KUALA LUMPUR, July 27 – Bursa Malaysia Berhad (Bursa Malaysia) announced that its subsidiary, Bursa Carbon Exchange (BCX), has carried out its first Malaysian Carbon Credit auction with carbon credits from the Kuamut Rainforest Conservation Project in Sabah.
This milestone represents a crucial step in admitting the first Malaysian natured-based carbon project onto the BCX, thereby showcasing Malaysia’s capacity to develop its own carbon projects complying to international standards.
With this auction, it also establishes a benchmark price for voluntary carbon credits for Malaysian nature-based carbon projects.
“It has been a long wait for Malaysia to finally witness the auction of the country’s first domestically produced quality carbon credits,” says Datuk Muhamad Umar Swift, chief executive officer of Bursa Malaysia.
“Organic growth of the voluntary carbon market will take time to mature,” he added, based on observation of the voluntary renewable energy certificates (RECs) market where organic growth of a nascent market took at least five years to scale.
“Given the complexity of some carbon project implementation compared to renewable energy projects, the carbon market can face a longer lead time to reach the same stage of growth as RECs market, especially when nature-based projects are involved.”
The auction of the domestic forest protection and regeneration project was cleared at RM50 per Contract. Beyond reducing greenhouse gas (GHG), the MNC+ Contracts also signify co-benefits – preserving the environment, improving the livelihoods and well-being of local communities, and protecting biodiversity.
The successful bidders in this auction were mostly larger corporates, including companies such as BBB Asia Capital Berhad, CIMB Bank Berhad, Eco Green Carbon Ventures Sdn Bhd, Gas Malaysia Berhad, Malayan Banking Berhad, TROX Malaysia Sdn Bhd and Yinson Holdings Berhad
The Kuamut Project has earned international recognition and is rated best in class, as one of the highest-rated improved forest management (IFM) projects in the world by the carbon rating agency BeZero Carbon.
The Kuamut Project also contributes to several UN Sustainable Development Goals.
For Malaysia, the Kuamut Project is of national importance as it demonstrates that Malaysian forests can successfully yield high integrity carbon credits.
