BURSA Malaysia Bhd has today launched Malaysia’s pioneer voluntary carbon market (VCM) with the introduction of the Bursa Carbon Exchange (BCX).

Chairman Tan Sri Abdul Wahid Omar said BCX is operated by Bursa Malaysia and is the first Shariah-compliant carbon exchange in the world, diversifying the product universe for the environmental, social and governance (ESG) and Shariah-compliant products.

“The VCM is critical to assist the world in meeting the 1.5°C pathway and accelerating the transition to a lower-carbon future.

“The launch of BCX is momentous as it will play a significant role in supporting the nation and the world’s VCM ecosystem,” he said at the launch of BCX, which was officiated by Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad (picture).

The objective of the BCX is to enable companies to trade voluntary carbon credits from climate-friendly projects and solutions, with the aim to offset their emission footprint and meet climate goals.

The BCX will also support Malaysia’s ambition to achieve its target of net-zero greenhouse gas (GHG) emissions by 2050, while accelerating corporate Malaysia’s pivot towards a green economy and meeting global demands for a sustainable supply chain.

Meanwhile, Bursa Malaysia CEO Datuk Muhamad Umar Swift said the BCX will make carbon trading a more inclusive ecosystem, allowing more market participants to engage with clients looking for ESG as well as Shariah-compliant related solutions. — TMR