Bursa Malaysia Bhd, the nation’s stock exchange, has launched Malaysia’s first nature-based carbon credit auction to expedite the development of domestic carbon projects. This initiative, carried out through its subsidiary, Bursa Carbon Exchange (BCX), featured the inaugural auction of Malaysian carbon credits from the Kuamut Rainforest Conservation Project in Sabah.
This milestone marks the debut of Malaysia’s first nature-based carbon project on the BCX, underscoring the country’s capability to develop carbon projects that meet international standards. The auction set a benchmark price for voluntary carbon credits from Malaysian nature-based projects, with the domestic forest protection and regeneration project clearing at MYR 50 (USD 11) per contract. The Kuamut Project has received international recognition, being rated among the top improved forest management (IFM) projects globally by the carbon rating agency BeZero Carbon. The auction attracted bids primarily from major corporations, including BBB Asia Capital, CIMB Bank, Eco Green Carbon Ventures, Gas Malaysia, Maybank, Petronas, TROX Malaysia, and Yinson Holdings.
The Kuamut Project holds national significance for Malaysia, demonstrating the ability of Malaysian forests to produce high-integrity carbon credits. As a pioneering project for local forestry-based carbon credits, it sets a precedent for other states to preserve their forests and natural resources while contributing to the nation’s goal of maintaining at least 50% of land under forest and tree cover. Bursa Malaysia acknowledges the evolving nature of the Malaysian voluntary carbon market and emphasizes the importance of leveraging established interventions to achieve global net-zero goals. It is noted that nature could contribute one-third of the global emissions reductions required by 2030.
(Sources: Bursa Malaysia; The Star)
