Bursa Malaysia will launch the Voluntary Carbon Market (VCM) Exchange by the end of 2022 to enable companies to purchase voluntary carbon credits from carbon-friendly projects and solutions. The VCM Exchange will act as a catalyst, encouraging investment in high-quality carbon offsetting projects which will generate positive environmental and societal impact.
“We believe that the VCM Exchange can serve as an important lever in realizing Malaysia’s net-zero greenhouse gas emissions aspiration, as well as supporting the private sector’s voluntary climate commitments and decarbonization journey,” said Muhamad Umar Swift, CEO of Bursa Malaysia.
Corporates can use the carbon credit products to voluntarily offset their existing climate impact and carbon footprint in addition to their internal carbon reduction initiatives. By the end of the year, a supply of carbon credits will be sold via auction to interested buyers.
The auction will act as a vehicle for price discovery for the new standardized carbon credit products that will be listed on the VCM Exchange. The clearing price will establish a baseline demand for carbon credits, acting as a point of reference for secondary trading. It will also provide price signals to support the development of domestic carbon credit projects.
Bursa Malaysia signed an MoU with Verified Carbon Standard (Verra) in May 2022 and will utilize Verra to ensure the high integrity of carbon credits offered on the VCM Exchange and combat potential greenwashing claims. The standards prevent greenwashing claims by subjecting carbon projects to robust assessment, ensuring that environmental claims are appropriately measured and independently verified.
Bursa Malaysia has invited interested project developers and proponents to submit their interest to supply carbon credits for the auction. It has also encouraged corporate buyers who would like to participate in the auction to purchase carbon credits to reach out and register their interest.