There may be an “pressing want” for BCX, and its consumers, to enhance their environmental certificates eligibility standards, RimbaWatch stated in a press release.
In response, Bursa Malaysia stated it adopts “main and globally recognised” requirements for carbon credit and RECs. The carbon credit on its platform are accredited by Verra, the world’s largest carbon credit certifier, and the RECs traded on its platform are licensed by the I-REC Customary, a worldwide commonplace for renewables certificates, it stated.
“BCX endeavours to advertise environmental property that foster sustainable options to be traded on our buying and selling platform,” the organisation informed Eco-Enterprise in a press release.
‘Finish the REC greenwash’
Bursa Malaysia launched BCX in December 2022 because the world’s first Shariah-compliant carbon credit score change. A gradual begin for the platform in its first yr prompted Malaysian politicians to problem corporates to purchase extra carbon credit traded on BCX to show their dedication to sustainability.
At this time marks the primary public sale for RECs on BCX. An public sale for forest-based credit from the Kuamut Rainforest Conservation Undertaking in Sabah, which market observers have talked up resulting from its further group and biodiversity co-benefits in addition to a excessive exterior ranking, is ready for July.
In its critique, RimbaWatch identified that the Southern Cardamom venture was suspended by Verra after an investigation discovered that Indigenous communities residing inside the venture space in Southern Cambodia had been forcibly evicted.
Because the suspension of the venture in June 2023, there have been no new carbon credit from the Southern Cardamom admitted on BCX, Bursa Malaysia has confirmed. Singapore’s voluntary carbon market, Local weather Influence X, suspended commerce in carbon credit from the venture in December 2023.
The Murum Dam has confronted related issues to the Southern Cardamom venture, with the rights of Indigenous Penan and Kenyah peoples to free, prior and knowledgeable consent (FPIC) violated by beginning building on the dam earlier than communities had been engaged, RimbaWatch identified.
Building of the 944-megawatt dam, which is operated by Sarawak Power, has seen 24,500 hectares kilometres of forest flooded and 1,500 Indigenous individuals displaced. The Murum reservoir can be a big supply of methane, a potent greenhouse gasoline, critics have identified.
In an open letter revealed at the moment, RimbaWatch known as on BCX to finish the commerce in RECs from Murum Dam on its platform. “Finish the REC greenwash. Droop the Murum Dam REC and all different questionable initiatives from the Bursa Carbon Change,” the non-profit stated.
The letter, which known as into query the effectiveness of the dam in lowering emissions, has been signed by 54 organisations, together with non-governmental organisations Save Rivers, Heart for Orang Asli Issues and Greenpeace Malaysia.
Bursa Malaysia: RECS markets facilitate local weather motion
In its response, Bursa Malaysia acknowledged that each carbon and RECs markets “play a vital position in facilitating and accelerating motion in local weather mitigation efforts, by enabling finance stream from the non-public sector”.
“An essential actuality to remember is that whereas the science in environmental property is just not but excellent, given the local weather urgency that the world faces at the moment, Bursa Malaysia is doing our half with key stakeholders to take local weather motion at the moment.”
Petronas stated it helps the event of Malaysia’s voluntary carbon market, which “goals to be a key instrument in funding prime quality and excessive integrity nature-based local weather options initiatives”.
“These initiatives, which have to be verified, validated or licensed by an impartial third-party organisation, can have a big affect within the battle towards local weather change in Malaysia and overseas,” it stated.
The oil big added that it’s “inspired” by the event of stricter integrity requirements by way of the work of business governance physique Integrity Council for the Voluntary Carbon Market (ICVCM), which has been scrutinising the requirements of Verra and different carbon venture certifiers.
BCX’s second public sale kicks off throughout a worldwide droop within the voluntary carbon markets, which have devalued following investigative studies that alleged that carbon credit licensed by Verra overestimated the local weather affect of initiatives.
Malaysia’s surroundings minister warned in October that “unwarranted cynicism” of carbon markets shouldn’t overshadow local weather motion and that there will likely be “numerous trial and error” within the developmental stage of Malaysia’s carbon market.
An earlier model of this story acknowledged that that is second time carbon credit have been auctioned on BCX. At this time’s public sale marks the primary time that renewable power credit have been auctioned on the platform.
