KUALA LUMPUR: Bursa Malaysia Bhd and the Ministry of Natural Resources, Environment and Climate Change (NRECC) have expressed dissapointment over the less participation from Corporates Malaysia (listed companies) in the carbon credits auction and initial trading.
Bursa chief executive officer Datuk Muhamad Umar Swift said while it was happy to have hit the milestones, the advancement of the VCM relies heavily on early participation from Corporate Malaysia.
"I must admit I was rather disappointed and would have liked to see more companies participate in the auction and initial trading.
"Corporate Malaysia, do step up and show your interest to purchase or to produce carbon credits," he said at the launch of Voluntary Carbon Market (VCM) Handbook at the Bursa Malaysia Carbon Market Forum 2023.
He pointed out that its carbon platform Bursa Carbon Exchange (BCX) had carried out its first carbon credit auction with 15 buyers from various industries acquiring a total of 150,000 Verra-registered (Verified Carbon Standard) carbon credits.
In September, the BCX trading platform functionality for continuous trading and off-market transaction went live, with 16,500 units of carbon credits traded by ten companies by the end of the second trading day.
The event, which was held in conjunction with the International Greentech & Eco Products Exhibition and Conference Malaysia 2023, was officiated by Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad.
Nik Nazmi echoed Umar's sentiments and urged for more participation from Corporate Malaysia in supporting the government's environmental, social and corporate governance efforts.
"Similarly, when we increased our green electricity tariff (programme) this year, we also saw that many companies that were talking a lot about climate change, environment and sustainability suddenly also dropped out from the programme.
Nik Nazmi urged Corporate Malaysia to back their sustainability pledges with financial support, stating that a country as large as Malaysia, with its substantial market potential, cannot achieve substantial growth without robust backing from the corporate sector.
The VCM handbook is a collaborative effort between Bursa and the Malaysian Green Technology and Climate Change Corporation.
It was initiated through a memorandum of collaboration signed on Feb 20 this year.
The VCM handbook was developed in consultation with NRECC and various ecosystem participants.
As Malaysia shifts towards becoming a lower carbon economy, the VCM handbook is a relevant guide designed to assist entities keen on participating in carbon market project development and Malaysia's voluntary carbon market, said Umar.
The handbook defines the roles and functions of key entities in Malaysia's carbon market operations, serving as a reference point for market players.
Umar said with the increasing prominence on carbon offsets and carbon markets globally, it is imperative that Malaysia acts on the nation's untapped potential, by developing its VCM ecosystem and implementing high-quality carbon projects.