BCX Carries Out Malaysia's First Carbon Credit Auction
Highlights
- Bursa Carbon Exchange (BCX) successfully auctioned Malaysia's first nature-based carbon credits from the Kuamut Rainforest Conservation Project.
- The auction sets a benchmark price for voluntary carbon credits in Malaysia.
- BCX calls for a compliant carbon market to advance the growth of the domestic carbon market and support Malaysia's climate goals.
Malaysia has successfully auctioned its first nature-based carbon credits. The Bursa Carbon Exchange (BCX), part of Bursa Malaysia, sold these credits from the Kuamut Rainforest Conservation Project in Sabah.
The auction drew interest from businesses and organisations aiming to offset their carbon emissions. The Kuamut Project, globally recognised for its environmental and social impact, earned a gold-level rating for climate, community, and biodiversity standards. This project signifies how Malaysian forests can generate top-quality carbon credits, support local communities, and preserve biodiversity.
In addition to environmental benefits, the Kuamut Project supports Malaysia's pledge to maintain at least 50% forest cover, made at the 1992 Earth Summit. This project sets an example for other regions to help achieve the nation's climate goals.
While the voluntary carbon market is still in its early stages, BCX believes that a compliant carbon market is essential to accelerating its growth. This would create a steady demand for domestic carbon credits and encourage the development of more carbon reduction projects. By implementing a well-designed compliant mechanism, Malaysia can balance environmental protection with economic growth and ensure a just transition for businesses.
The auction of Kuamut Project carbon credits is a promising step for Malaysia's sustainable future. It shows the country's potential to lead in the global carbon market and contribute to worldwide climate change efforts.
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Source: Bursa Malaysia
