Malaysia carbon exchange to auction first local nature-based carbon credits in July

The Malaysia Carbon Exchange (BCX) will auction its first batch of locally generated carbon credits on July 25. This event marks the expansion of its product offering to include local carbon credits in addition to global carbon credits. And it will be the first time that "nature-based carbon credits" are the main subject of the transaction.

However, in the long term, Malaysia's development of the carbon credit market will face the dilemma of balancing economic growth with environmental protection, as well as challenges related to the quality of carbon credits.

Originate from rainforest protection project, certified by the Verra standard
These carbon credits come from the Kuamut Tropical Rainforest Protection Project in the state of Sabah. The project aims to conserve and restore the rainforests in the Tongod and Kinabatangan regions, covering an area of approximately 83,381 hectares. In March 2024, the project was recognized as Verified Carbon Units (VCUs) by passing the Verra carbon verification standard. It is estimated to reduce annual carbon dioxide equivalent emissions by 800,000 tons.

Datuk Muhamad Umar Swift, the CEO of Bursa Malaysia, stated in a press release that given the country's vast potential in both nature-based and technology-based carbon credits, he hopes the auction will spark interest from domestic and international businesses and attract more investment in carbon credit projects.

Original Link: https://www.reccessary.com/en/news/sg-market/malaysia-carbon-exchange-to-auction-first-local-nature-based-carbon-credits-in-july