Malaysia’s voluntary carbon market exchange is poised to make history with its inaugural auction of Malaysian carbon credits scheduled for July 25, as announced by stock exchange operator Bursa Malaysia on Monday (May 13).
The auction, facilitated by the Bursa Carbon Exchange (BCX), will feature carbon credits sourced from the Kuamut Rainforest Conservation Project. This initiative safeguards and rehabilitates 83,381 hectares of tropical forest in the Tongod and Kinabatangan districts within the eastern Malaysian state of Sabah, Bursa Malaysia reported.
This auction represents a significant milestone for BCX as it marks the debut of Malaysia’s nature-based carbon credits generated through a domestic forestry project. It signifies a notable expansion of BCX’s product portfolio, transitioning from exclusively offering global carbon credits to including locally generated carbon credits.
This venture not only promotes environmental conservation and sustainability but also underscores Malaysia’s commitment to fostering domestic climate action initiatives. By showcasing and trading local carbon credits, BCX contributes to the growth of Malaysia’s carbon market while advocating for the preservation of its natural landscapes.
Muhamad Umar Swift, CEO of Bursa Malaysia, emphasized the importance of the voluntary carbon market in the nation’s climate agenda, hailing the offering of the Kuamut Project carbon credits as a significant milestone. This move, he stated, underscores Malaysia’s environmental leadership and commitment to climate action, signaling its seriousness in pursuing ambitious climate goals.
He further highlighted that the BCX, the world’s first syariah-compliant carbon exchange, launched in December 2022, aims to enhance transparency and facilitate companies in purchasing carbon credits to offset greenhouse gas emissions. The exchange successfully conducted its inaugural carbon credit auction in March of the previous year, setting the stage for further advancements in Malaysia’s climate efforts.
