2. Outline

In order to undertake transboundary transportation of CO2 to Malaysia, it is necessary to discuss the establishment of rules and an accounting method for calculating CO2 reductions between the two countries. Hence, METI, JOGMEC, and PETRONAS signed the MOC at the 3rd Asia CCUS Network Forum (Note 3) to promote discussions on bilateral CO2 transboundary transportation and storage.
This is based on the statement of the Asia Zero Emissions Community (AZEC) Public-Private Investment Forum hosted by METI, held in Tokyo on March 3, 2023, which recognized that addressing climate change is a common global challenge and that the goal is to promote cooperation toward carbon neutrality/net zero emissions while ensuring energy security. The AZEC is in line with the Asia Zero Emissions Community's (AZEC) commitment to promote cooperation toward carbon neutrality/net zero emissions, while recognizing that addressing climate change is a common global challenge and ensuring energy security. Based on the Asia Energy Transition Initiative (AETI) and other initiatives, we will contribute to the improvement of Japan's energy security and the realization of sustainable economic development and carbon neutrality in Malaysia and other Asian countries. Furthermore, through the framework of the Asia CCUS Network (Note 2), Japan will make use of its CCUS technologies, systems, and know-how to promote knowledge sharing and improvement of the business environment throughout the Asian region.

• (Note 1) Cabinet Decision on the Basic Policy for the Realization of GX
• (Note 2) Full-scale Commencement of Japanese CCS Projects - JOGMEC Selects Projects as Japanese Advanced CCS Projects -
• (Note 3) The Third Asia CCUS Network Forum Held
• (Note 4) "Asia CCUS Network" has launched (June 22, 2021)

MOC exchange ceremony at the third Asia CCUS Network Forum

(left-to-right) Mr. Emry Hisham Yusoff ,Senior General Manager, Carbon Management, PETRONAS, Mr. YOSHIDA Nobuhiro, Parliamentary Vice-Minister of Economy, Trade and Industry, Dr YAMAMOTO Koji, Vice President, Energy Unit, JOGMEC

Division in Charge

Carbon Management Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy