KUALA LUMPUR, August 10, 2024 – A well-designed carbon market can provide a scalable and impactful solution to address climate change, according to Bursa Malaysia Bhd Chairman, Tan Sri Abdul Wahid Omar. Speaking at the second Malaysia Carbon Market Forum (MCMF) earlier this week, Abdul Wahid emphasized the importance of carbon markets in catalyzing immediate and effective decarbonization efforts.
Abdul Wahid highlighted the Malaysian government’s Voluntary Carbon Market (VCM) initiative, introduced during Budget 2022, which led to the launch of the Bursa Carbon Exchange in late 2022. The VCM serves as Malaysia’s first carbon pricing instrument, aimed at encouraging businesses to reduce greenhouse gas (GHG) emissions. He also advocated for the future introduction of a compliance carbon mechanism in Malaysia.
“Carbon markets are not just about reducing GHG emissions,” Abdul Wahid stated. “A well-structured scheme should also prioritize co-benefits that positively impact the environment and local communities.”
However, Abdul Wahid acknowledged the challenges facing carbon markets, including the issue of “greenhushing,” where companies avoid publicizing their environmental efforts to mitigate the risks of being accused of “greenwashing.” He noted that the global voluntary carbon market is still evolving and encouraged feedback to enhance the integrity of Malaysia’s carbon market.
Despite the criticism, Abdul Wahid stressed that carbon credits representing real emission reductions should be used alongside direct mitigation efforts. He cited a June 2023 report by Trove Research, which found that companies actively using carbon credits decarbonize at twice the rate of those that do not.
The second MCMF, themed “Empowering Climate Actions through Carbon Market,” was co-organized by Bursa Carbon Exchange and the International Emissions Trading Association. The event focused on advancing Malaysia’s carbon market ecosystem to support the national climate agenda.