Malaysia Carbon Market Association Collaborates With Four ASEAN Bodies To Advance Regional Carbon Trading Goals

The Malaysia Carbon Market Association (MCMA) has teamed up with key organizations from ASEAN countries to create a shared approach to carbon trading. The partnership includes the Singapore Sustainable Finance Association (SSFA), the Indonesia Carbon Trade Association, the ASEAN Alliance on Carbon Markets, and the Thailand Carbon Market Club. This collaboration, formalized through a Memorandum of Cooperation (MoC), aims to establish the ASEAN Common Carbon Framework (ACCF), a unified system to streamline carbon trading across the region.

As the third-largest carbon trader globally, this agreement will boost efficiency, support the shift to green finance, and ensure ASEAN’s competitive edge on the world stage. The initiative aligns with Malaysia’s preparations for its ASEAN Chairmanship in 2025 and reinforces its target to cut carbon emission intensity by 45% from 2005 levels by 2030.

Minister of Natural Resources and Environmental Sustainability, YB Nik Nazmi NikAhmad, said in a statement, “This collaboration reflects Malaysia’s growing recognition of the urgency to address climate change, and is part of the initiatives that we hope to potentiallyoperationalise as the ASEAN Strategy for Carbon Neutrality when Malaysia takes overthe chairmanship of ASEAN in 2025. The ACCF is both timely and essential as itaspires to unlock carbon project opportunities that is unique to the ASEAN region and atthe same time, create stronger demand signals through interoperable carbon markets inthis region, allowing us to build an integrated, efficient, and credible carbon market,fostering regional cooperation and accelerating low-carbon investments.”

ASEAN, home to over 600 million people and spanning 4.5 million square kilometers, stands as a global economic giant. In 2023, the region’s combined GDP reached an impressive USD 3.8 trillion, making ASEAN the fifth-largest economy in the world. With rapid growth and strategic developments, projections suggest ASEAN will climb to become the world’s fourth-largest economy by 2030, further solidifying its influence on the global stage.

ASEAN’s unified carbon market framework, bolstered by strategic partnerships, aims to create unique regional opportunities in carbon projects while signaling a strong global demand for carbon credits. This interoperable system will expand supply and demand dynamics, foster a cohesive carbon ecosystem, and support ASEAN’s green finance goals.Malaysia, positioning itself as the “Epicentrum of Growth,” is committed to driving ASEAN’s integration for generations to come. The initiative enhances regional green value chains, boosts market liquidity, and supports the implementation of Nationally Determined Contributions (NDCs) across ASEAN Member States.

At COP29, the Malaysia Pavilion, led by the Ministry of Natural Resources and Environmental Sustainability (NRES) and implemented by the Malaysian Green Technology and Climate Change Corporation (MGTC), showcases the nation’s commitment to sustainability. Key supporters include Tenaga Nasional Berhad (TNB), PETRONAS, Malaysian Palm Oil Council (MPOC), FGV, Sime Darby Plantation, Maybank, BPMB, Kloth Wear, and De Carton.