Malaysian stock exchange to launch voluntary carbon market


Bursa Malaysia will launch a voluntary carbon market (VCM) by the end of 2022. This will help increase transparency and enable companies to purchase carbon credits to offset their emissions.

The new Bursa VCM exchange will encourage investments in high-quality offsetting projects and solutions, such as planting trees and the switching to cleaner fuels.

“Stakeholder engagement is key in facilitating greater understanding among industry players to enable their participation in the VCM Exchange…and in order to meet environmental, social and governance requirements required by parties such as lending institutions,” said Bursa Malaysia CEO Datuk Muhamad Umar Swift.

“We believe 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,” he added.

To ensure the credibility of the carbon credits, Bursa Malaysia will adopt the Verified Carbon Standard (VCS), often known as Verra. Verra operates the VCS Program and has issued about 70% of voluntary carbon credits worldwide.

Bursa Malaysia will sell carbon credits by year-end to enable price discovery for the new carbon credit products that will be listed on the VCM exchange.

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Malaysia to become major carbon market in Asia: McKinsey

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