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Tag: #VCM

  • Bursa Carbon Exchange Ushers in a New Era of Sustainable Trading with Shariah Compliance

    Kuala Lumpur, 26 September 2023 − Bursa Malaysia Berhad (“Bursa Malaysia”) proudly declared that its subsidiary, Bursa Carbon Exchange (“BCX”), successfully initiated trading and facilitated off-market transactions for carbon credits. On the second day of trading, a total of 16,500 Verra-registered carbon credits were transacted by ten companies across different industries. This signifies a promising outset for Malaysia’s voluntary carbon market (“VCM”).

    “We are pleased with the successful go-live of the BCX trading platform. Bursa Malaysia’s efforts and agility underscores our speed-to-market in fulfilling a national mandate to facilitate the country’s shift towards a lower carbon economy,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.

    For the commencement of trading, two standardised contracts were offered – the Global Technology-Based Carbon Contract (“GTC”), focusing on global technology-based greenhouse gas (“GHG”) reduction projects, and the Global Nature-Based Plus Carbon Contract (“GNC+”), which features global nature-based GHG reduction projects with co-benefits in the Agriculture, Forestry and Other Land Use (“AFOLU”) sector.

    Companies who took part in the go-live trading on BCX (beginning with the highest volume traded) were:

    • Vitol Asia Pte Ltd
    • Petro Ocean Sdn Bhd
    • Global Tunikara Sdn Bhd
    • Sumisaujana TCM Chemical Sdn Bhd
    • Green Innotech Sdn Bhd
    • Graphene Synergy R&D Sdn Bhd
    • Yinson Holdings Bhd
    • ICT Zone Asia Bhd
    • CIMB Bank Berhad
    • Sisma Water Technology Sdn Bhd

    “Interestingly, we observed a notable surge in participation by smaller companies, demonstrating the growing awareness of environmental responsibility among not just public listed companies, but also among small and medium-sized enterprises. While the participation of large corporations remains vital, this shift indicates that there is wider embrace of sustainability practices, which suggests future broader demand for decarbonisation projects,” added Datuk Umar.

    “Our aspiration is to offer a variety of environmental solutions based on market needs. We have received increasing requests from corporates seeking an independent and cost-effective platform for renewable energy certificates (RECs) transactions. Thus, we are pleased to announce our intent to offer RECs on BCX by the third quarter of next year. As a trusted and experienced exchange operator, Bursa Malaysia has a key role in the national energy transition, which is to facilitate financing in low carbon technologies, and accelerating availability of RECs,” Datuk Umar elaborated.

    The BCX is one of the many initiatives by the Exchange to complement proactive efforts by Malaysian companies to reduce their impact to the environment. “BCX will take time to build liquidity as it is in its infancy stage. In time, we are confident that our various ecosystem building efforts and offering of high quality environmental solutions will surely gain traction. We urge leading companies to step up and be early active participants of the BCX, either as a supplier or a buyer,” stated Datuk Umar.

    BCX is currently waiving its onboarding fee and offering a discount on its trading fee until the end of 2023. Companies who have yet to onboard or trade are encouraged to take advantage of the offer before the year ends. The BCX trading platform was co-designed and developed with Deon Digital AG, which is headquartered in Switzerland.

  • Bursa Malaysia Takes a Significant Step Towards Sustainability with VCM Handbook Release

    The inaugural Bursa Malaysia Carbon Market Forum 2023, aligned with IGEM 2023, featured key insights and discussions on Malaysia’s efforts in establishing and promoting the Voluntary Carbon Market (VCM). YB Nik Nazmi Nik Ahmad, Minister of Natural Resources, Environment and Climate Change (NRECC), was present to engage in this significant event.

    The VCM Handbook is a collaborative effort between Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and the Malaysian Green Technology and Climate Change Corporation (“MGTC”), which was initiated through a memorandum of collaboration (“MOC”) signed on 20 February 2023. The VCM Handbook was developed in consultation with NRECC and various ecosystem participants.

    As Malaysia shifts towards becoming a lower carbon economy, the VCM Handbook is a relevant guide designed to assist entities keen on participating in carbon market project development and Malaysia’s voluntary carbon market. The handbook defines the roles and functions of key entities in Malaysia’s carbon market operations, serving as a reference point for market players.

    “We are delighted to complete the VCM Handbook within just six months of the MOC signing, and this demonstrates effective collaboration in fulfilling a need to nurture the development of carbon projects in Malaysia,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.

    “With the increasing prominence on carbon offsets and carbon markets globally, it is imperative that Malaysia acts on the nation’s untapped potential, by developing its VCM ecosystem and implementing high-quality carbon projects. This VCM Handbook is a critical step in ensuring Malaysia’s VCM can truly support the country’s net zero journey,” added Datuk Umar.

    “The VCM Handbook will be a valuable resource to facilitate carbon offset project implementation in Malaysia, where the carbon credit generated will be used by other corporations to meet their net zero targets. The VCM Handbook provides essential information on how it works, key concepts, standard methodologies, and case studies,” shared Ts. Shamsul Bahar Mohd Nor, Group Chief Executive Officer of MGTC.

    He added, “MGTC is honoured to collaborate with bursa Malaysia in developing it. We thank the numerous stakeholders, including federal ministries, state governments, relevant government agencies, carbon consultants, project developers, as well as validation and verification bodies, for their invaluable contributions. In addition to the VCM Handbook, we are pleased to announce the launch of a VCM Directory, another necessary tool to scale up the emerging Malaysia’s carbon credit supply.”

    Datuk Umar also shared plans to promote both the VCM Handbook and VCM Directory at the Malaysia Pavilion during the 2023 UN Climate Change Conference (UNFCCC COP 28) in Dubai later this year. “Our goal is to attract international project developers and investors to participate in the development of high-quality carbon projects in Malaysia, and facilitate the transfer of knowledge, skills and capital needed to rapidly scale up carbon initiatives in the country. This effort is pivotal in supporting domestic corporates in their net zero and carbon neutrality goals, and for fulfilment of the role of the Bursa Carbon Exchange,” he explained.

    The inaugural Malaysia Carbon Market Forum is a half-day event organised by the Bursa Carbon Exchange. With knowledge sharing as the central focus, the forum offered participants the opportunity to learn from both local and leading global experts on global VCM trends and how to leverage and navigate carbon markets and carbon project development. Speakers at the forum included representatives from International Emissions Trading Association (IETA), Verra, Indonesia Carbon Trade Association (IDCTA), Vitol, Sylvera, Permian Global, Shell’s Nature Based Solutions business, EKI Energy Services Ltd., Viridios Capital Pty Ltd and BloombergNEF.

    A copy of the VCM Handbook can now be downloaded from https://bcx.bursamalaysia.com/index.php?rp=vcm_handbook. Companies operating in the carbon market industry can now register their services in the newly established VCM Directory, accessible via https://www.mgtc.gov.my/vcm/.