Member Article

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) announced on 15 August 2022 that it will be launching the Voluntary Carbon Market (“VCM”) exchange by the end of 2022 to enable companies to purchase voluntary carbon credits from climate friendly projects and solutions, to offset their carbon emission footprint and to meet their voluntary climate goals.

Standardized carbon credit products will be offered for trading at the VCM exchange at transparent prices by way of auction. The auction will enable price discovery for the listed standardized carbon credit products, and the clearing price from the auction will establish a baseline demand for carbon credits thereby providing a reference point for secondary trading for the market participants.

Bursa Malaysia will adopt the widely recognised standard, Verified Carbon Standard or Verra, which accounts for nearly 70% of voluntary carbon credit issuances globally, to ensure the high integrity of carbon credits offered through the VCM exchange. By virtue of the Verra standards, carbon credit projects will be subjected to robust assessment and will be independently verified to prevent greenwashing claims.

To ensure robust participation in the VCM exchange, Bursa Malaysia has been engaging with various stakeholders and invites any project developers, project proponents and corporate buyers who are interested to participate in the supply and purchase of carbon credits to register their interest with Bursa Malaysia.

The full media release made by Bursa Malaysia can be assessed here.