KUALA LUMPUR (July 25): Bursa Malaysia Bhd (KL:BURSA) on Thursday announced eight successful bidders for the country’s first nature-based carbon credits auction brought by its subsidiary Bursa Carbon Exchange (BCX) with carbon credits from the Kuamut Rainforest Conservation project in Sabah.

Among the winners are the national oil and gas company Petroliam Nasional Bhd (Petronas) and three public-listed companies, namely Malayan Banking Bhd (KL:MAYBANK), Gas Malaysia Bhd (KL:GASMSIA) and Yinson Holdings Bhd (KL:YINSON).

The remaining companies are CIMB Bank Bhd - the banking arm of CIMB Group Holdings Bhd (KL:CIMB) - BBB Asia Capital Bhd, Eco Green Carbon Ventures Sdn Bhd and TROX Malaysia Sdn Bhd.

Bursa said the carbon credit auction will allow companies to reduce their environmental impact through several credible pathways, including offsetting greenhouse gas (GHG) emissions.

“The auction of the domestic forest protection and regeneration project was cleared at RM50 per contract,” Bursa said in a statement.

Besides reducing GHG, the Malaysian nature-based carbon credits plus (MNC+) contracts also signify co-benefits in preserving the environment, improving the livelihoods and well-being of local communities and protecting biodiversity.

“With this auction, it also establishes a benchmark price for voluntary carbon credits for Malaysian nature-based carbon projects,” it said.

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. 

For Malaysia, the Kuamut project is of national importance as it demonstrates that Malaysian forests can successfully yield high-integrity carbon credits, noted Bursa.

"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," it added. 

https://www.theedgemarkets.com/node/720470