Bursa Malaysia to launch voluntary carbon market exchange late 2022

Bursa Malaysia Bhd will launch its Voluntary Carbon Market (VCM) exchange this year to enable companies to purchase voluntary carbon credits from climate – friendly projects and solutions.

The exchange operator said that the inaugural transaction will be by way of auction, said in a statement on Monday.

The statement added that the participation in the VCM will allow companies to recoup their carbon emission footprint and meet their voluntary climate goals.

Moreover, the VCM exchange will allow buyers and suppliers to transact high-quality carbon credits at transparent prices, the statement mentioned.

The VCM supports financing the projects and solutions to reduce, remove, or avoid greenhouse gas (GHG) emissions, in line with growing awareness of climate action.

“Stakeholder engagement is key in facilitating greater understanding among industry players to enable their participation in the VCM Exchange,” said Bursa Malaysia CEO Datuk Muhamad Umar.

VCM exchange will aggregate carbon credits that share similar traits and fundamentals, with vintages 2016 onwards, the exchange stated.

The exchange will adopt the Verified Carbon Standard or Verra to ensure high solidity will receive through the VCM exchange.

Noteworthy, Verra is a widely recognised standard in the voluntary carbon market, accounting for nearly 70% of voluntary carbon credit issuances globally.