BURSA Malaysia Bhd has launched the national voluntary carbon market (VCM) handbook to guide local professionals in generating carbon credits that adhere to international standards recognised by Bursa Carbon Exchange.

Its chief executive officer Muhamad Umar Swift said as Malaysia shifts towards a lower-carbon economy, the VCM handbook would guide entities keen on participating in carbon market project development and Malaysia’s VCM.

He said the handbook defines the roles of key entities in Malaysia’s carbon market operations.

“With the increasing prominence of carbon offsets and carbon markets globally, it is imperative Malaysia act on the nation’s untapped potential by developing its VCM ecosystem and implementing high-quality carbon projects.

“This VCM handbook is a critical step in ensuring Malaysia’s VCM can truly support the country’s net-zero journey,” he said at the inaugural Malaysia Carbon Market Forum 2023 in Kuala Lumpur today, in conjunction with the International Greentech & Eco Products Exhibition and Conference.

The VCM handbook was a collaborative effort between Bursa Malaysia and the Malaysian Green Technology and Climate Change Corporation, initiated via a memorandum of collaboration signed on February 20.

The VCM handbook was developed in consultation with the Natural Resources, Environment and Climate Change Ministry and other ecosystem participants.

Umar said one of Malaysia’s nature-based projects, the Kuamut Rainforest Conservation project in Sabah, was nearing its first issuance.

“Soon enough (we hope), our carbon ‘supermarket shelves’ will be stocked with Malaysian products,” he said.

Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said Bursa Malaysia was preparing to auction carbon credits from the Kuamut Rainforest Conservation project.

The auction date would be announced once Verra, the world’s leading standard setter for climate action and sustainable development, issues Kuamut’s carbon credits.

“This project is commendable as it is being verified for a triple gold labelling under Verra’s co-benefit standard of climate, community and biodiversity,” Nik Nazmi said.

He also said the government needed nature-based solutions that can provide up to 30% of the mitigation effort required by 2030 to keep the 1.5°C global warming limit in check.

He said the VCM would help mobilise public sector finance towards nature-based solutions, particularly in the Global South where they were most urgently needed.

He said many state governments have reached out to his ministry to align carbon policies for forest carbon assets, adding that his ministry was doing its best to ensure these discussions take place.

“I wish to reiterate our National Carbon Policy is expected to be ready for implementation this year. It will provide, among others, guidance on carbon trading at the state level,” Nik Nazmi said. – Bernama, October 5, 2023.