Time To Introduce The Malaysia Carbon Market Policy

Abstract

Carbon credits are one type of compensatory mechanism for offsetting the emissions of carbon dioxide or other greenhouse gases. When a company buys a carbon credit, usually from the government, it gains permission to generate one ton of CO2 emissions. The first auction for Malaysian Carbon Credit was held by Bursa Carbon Exchange (BCX) recently. This is a monumental step toward admitting the first Malaysian nature-based carbon project onto the BCX. This is a testament to Malaysia’s ability to develop its own carbon projects that meet international standards. Another feather in the cap, BCX is the world’s first Shariah-compliant multi-environmental product exchange that facilitates the trading of carbon credits via standardised contracts