Friday 24 May 2024
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KUALA LUMPUR (Feb 20): Bursa Malaysia Bhd is teaming up with Malaysian Green Technology and Climate Change Corporation (MGTC) to build and promote the voluntary carbon market (VCM) ecosystem in Malaysia, following the launch of the Bursa Carbon Exchange (BCX) in December 2022.

"A strong VCM needs a pipeline of carbon offset projects to support an increasing demand by corporates to meet their climate goals," the exchange said in a statement on Monday (Feb 20).

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the partnership with MGTC was aimed at ensuring that "we have a highly liquid market on BCX, to facilitate the nation's journey to net zero.”

He added: "Developing a new market is challenging. These joint initiatives with MGTC will help drive awareness, build know-how, connect participants and catalyse trading interest, which are important in building a successful carbon exchange that would elevate Malaysia’s position as a leader in ESG-related offerings.”

Bursa Malaysia said the two parties would collaborate on three areas which are to identify, to guide, connect, and nurture key players in the carbon market ecosystem, which would be integral in building a robust VCM ecosystem.

The first focus area will be the development of a national VCM handbook that will serve as a resource for professionals and stakeholders in the industry, by supporting and guiding them with relevant information to generate carbon credits using international standards acceptable to the BCX.

The second focus will be the creation of a directory of carbon industry service providers which will serve individuals and organisations in the VCM industry by listing project developers, validation and verification bodies, financiers, and technical experts, making it easier for interested parties to connect and collaborate.

“Both the handbook and directory are important and necessary tools to scale up Malaysia’s carbon credit supply, which is still at nascent stage,” said Bursa Malaysia.

Thirdly, both parties would look into enhancing technical expertise and knowledge sharing among ecosystem players, where Bursa Malaysia will be organising the inaugural Malaysia Carbon Market Forum in conjunction with the International Greentech & Eco Products Exhibition & Conference Malaysia.

Edited ByS Kanagaraju
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