KUALA LUMPUR: Bursa Carbon Exchange (BCX) will host an auction of its first Malaysian carbon credits from the Kuamut rainforest conservation project on June 25,
This signifies an achievement for BCX as it introduces its initial Malaysia Nature-based Carbon Credits Plus (MNC+) derived from a domestic forestry initiative, broadening BCX's product range to encompass local carbon credits alongside its existing global offerings.
The initiative involves collaboration between the Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah, and Permian Malaysia, the project lead.
It has operational backing from PACOS Trust and the Southeast Asia Rainforest Research Partnership (SEARRP).
Located in the Tongod and Kinabatangan districts of Sabah, the project aims to conserve and rehabilitate 83,381 hectares of tropical forest.
Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift said the introduction of carbon credits from the Kuamut project marks a milestone, showcasing the country's environmental stewardship and emphasising the importance of the voluntary carbon market (VCM) in the nation's climate agenda.
"This is a historic moment as we welcome the first Malaysian nature-based carbon project onto BCX.
"It signals to the world that Malaysia is serious about climate action and its climate ambition. We are committed to advance the transition towards a lower carbon economy by developing a supportive VCM ecosystem through BCX," he added.
Umar hopes that the auction will attract increased attention from both domestic and international business sectors, encouraging investment in additional carbon projects in Malaysia.
In March 2024, the project achieved its first issuance of Verified Carbon Units (VCUs) under Verra's Verified Carbon Standard (VCS), resulting in an estimated annual reduction of 800,000 tonnes of carbon dioxide equivalent (tCO2e).
Additionally, it provides tangible benefits for climate, community, and biodiversity, earning a Gold Level for Climate status under the Climate, Community, and Biodiversity (CCB) Standards.
The Kuamut project currently contributes to 12 out of the 17 goals and targets outlined in the UN Sustainable Development Cooperation Framework, along with measurable emissions reductions.