The govt is developing a single domestic carbon trading platform through cooperation between KASA, MoF and Bursa, says minister

pic by HUSSEIN SHAHARUDDIN

DOMESTIC carbon trading will be implemented in three phases by the end of 2022.

Environment and Water (KASA) Minister Datuk Seri Tuan Ibrahim Tuan Man (picture) said the development of domestic carbon trading is in the middle of securing buy-ins from state governments.

“Currently, the Finance Ministry (MoF), KASA and Bursa Malaysia are seeking to obtain buy-ins from state governments while attracting investments from potential carbon credit buyers,” Tuan Ibrahim said in his reply to a question from Subang MP Tuan Wong Chen at Dewan Rakyat yesterday.

He said the federal government is also looking into market design frameworks, registration and cooperation with developing international standards.

Meanwhile, he stated that the government has no plans to privatise carbon trading management and operation.

“Instead, the government is developing a single domestic carbon trading platform through cooperation between KASA, MoF and Bursa Malaysia,” he noted.

He also shared that the process to develop the platform needs to be divided into several phases.

“The first phase involves a voluntary carbon market (VCM) before transitioning to the domestic emissions trading scheme (DETS),” he added.

According to Tuan Ibrahim, Bursa was chosen to develop domestic VCM and DETS because of its experience in implementing capital market operations such as equities and bonds.

“Bursa also has the technical and legal capabilities to become the implementing entity for DETS,” he stressed.

He noted that the implementation of the DETS is based on the principles of open market, as well as market supply and demand.

“This will facilitate access to the domestic carbon market by potential entities such as private companies and the state government,” he further said.