Bursa Carbon Exchange (“BCX”), a wholly-owned subsidiary of Bursa Malaysia Berhad (“Bursa Malaysia”), plans to host its first auction of Malaysian carbon credits on July 25, 2024. The auction will feature carbon credits from the Kuamut Rainforest Conservation Project (‘Kuamut Project’), marking a significant milestone for BCX. This includes the offering of its first Malaysia Nature-based Carbon Credits Plus (MNC+) from a domestic forestry project and expanding its product offering to include local carbon credits alongside global ones.
The Kuamut Project, located in the Tongod and Kinabatangan districts in Sabah, Malaysia, safeguards and rehabilitates 83,381 hectares of tropical forest. The project, a collaboration between Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah and Permian Malaysia, has received operational support from PACOS Trust and the Southeast Asia Rainforest Research Partnership. The project received its first Verified Carbon Units (VCUs) in March 2024 under Verra’s Verified Carbon Standard (VCS), leading to an estimated annual reduction of 800,000 tonnes of carbon dioxide equivalent (tCO2e). Additionally, the project provides concrete climate, community, and biodiversity benefits, earning a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards.
According to Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, “This is a significant moment as we introduce the first Malaysian nature-based carbon project to BCX. With the voluntary carbon market (VCM) playing a crucial role in the nation’s climate agenda, the availability of the Kuamut Project carbon credits is a major step, demonstrating the country’s environmental leadership. It sends a clear message to the world that Malaysia is dedicated to taking action on climate and achieving its climate goals. We are committed to progressing the shift towards a lower carbon economy by establishing a supportive VCM ecosystem through BCX.”
Discussing the significance of the auction, he stated, “We hope that this auction will generate increased interest from domestic and international businesses to invest in more carbon projects in Malaysia, considering the abundant potential for both nature and technology-oriented carbon project development in this country.”
Stephen Rumsey, founder and Chairman of Permian Global, said: “We are extremely grateful to Bursa Malaysia for their vision and leadership in creating the Carbon Exchange and particularly for their support of the Kuamut Project.”
“Addressing climate action requires comprehensive transformation across systems. This involves the rapid development of impactful, high-integrity actions on the ground, such as the Kuamut Project, as well as establishing the financial framework that drives investment in these crucial activities. BCX is a highly significant component of the climate puzzle..”
The Kuamut Project is currently helping with 12 out of the 17 goals and targets in the UN Sustainable Development Cooperation Framework, and is also reducing emissions in a way that can be proved.
