Malaysia Voluntary Carbon Markets need more participation from companies and financial institutions—this was the message conveyed in a recent speech by the country’s Natural Resources, Environment, and Climate Change Minister, Nik Nazmi Nik Ahmad.
In his speech delivered at the Joint Committee on Climate Change (JC3) Conference ‘Journey to Zero’, the minister emphasized Malaysia’s commitment to developing the VCM as a means to support the financing of projects and solutions aimed at reducing, removing, or avoiding greenhouse gas (GHG) emissions.
He pointed out that the participation of companies and financial institutions in VCM would not only help the government achieve its climate goals but also allow them to offset their carbon emissions.
As a signatory to the Paris Agreement, Malaysia is committed to reducing the intensity of greenhouse gas (GHG) emissions across the economy by 45 percent based on gross domestic product (GDP) in 2030 compared to the 2005 level. The voluntary climate goals, known as Nationally Determined Contributions (NDC), are crucial in mitigating the impact of climate change.
By engaging more in the voluntary carbon markets, Malaysian companies and financial institutions can actively contribute to the reduction of GHG emissions and fulfill their corporate social responsibility.
The minister went on to add: “Although Malaysia’s share of global GHG emissions is below 0.8 percent, as a responsible and developing nation, we have pledged to fulfill our climate obligations, and this is reflected in our climate initiatives over recent years.”
One of the factors that contributes to the promising outlook for VCR in the country is the establishment of the Bursa Carbon Exchange (BCX) by Bursa Malaysia, which has witnessed a noteworthy performance, with 150,000 Verra carbon credits being purchased and approximately RM7.7 million worth of carbon credits being sold since its inception.