Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia Bhd, successfully conducted its inaugural Malaysian carbon credit auction on 25 July. This significant event featured carbon credits from the Kuamut Rainforest Conservation Project in Sabah.
Distance view of Bornean Pygmy Elephant in Kuamut Rainforest, Sabah, Malaysia. AI generated picture.
This auction marks a pivotal moment, as it is the first Malaysian nature-based carbon project to be admitted onto the BCX. It sets a crucial benchmark price for voluntary carbon credits from Malaysian nature-based projects, with contracts cleared at $10 each.
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Datuk Muhamad Umar Swift, the CEO of Bursa Malaysia, emphasised the necessity for Malaysia to adopt a compliance carbon pricing mechanism to foster sustainable demand and fair pricing for domestic carbon credits. He highlighted that such mechanisms must be carefully balanced to support decarbonisation efforts while ensuring the viability of businesses, maintaining the principle of a just transition.
The Kuamut Rainforest Conservation Project has gained international acclaim, being recognised as one of the world's top improved forest management projects by BeZero Carbon. It delivers significant climate, community, and biodiversity benefits, earning a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards. Additionally, it supports multiple UN Sustainable Development Goals.
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Nationally, the Kuamut Project is a model of success, demonstrating the potential of Malaysian forests to produce high-integrity carbon credits. It serves as a beacon for other states to preserve forests and natural resources, aligning with Malaysia's commitment to maintaining at least 50% of its land under forest and tree cover, a pledge made at the Earth Summit in 1992.
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