Bursa Malaysia subsidiary, Bursa Carbon Exchange (BCX), has successfully conducted the nation’s inaugural auction of carbon credits.
These credits originated from the Kuamut Rainforest Conservation Project, located in Sabah.
The auction garnered significant interest from businesses and organizations seeking to reduce their environmental footprint.
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Many participants aimed to offset hard-to-reduce greenhouse gas emissions through carbon credit purchases. The forest protection and regeneration project in Kuamut was sold at a price of RM50 per contract.
Renowned for its excellence, the Kuamut Project has earned global recognition as a top-tier improved forest management (IFM) initiative, as certified by the carbon rating agency BeZero Carbon.
Bursa Malaysia CEO, Datuk Muhamad Umar Swift, expressed enthusiasm about this milestone for Bursa Carbon Exchange: “It has been a long wait for Malaysia to finally witness the auction of the country’s first domestically produced quality carbon credits.”
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He acknowledged that building a robust voluntary carbon market takes time, citing the five-year maturation period of the voluntary renewable energy certificates (RECs) market as a reference.
Due to the intricate nature of carbon project implementation, particularly those involving ecosystems, the carbon market’s growth may be slower compared to the RECs market.
Swift emphasized the importance of establishing a compliance carbon market to accelerate the development of domestic carbon projects.
