Bursa Carbon Exchange (“BCX”) had carried out its first Malaysian Carbon Credit auction on 25 July 2024. This milestone represents a crucial step in admitting the first Malaysian natured-based carbon project onto the BCX, thereby showcasing Malaysia’s capacity to develop its own carbon projects complying to international standards. With this auction, it also establishes a benchmark price for voluntary carbon credits for Malaysian nature-based carbon projects.
The auction attracted participation from businesses and organisations committed to reduce their environmental impact through several credible pathways, one of them by offsetting hard to abate GHG emissions through carbon credits. The auction of the domestic forest protection and regeneration project was cleared at RM50 per Contract. Beyond reducing greenhouse gas (GHG), the MNC+ Contracts also signify co-benefits - preserving the environment, improving the livelihoods and well-being of local communities, and protecting biodiversity.
The successful bidders at the auction were:
The Kuamut Project has earned international recognition and is rated best in class, as one of the highest-rated improved forest management (IFM) projects in the world by the carbon rating agency BeZero Carbon. A key significance of this project is that it delivers tangible climate, community and biodiversity co-benefits, earning itself a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards. The Kuamut Project also contributes to several UN Sustainable Development Goals.
For Malaysia, the Kuamut Project is of national importance as it demonstrates that Malaysian forests can successfully yield high integrity carbon credits. As a lighthouse project for local forestry-based carbon credits, it paves the way for other states to look into preserving their forests and natural resources, while contributing to the nation’s commitment to maintain at least 50% of the country’s land that is under forest and tree cover, a pledge made during the Earth Summit in 1992.
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