Malaysian Carbon Exchange Inks MoU With Gold Standard at COP28

Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Berhad (Bursa Malaysia) and Gold Standard, a leading impact standards body, signed a Memorandum of Understanding (MoU) during the 28th United Nations Climate Change Conference of Parties (COP28) in Dubai, to further develop and grow the voluntary carbon market landscape in Malaysia.

The memorandum will enable BCX, the world’s first Shariah-compliant carbon exchange, to enhance the offerings on the carbon exchange and increase the knowledge of its ecosystem players in areas such as the process of registering a carbon project, to the operationalization of methodologies and standard-setting initiatives by Gold Standard.

This will support BCX as it expands the offering of carbon credits from both local and international carbon projects.

Gold Standard is an established and internationally recognised standard setter, certifier, and issuer of carbon credits, which are recorded and tracked on the Gold Standard Impact Registry.

As part of the MoU, Gold Standard will, among other activities, support capacity building for local project developers and encourage the development of validation and verification bodies, for the operationalisation of carbon projects in the Malaysian market.

Margaret Kim, CEO of Gold Standard said: “By collaborating with exchanges such as Bursa Malaysia, we hope to encourage the adoption of carbon credits as part of credible corporate climate plans, and promote the growth of the voluntary carbon market with integrity.”

“Not every carbon credit is created equal, and it is vital that investors can see and value the different levels of quality. Gold Standard will always advocate for the highest integrity that carbon credits can deliver, in terms of both environmental and sustainable development impact.”

According to Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, the broadening of offerings on BCX will support the country’s transition to a lower carbon economy.

“This MOU signing is timely as we aim to expand BCX’s trading platform to include Gold Standard-certified carbon credits from next year onwards. With the adoption of both leading international carbon credit standards – Verra and Gold Standard – on BCX, we will open our marketplace to more carbon project developers and methodologies, which aligns with our role of facilitating access to a wider range of high-quality carbon credits.”