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By Ling Hui
KUCHING, Sep 4: Carbon trading is not a money-making mechanism, says Malaysia’s leading carbon consultant, Eco Ideal Consulting Sdn Bhd co-founder and chief executive officer (CEO) Soon Hun Yang.
“The whole idea of carbon trading was created to finance low-carbon investment on projects that contribute to reducing certain emissions.
“It’s not for you to make a lot of money. You won’t make a lot of money, I can assure you that,” he said, dispelling the misconception that selling carbon credits could generate substantial wealth for businesses.
To realise revenues from projects through carbon credits, Soon explained that it is a lengthy process from validation to registration, which requires at least a year.
Following successful registration, he said, there are more steps to undertake, such as monitoring and verification before the issuance of carbon credits.
“It’s a long list of things we have to do. If you’re talking about getting your first harvest from your carbon credits (it’ll happen only), maybe in the third year and onwards.
“So, it’s all about testing your patience,” he said in a sharing session at Bursa Malaysia’s East Malaysia Palm & Lauric Oils Price Outlook Conference & Exhibition 2023 (emPOC2023) held at a local hotel here today.
Talking about opportunities for carbon projects in the palm oil sector, Soon noted a huge potential in Sarawak, especially through reducing fertiliser usage and reforestation.
Other potential areas for carbon credit claims that he mentioned included agroforestry, land use from biochar, biogas, solid fuel, and renewable energy.
However, Soon quickly noted some challenges ahead, such as the volatile carbon prices today and the legacy ‘discrimination’ against palm oil-related credits, which affects the demand.
“There are a lot of negative publications about carbon credits, so the market is very weak at the moment. I think, towards the end of the year, it will go back up.
“Because the demand will come in when people do last-minute shopping to cover their offsets. The price also highly depends on the type of project and the narratives.
“Whether you have a good story to tell, whether your project helps the local people or conserves biodiversity. These will add up to the price,” he added.
In terms of standards to follow, Soon pointed out that the Verified Carbon Standard (VCS) by Verra is accepted globally and recommended by Bursa Carbon Exchange (BCS) in Malaysia.
Soon has 20 years of experience in carbon credit and has assisted in realising various biogas projects in Malaysia, Indonesia and China.
He has issued up to 3.5 million credits to date and helped his clients make more than RM200 million in return from renewable energy and carbon credits. — DayakDaily
