Bursa Malaysia to introduce carbon market exchange

• Bursa Malaysia Berhad will launch its Voluntary Carbon Market (VCM) exchange later this year which will enable companies to purchase voluntary carbon credits from climate-friendly projects and solutions.
• The VCM exchange can serve as an important lever in realizing Malaysia’s net-zero greenhouse gas emissions aspiration, as well as support the private sector’s voluntary climate commitments and decarbonization journey.
• Participation in the VCM will allow companies to offset their carbon emission footprint and meet their voluntary climate goals.
• The VCM exchange will allow buyers and suppliers to transact high-quality carbon credits at transparent prices.
• Bursa Malaysia also intends to offer standardized carbon credit products for trading via a rules-based VCM exchange.
• There will be distinct product categories for carbon credits derived from nature-based solutions and technologies that reduce or remove carbon emissions. The VCM exchange will aggregate carbon credits that share similar traits and fundamentals, with vintages 2016 onwards.
• To ensure the high integrity of carbon credits offered through the VCM exchange, Bursa Malaysia will adopt the Verified Carbon Standard or Verra.
• Verra is a widely recognized standard in the voluntary carbon market, accounting for nearly 70% of voluntary carbon credit issuances globally.

About

• Bursa Malaysia is the stock exchange of Malaysia.
• It is based in Kuala Lumpur and was previously known as the Kuala Lumpur Stock Exchange (KLSE)