BCX to Host First Malaysian Carbon Credits Auction

The Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia Berhad, is set to auction its first Malaysian carbon credits on July 25, 2024. This auction will feature credits from the Kuamut Rainforest Conservation Project, marking the debut of Malaysia Nature-based Carbon Credits Plus (MNC+) derived from a domestic forestry initiative. BCX’s portfolio will now include both local and global carbon credits.

The Kuamut Project, located in Sabah’s Tongod and Kinabatangan districts, safeguards 83,381 hectares of tropical forest. This project is a collaboration between the Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah, and Permian Malaysia, with support from PACOS Trust and the Southeast Asia Rainforest Research Partnership. In March 2024, the project issued its first Verified Carbon Units (VCUs) under Verra’s Verified Carbon Standard, achieving an annual reduction of 800,000 tonnes of carbon dioxide equivalent. The project also received a Gold Level for Climate status under the Climate, Community, and Biodiversity Standards.

Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, highlighted the significance of this event saying that, It’s a a historic moment as the company introduce the first Malaysian nature-based carbon project on BCX. The auction underscores Malaysia’s commitment to climate action and its leadership in environmental initiatives. He also expressed hope that the auction would attract both domestic and international investors to further carbon projects in Malaysia.

Stephen Rumsey, founder and Chairman of Permian Global, praised BCX’s role, saying, BCX is crucial in driving investment in high-impact climate actions like the Kuamut Project.

The Kuamut Project contributes to 12 of the 17 UN Sustainable Development Goals. A briefing on the auction will be held on May 16, 2024. Interested parties can register at the BCX website or contact BCX directly.