The first Malaysian tech-based biomass carbon credit project will be auctioned on Bursa Carbon Exchange (BCX) on Sep 29.
Dubbed the Malaysia Grouped Biomass Waste Recovery and Utilisation Project, the Verra-registered project in Penang recovers and converts high moisture biomass residues such as empty fruit bunch (EFB) from palm mills and wood chips into renewable biomass energy to replace fossil fuel-based boilers and turbines.
“For the first tranche of issuance, credits from two vintages 2023 and 2024 will be included. In total, about 215,000 tonnes of carbon credits are available, but we haven’t set how much will be auctioned in September,” said Bursa Carbon Exchange (BCX) business development and sales vice president Muhammad Rizal Azmi.
Muhammad Rizal was speaking at a session on “Carbon Markets Explained: Latest Developments and Strategies for Credible Offsetting” at the Asia ESG Summit last month.
Elaborating on the use of carbon credits, he said companies buy these credits to offset their emissions or that of their subsidiaries or suppliers, or to create carbon-neutral products.
“They can also make a contribution claim. What this means is that they do not offset their emissions, but they are supporting these projects by purchasing the carbon credits.”
BCX was launched by Bursa Malaysia in December 2022. Its inaugural auction was conducted in March 2023, followed by the launch of its trading platform in September of the same year.
Auction and trading of renewable energy certificates (RECs) were subsequently introduced in 2024.
Five projects – three for carbon credits and two for RECs – have been auctioned on BCX so far.
Muhammad Rizal noted that liquidity in the voluntary carbon market is very low because there is not enough demand currently.
The Kuamut Rainforest Conservation Project in Sabah, which protects and restores 83,000ha of tropical forest in Sabah, marked the auction of the first Malaysian carbon credits on BCX in 2024.
“There is a good reception for this type of project, but unfortunately, most of the buyers are not Malaysians. About 98% were brought by foreign buyers,” Muhammad Rizal shared.
For the upcoming auction of the biomass carbon credit project by Climate Quest Sdn Bhd, he said the indicative reserve price range is between RM20 and RM25 per tonne of carbon dioxide equivalent.
The Asia ESG Summit 2026, themed “Driving Action to Measurable Impact”, was organised by Star Media Group Bhd, with Sime Darby Property Bhd as the main sponsor and Permodalan Nasional Bhd as the supporting partner.
It was held on July 21 and 22 at Sunway Resort Hotel in Bandar Sunway, Selangor.
