Bursa Malaysia Berhad (“Bursa Malaysia”) issued a media release¹ announcing that its subsidiary, Bursa Carbon Exchange (“BCX”), has carried out its first Malaysian carbon credit auction on 25 July 2024. The carbon credits were from the Kuamut Rainforest Conservation Project in Sabah (“Kuamut Project”).
 
According to the media release, the auction of the carbon credits is a significant milestone. First, it is a crucial step in admitting the first Malaysian natured-based carbon project onto BCX. Second, it establishes a benchmark price for voluntary carbon credits for Malaysian nature-based carbon projects.
 
The successful bidders included large Malaysian corporates such as CIMB Bank Berhad, Gas Malaysia Berhad, Malayan Banking Berhad, Petroliam Nasional Berhad and Yinson Holdings Berhad.
 
According to Bursa Malaysia, the Kuamut Project has earned international recognition and is rated best in class, as one of the highest-rated improved forest management projects in the world by the
carbon rating agency BeZero Carbon. The Kuamut Project is of national importance to Malaysia as it demonstrates that Malaysian forests can successfully yield high integrity carbon credits and paves the way for other States to consider preserving their forests and natural resources.
 
Alert by Tham Zhi Jun (Associate) of the Environmental Social and Governance Practice of Skrine.

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