Malaysia’s stock exchange Bursa Malaysia and the Malaysian Green Technology and Climate Change Corporation (MGTC), an agency of the country’s ministry of environment and water, signed a memorandum of collaboration (MoC) to build and promote the voluntary carbon market (VCM) ecosystem in Malaysia.

The collaboration, which follows the launch of the Bursa Carbon Exchange (BCX) in December 2022, focuses primarily on three areas in which the companies say they aim to “identify, to guide, connect and nurture key players integral to building a robust VCM ecosystem”.

The first focus will be on developing a national VCM handbook that will serve as a resource for professionals and stakeholders in the industry by supporting and guiding them with relevant information to generate carbon credits using international standards acceptable to the BCX.

The MoC’s second focus targets the creation of a directory of carbon industry service providers and, thirdly, it aims to enhance technical expertise and knowledge sharing among ecosystem players.

Bursa Malaysia is also organizing the Malaysia Carbon Market Forum, in conjunction with the International Greentech & Eco Products Exhibition & Conference, to be held later this year.

The exchange hopes the event will be a platform for industry leaders and experts to share insights and experiences on key topics in the VCM space.

“Developing a new market is challenging,” says Muhamad Umar Swift, the exchange’s CEO. “These joint initiatives with MGTC will help drive awareness, build know-how, connect participants and catalyze trading interest, which are important in building a successful carbon exchange that will elevate Malaysia’s position as a leader in environmental, social and governance (ESG)-related offerings”.