Malaysia’s Bursa Carbon Exchange (BCX) is conducting the auction for its first domestic nature-based offering with 83.38 hectares of the Kuamut Rainforest Conservation Project in central Sabah on Borneo Island.
The auction on the 25th July 2024 is for the estimated annual emission reductions of 800,000 tons of carbon dioxide equivalent (tCO2e). This Verra Project ID 2609 has been categorized as ‘Best in Class’ for improved forest management by voluntary carbon market rating agency BeZero.
This is a public–private partnership project involving the Sabah Forestry Department, Yayasan Sabah and Rakyat Berjaya, together with tropical forest project developer Permian Global. It aims to protect and restore the carbon-rich forest, while preventing emissions from planned deforestation and forest degradation of the area.
In so doing, the project is expected to improve living standards, health services, education, sustainable job creation plus entrepreneurship opportunities for the local community.
The BCX is the world’s first Shariah compliant multi environmental product exchange that facilitates the trading of carbon credits and renewable energy certificates via standardized contracts.
With onboarding and carbon withdrawal fees waived until the 31st December 2024 to attract participants, the auction will be conducted over two half-day sessions. The minimum 1,000 tCO2e bid has an indicative RM50 (US$10.66) floor pricing for each tCO2e (v2017–2021). Once both auctions close, the clearing price will be set based on the highest cumulative volume of bids that would match or exceed the offered tCO2e quantity. Once allocation is done, all participants will pay the same clearing price.
