Malaysia takes leading role in carbon markets push

Bursa Malaysia’s voluntary carbon market exchange is evidence of the concrete steps Malaysia is taking towards net zero. – The Star

THE recent creation of a voluntary carbon market (VCM) exchange by Bursa Malaysia, the country’s frontline regulator of capital markets, is a potentially important step forward for Malaysia and the region. All ten Asean countries, including Malaysia, are among the 194 nations that signed the Paris Agreement to reduce emissions and work together to combat climate change. The Bursa Carbon Exchange (BCX) is evidence of the concrete steps Malaysia is taking towards net zero.

Put simply, carbon markets are a venue where carbon credits are issued, bought, and sold – effectively putting a dollar value on carbon (and pollution), which penalises activity that creates carbon emissions. This can be good for both the environment and for business. It could galvanise companies and investors around decarbonisation projects while also driving international investor interest in Malaysia’s capital markets.