KUALA LUMPUR (Oct 5): Bursa Malaysia Bhd has launched the national voluntary carbon market (VCM) handbook to guide local professionals and stakeholders in generating carbon credits that adhere to international standards recognised by the Bursa Carbon Exchange.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said 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.

He said the handbook defines the roles and functions of key entities in Malaysia’s carbon market operations, serving as a reference point for market players.

“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.

“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 here on Thursday, in conjunction with the International Greentech & Eco Products Exhibition and Conference Malaysia.

The VCM handbook is a collaborative effort between Bursa Malaysia and the Malaysian Green Technology and Climate Change Corporation (MGTC), which was initiated through a memorandum of collaboration signed on Feb 20, 2023.

The VCM handbook was developed in consultation with the Ministry of Natural Resources, Environment and Climate Change (NRECC) and various ecosystem participants.

Muhammad Umar also shared that one of Malaysia’s nature-based projects, the Kuamut Rainforest Conservation Project in Sabah, is nearing its first issuance.

“Soon enough, (it is hoped that) our carbon ‘supermarket shelves’ will be stocked with Malaysian products,” he said.

Pursuant to the above, NRECC minister Nik Nazmi Nik Ahmad said Bursa Malaysia is getting ready to auction carbon credits from the Kuamut Rainforest Conservation Project.

The auction date will be announced once Verra, the world’s leading standards setter for climate action and sustainable development, has issued 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,” he said.

Nik Nazmi also said the government needs nature-based solutions (NbS), which can provide up to 30% of the mitigation required by 2030 to keep the 1.5°C target in reach.

He noted that the VCM would help mobilise public sector finance towards NbS, particularly in the Global South where it is most urgently needed.

He said many state governments have reached out to his ministry for alignment of carbon policies for forest carbon assets, and the NRECC is doing its best to ensure that these discussions take place.

“I wish to also reiterate that our National Carbon Policy is expected to be ready for implementation this year. It will provide, among other things, guidance on carbon trading at the state level,” he said.