Malaysia launched the country’s very first carbon market on Friday with the intention of providing domestic companies with the opportunity to pursue their climate targets.
The launch is the result of rapidly increasing interest in carbon trading in Asia and growing pressure on businesses to offset their emissions.
Called the Bursa Carbon Exchange, the new Malaysian market will enable participants to buy and sell voluntary carbon credits.
In turn, the credits are to be generated from projects that reduce, remove or result in the avoidance of greenhouse gas emissions.
The new carbon market is set to begin its first trading via auction in March 2023, although the participating companies and projects have not yet been named.
An interesting distinction of Bursa Malaysia that also makes it the first carbon market in the world to have it is that it is Shariah-compliant.