Regional Carbon: Bursa Malaysia conducts first auction for nature-based carbon credits
Friday, July 26 2024 - 01:16 PM WIB
By Romel S. Gurky
Bursa Malaysia Berhad's subsidiary, Bursa Carbon Exchange (BCX), on Thursday successfully conducted its first auction of Malaysian nature-based carbon credits from the Kuamut Rainforest Conservation Project in Sabah. The auction, cleared at RM50 per contract, marks a significant milestone as the first Malaysian nature-based carbon project admitted on BCX, establishing a benchmark price for voluntary carbon credits in the country.
The Kuamut Project has been recognized internationally and rated highly by the carbon rating agency BeZero Carbon. It delivers substantial climate, community, and biodiversity benefits, earning a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards. The project contributes to several UN Sustainable Development Goals, including health, education, job creation, clean water access, energy access, climate action, and biodiversity protection.
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Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, emphasized the significance of this auction, stating, “It has been a long wait for Malaysia to finally witness the auction of the country’s first domestically produced quality carbon credits.” He highlighted the need for Malaysia to consider implementing a compliance carbon market to accelerate the development of domestic carbon projects, resonating with calls from various ministries and industry players.
Successful bidders in this auction included major corporates such as:
BBB Asia Capital Berhad
CIMB Bank Berhad
Eco Green Carbon Ventures Sdn. Bhd.
Gas Malaysia Berhad
Malayan Banking Berhad
Petroliam Nasional Berhad (PETRONAS)
TROX Malaysia Sdn. Bhd.
Yinson Holdings Berhad
The Kuamut Project sets a precedent for other states in Malaysia to explore preserving their forests and natural resources while contributing to the nation's commitment to maintaining at least 50% of the country’s land under forest and tree cover, a pledge made during the Earth Summit in 1992.
Editing by Alexander Ginting