Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Berhad, is set to host its first auction of Malaysian carbon credits on 25 July 2024. The auction, featuring carbon credits from the Kuamut Rainforest Conservation Project, signifies a major milestone for BCX on multiple fronts.
This includes the debut of Malaysia Nature-based Carbon Credits Plus (MNC+), derived from a domestic forestry project, and the expansion of BCX’s product lineup to include local carbon credits alongside global ones.
Situated in the Tongod and Kinabatangan districts of Sabah, Malaysia, the Kuamut Project safeguards and rehabilitates 83,381 hectares of tropical forest. It’s a collaborative effort involving the Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah, and Permian Malaysia as the project proponent, with operational support from PACOS Trust and the Southeast Asia Rainforest Research Partnership (SEARRP).
By March 2024, the project had received its initial issuance of Verified Carbon Units (VCUs) under Verra’s Verified Carbon Standard (VCS), reflecting an estimated annual reduction of 800,000 tonnes of carbon dioxide equivalent (tCO2e). Notably, the project also delivers tangible climate, community, and biodiversity co-benefits, earning a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards.
Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, said: “This marks a historic moment as we welcome the first Malaysian nature-based carbon project to BCX. The offering of Kuamut Project carbon credits is a significant milestone for our nation’s climate agenda, underscoring Malaysia’s environmental leadership and commitment to climate action.
“It signifies our dedication to advancing a lower carbon economy by fostering a supportive Voluntary Carbon Market (VCM) ecosystem through BCX.”
Expanding on the auction’s importance, Muhamad Umar noted, “We anticipate this auction will attract heightened interest from domestic and international businesses to invest in more carbon projects in Malaysia, given the country’s abundant potential for nature and technology-based carbon project development.”
Stephen Rumsey, founder and chairman of Permian Global, expressed gratitude to Bursa Malaysia for their role in establishing the Carbon Exchange and supporting the Kuamut Project, emphasising the critical need for comprehensive climate action, which includes both impactful on-ground initiatives like Kuamut and the financial infrastructure driving investment in these endeavors.
The Kuamut Project contributes to 12 of the 17 goals and targets outlined in the UN Sustainable Development Cooperation Framework, in addition to its proven emissions reduction efforts.
Interested parties can participate in a briefing on the Kuamut Rainforest Conservation Project auction scheduled for 16 May 2024. Registration is available at BCX’s website or by calling BCX at +603 2034 7788.
