Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia Bhd, is set to auction its first Malaysian carbon credits on 25 July. This event represents a key milestone for BCX, introducing Malaysia Nature-based Carbon Credits Plus (MNC+) generated through a domestic forestry project.
Nature of Kuamut Rainforest in Malaysia. AI generated picture.
The carbon credits are sourced from the Kuamut Rainforest Conservation Project, which spans 83,381 hectares in Sabah's Tongod and Kinabatangan districts. This project is a collaboration between the Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah, and Permian Malaysia. It receives operational support from the PACOS Trust and the South-East Asia Rainforest Research Partnership.
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In March 2024, the Kuamut Project achieved its first issuance of Verified Carbon Units under Verra’s Verified Carbon Standard. This resulted in an estimated annual emission reduction of 800,000 tonnes of carbon dioxide equivalent. The project also received a Gold Level for Climate status under the Climate, Community and Biodiversity Standards for its positive impacts on climate, community, and biodiversity.
Bursa Malaysia's CEO, Datuk Muhamad Umar Swift, emphasised the significance of this auction for Malaysia's climate agenda. He stated that the event underscores Malaysia's commitment to climate action and its ambition to transition to a lower carbon economy. Swift expressed hope that the auction would attract both domestic and international interest in investing in carbon projects in Malaysia, given the country's potential for nature and technology-based carbon initiatives.
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This auction marks a crucial step in developing a robust voluntary carbon market ecosystem in Malaysia, reinforcing the nation's environmental leadership and dedication to sustainable development.
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