Bursa Malaysia to launch voluntary carbon market exchange by year-end

31 October 2022

On 15 August 2022, Bursa Malaysia Securities Berhad (“Bursa Malaysia”) announced that it will be launching the Voluntary Carbon Market (“VCM”) exchange later this year. Through Bursa Malaysia’s VCM exchange, both buyers and suppliers will be able to transact high-quality carbon credits at transparent prices. Bursa Malaysia intends to offer standardised carbon credit products for trading via a rules based VCM exchange.

By year-end, a supply of carbon credits is to be sold by way of auction to interested buyers. The auction will enable price discovery for the new standardised carbon credit products. The clearing price from the auction will establish a baseline demand for carbon credits in Malaysia, which will provide a reference point for secondary trading.

Bursa Malaysia will adopt the Verified Carbon Standard, better known as Verra. Verra is a widely recognised standard accounting for nearly 70% of voluntary carbon credit issuances globally. Bursa Malaysia had signed an MOU with Verra in May 2022, which focuses on capacity building.

Bursa Malaysia invites interested project developers and project proponents to submit their interest to supply carbon credits for the auction, as well as for the VCM exchange in the medium and long-term period. Corporate buyers who would like to participate in the auction and purchase carbon credits are encouraged to reach out to Bursa Malaysia to register their interest.