The Carbon Capture, Utilization and Storage Bill 2025 has been passed by the Dewan Negara and is, at the time of issuance of this client alert, pending Royal Assent. Once the Royal Assent has been provided, the Carbon Capture, Utilization and Storage Act 2025 will be enacted (CCUSA). The CCUSA establishes a robust legal and regulatory framework for CCUS cycle from carbon dioxide capture, transportation, utilization, and storage.
With the Climate Protection Contracts (Klimaschutzverträge) program (also known as Carbon Contracts for Difference program), Germany has been relying on an innovative instrument to ensure (climate-neutral) competitiveness since 2023. Following the largely positive reception of the first bidding round and the European Commission’s approval under state aid law on 24 March 2025, the course is now set for the implementation of the second bidding round. According to the latest reports, the new federal government also seems to want to give the final green light for the continuation of the program.
On 20 February 2025, the Chair of the Australian Competition and Consumer Commission (ACCC), Gina Cass-Gottlieb, announced the ACCC’s compliance and enforcement priorities for 2025/26 at the annual address to the Committee for Economic Development of Australia. Ms Cass-Gottlieb identified a range of industry sectors, as well as specific competition and consumer law issues that will be the focus of the ACCC’s compliance and enforcement activities for 2025/26. Many of these areas continue from last year.
The Department of Climate Change and Environment (DCCE) launched the second draft of the Climate Change Bill (“Bill”) in November 2024 for a public hearing. Some of the key revisions include provisions similar to the EU’s Carbon Border Adjustment Mechanism, adjustments made on the Emissions Trading System (ETS) and carbon tax provisions under the Bill. The Bill is expected to be submitted to Parliament for approval in 2025.
The Joint Crediting Mechanism (JCM) initiative, led by Japan, offers a significant opportunity for Thailand to advance its decarbonization efforts through financial support for cutting-edge technologies. By participating in JCM projects, Thai companies can obtain financial support from the Japanese government, enhancing efforts towards implementing effective greenhouse gas mitigation and removal measures, which in turn aids in achieving Thailand’s declared GHG reduction targets.
The 29th annual conference under the United Nations Framework Convention on Climate Change in Baku, Azerbaijan, concluded with significant strides in climate finance and policy. Billed as the “Finance COP,” there was much anticipation as to whether a new collective goal on climate finance would be set and if the Article 6 rulebook would be finalized.
With its preliminary ruling of 28 November 2024, the European Court of Justice (ECJ) has set clear limits to Germany’s special approach of exempting self-consumption facilities (Kundenanlagen) from grid regulation. Self-consumption facilities not only comprise facilities generating energy for self-consumption, but also facilities for supplying energy to adjacent customers without using the public grid. The ECJ’s reasoning is likely to have general consequences for decentralized supply concepts (at least for the supply of third parties other than the operator of the generating installation), e.g., in commercial and industrial parks.
After months of negotiations, Indonesia and Japan signed a mutual recognition agreement for bilateral carbon trading (MRA) on 18 October 2024. The MRA, which came into effect on 28 October 2024, is expected to support Indonesia and Japan to meet their climate change mitigation efforts, and also to draw investors into the carbon sector for both countries.
Malaysia is slated to have a comprehensive framework to regulate, implement and enforce actions/initiatives that is aimed to lead towards a low-carbon economy. The Ministry of Natural Resources and Environmental Sustainability is leading the initiative for the proposed enactment of the Climate Change Act by issuing a consultation paper to obtain comments and feedback. The introduction of a Climate Change Act is the result of Malaysia’s determination to honor its commitment under the Paris Agreement and also to reduce greenhouse gas emissions in Malaysia.
On 22 August 2024, Legislative Decree No. 1629 was published, amending Article 2 of Law No. 31992, Law for the Promotion of Green Hydrogen, which aims to promote the development of green hydrogen from renewable energy resources.