Bangchak Corp Partners with Bursa Malaysia to Propel ASEAN Carbon Credit Market Development

BANGKOK, August 19, 2024 – An ambitious initiative to establish a regional carbon credit market in ASEAN is gaining momentum as Bangchak Corporation, a major energy conglomerate, has joined forces with Bursa Malaysia, the Malaysian stock exchange, to advance the project.

Bangchak Corporation, which has been at the forefront of carbon credit trading in Thailand, is keen to extend its expertise across the region, says a report in the Bangkok Post. The company, which founded the Carbon Markets Club in 2021, now boasts around 1,000 members, including individuals and companies focused on promoting carbon credit trade within Thailand. The next phase of its vision is to create a standardized carbon credit trading system across ASEAN.

According to Gloyta Nathalang, Senior Executive Vice-President for Sustainability Management and Corporate Communications at Bangchak, Thailand and Malaysia have committed to engaging with other ASEAN countries to develop the ASEAN Common Carbon Framework (ACCF). This framework aims to harmonize carbon credit trading across the region, providing a unified standard that could serve as a regional alternative to the European Gold Standard, which is known for its high trading costs.

Gloyta shared insights from her role as Chairwoman of Thailand’s Carbon Markets Club during the 2024 Malaysia Carbon Market Forum. The forum, hosted by the Bursa Carbon Exchange in Kuala Lumpur from August 7-8, centered on the theme “Empowering Climate Actions through Carbon Market.” During a session titled “Creating a High Integrity ASEAN Carbon Market,” Gloyta emphasized the critical importance of developing a robust carbon credit market within ASEAN, highlighting the potential of the ACCF to drive the region’s carbon neutrality strategy.

As part of the forum, Gloyta also participated in a closed-door roundtable meeting organized by ASEAN-BAC Malaysia, where she discussed the opportunities and challenges in establishing a regional carbon market ecosystem. The discussions underscored the necessity for ASEAN member states to collaborate closely to realize the ACCF’s objectives.

Thailand has set an ambitious target to achieve carbon neutrality by 2050. The carbon credit trade, which offers economic incentives for businesses to reduce their carbon dioxide emissions, is seen as a key tool in this effort. The credits, earned through environmental projects such as clean energy development, can be sold to companies looking to offset their carbon emissions.

The Malaysia Carbon Market Forum also marked the launch of the Malaysia Carbon Market Association (MCMA), a body dedicated to accelerating the development of Malaysia’s carbon market.

The ACCF, once fully operational, is expected to significantly boost carbon credit trading within ASEAN, leading to a regional standard that not only aligns with global best practices but also caters to the unique needs of the ASEAN market.