Malaysian Carbon Exchange to Host Historic First Auction of Local Carbon Credits

Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia, will host its first auction of Malaysian carbon credits on July 25, 2024. This auction will feature carbon credits from the Kuamut Rainforest Conservation Project, marking a significant milestone for BCX with its first offering of Malaysia Nature-based Carbon Credits Plus (MNC+).

The Kuamut Project, located in Sabah’s Tongod and Kinabatangan districts, protects and restores 83,381 hectares of tropical forest. It’s a public-private partnership involving 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 (SEARRP). In March 2024, the project issued its first Verified Carbon Units (VCUs) under Verra’s Verified Carbon Standard, reducing emissions by an estimated 800,000 tonnes of CO2 equivalent annually. The project has also achieved a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards.

Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, highlighted the auction’s importance, stating it showcases Malaysia’s commitment to climate action and leadership in the voluntary carbon market. Stephen Rumsey, Chairman of Permian Global, praised BCX’s support and the project’s impact on climate action and financial infrastructure.

The Kuamut Project contributes to 12 of the 17 UN Sustainable Development Goals, alongside its emissions reduction achievements.