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Malaysia to launch Voluntary Carbon Market Exchange this week

Malaysia will be launching the long-awaited Voluntary Carbon Market (VCM) Exchange on Dec 9 to drive the nation's environmental change and sustainable goals.


The VCM is an initiative under the purview of the Malaysian Ministry of Finance (MOF) and the Ministry of Environment and Water, while Bursa Malaysia Bhd was given the mandate to implement the VCM Exchange.


“The VCM will act as a catalyst, encouraging investments in high-quality offsetting projects that can generate positive environmental and societal benefits,” according to Datuk Muhamad Umar Swift, Bursa Malaysia’s CEO. The MOF deputy secretary general Datuk Johan Mahmood Merican, on his had, added that "We mustn't forget the role of the people at large ... encourage the general public to also play their part in terms of behavioural changes and to promote green consumption"


The slides used to introduce the Malaysian VCM to interested parties is divided into 4 main topics:


1. Climate Crisis & our Nation’s Call to Action, where the three main mechanisms for “pricing” carbon are presented: VCM, Emissions Trading System (ETS) and Carbon Tax


2. VCM and its 4 steps: Emission mitigation project, Project verified by standards and credit issuance, Trading and carbon markets, Credits retired. And also the several options for carbon crediting projects, divided into two categories:

  • Technology-based: Renewable energy, Energy Efficiency, Waste Disposal, Industrial Gases, Household Devices, Transport, Tech-based Removals

  • Nature-based: Agriculture/Soil Carbon, Forestry, Other Land Use, Blue Carbon


3. Bursa Malaysia VCM Exchange Design: carbon exchange via standardized contracts, matching carbon credit sellers and buyers, with or without intermediaries


4. Call-To-Action: after workshops, corporates were invited to purchase carbon credits via an auction now at year end 2022. With a kind of optional "test drive": to purchase small volumes of Verra- certified carbon credits to kick- start their offsetting journey.


Click on the image below (one of the slides of the above mentioned presentation), including a QR-Code to the actual auction form, the "Interest Registration Form for Buyers" (or link here). Interesting to see the 4 ranges for bid price per tCO2e indicated: Less than USD5, USD5 to USD10, USD10 to USD20 and Above USD20.


Last but not least, an article by The Edge Markets also covering the launch of the Malaysian VCM Exchange.




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“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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