KUCHING, Jan 10: The Sarawak government has urged Bursa Malaysia to continue holding discussions and sharing information with the State on Bursa Carbon Exchange (BCX), Malaysia’s pioneer voluntary carbon market (VCM) and the world’s first shariah-compliant carbon exchange platform.
In a media release today, Deputy Minister of Energy and Environmental Sustainability (MEESty) Dr Hazland Abang Hipni said the Sarawak government supports the establishment of BCX.
This was highlighted when receiving a courtesy call from the Bursa Malaysia Berhad delegation led by its director of Group Sustainability, Emilia Tee, and accompanied by Dr Chen Wei-Nee and Hiro Chai at Baitulmakmur Building yesterday (Jan 9).
A joint initiative between the Federal Ministry of Natural Resources, Environment and Climate Change, Bursa Malaysia launched BCX on Dec 9, 2022. The first trade via auction on the carbon exchange platform is expected to commence on March 16, 2023.
The objective of the BCX is to enable companies to trade voluntary carbon credits from climate-friendly projects and solutions to offset their emission footprint and meet climate goals.
During the briefing, Tee explained that the BCX is one of the initiatives in climate change that provides a platform for VCM in Malaysia’s efforts towards achieving net-zero carbon emissions by 2050.
“VCM is a financing mechanism for projects to reduce CO2 (carbon dioxide) emissions through carbon offset activities between suppliers and buyers involved in the carbon trading projects.
“It is the world’s first shariah-compliant carbon exchange platform and provides for high-quality carbon credits,” she said.
Tee added that the BCX is established for three main markets: corporate investors, project developers or owners and brokers.
“The main features of BCX include the trading process, the determination of standard products, and the participation of investors from inside and outside Malaysia,” she said.
Sarawak State legal advisor Dato Sri JC Fong, deputy director (management) Awang Zamharu Awang Mahmood, State Finance Secretary Office director Ahmad Faizal Yaman, MEESty permanent secretary Abg Ahmad Abg Morni, as well as representatives from Natural Resources and Environment Board (NREB) and Petroleum Sarawak Berhad (Petros), were among those present. — DayakDaily