Malaysian stock exchange Bursa Malaysia’s subsidiary, Bursa Carbon Exchange (BCX), has carried out its first Malaysian Carbon Credit auction with carbon credits from the Kuamut Rainforest Conservation Project in Sabah (Kuamut Project).

The move represents a crucial step for the nascent exchange in showcasing Malaysia’s capacity to develop its own carbon projects that comply with international standards. With this auction, it also establishes a benchmark price for voluntary carbon credits for Malaysian nature-based carbon projects.

The auction attracted participation from institutions and organizations committed to reduce their environmental impact through credible pathways, one of them by offsetting hard-to-abate greenhouse gas (GHG) emissions through carbon credits.

The auction of the domestic forest protection and regeneration project was successfully cleared at 50 ringgit (US$10.72) per contract.

“It has been a long wait for Malaysia to finally witness the auction of the country’s first domestically produced quality carbon credits,” says Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift.

The successful bidders in this auction were mostly larger corporates, including Malayan Banking, CIMB Bank, BBB Asia Capital, Eco Green Carbon Ventures, Gas Malaysia, Petronas TROX Malaysia, and Yinson Holdings.

The Kuamut Project has earned international recognition and is rated “best in class”, as one of the highest-rated improved forest management (IFM) projects in the world by the carbon rating agency BeZero Carbon.

A key significance of the project is that it delivers tangible climate, community and biodiversity co-benefits, earning itself a Gold Level for Climate status under the Climate, Community and Biodiversity (CCB) Standards. The project also contributes to several United Nations Sustainable Development Goals.

As a lighthouse project for local forestry-based carbon credits, it paves the way for other states to look into preserving their forests and natural resources, while contributing to the nation’s commitment to maintain at least 50% of the country’s land under forest and tree cover.