KOTA KINABALU: Malaysia took a significant step towards sustainability with the successful inaugural carbon credit auction on Bursa Malaysia.
The auction, held on Thursday, will provide crucial financial support for important conservation projects in Sabah.
The Kuamut Rainforest Conservation Project, recognised internationally as one of the improved forest management projects, has been awarded a top rating by carbon rating agency BeZero Carbon.
However, Sabah Forestry Department chief conservator of forests, Datuk Frederick Kugan, said the exact auction proceeds remain undisclosed as there are ongoing investments in the area’s conservation.
“I don’t think we can share how much (proceeds) is at the moment. It is something that will be revealed at a later stage. Of course, whatever proceeds will be shared accordingly based on the agreement,” he said.
Speaking to reporters after the launch of the Sabah Biodiversity Integrated Information System (SaBIIS) and its mobile application with citizen science concept called iSaBIIS here yesterday, Kugan said since the forest is a state matter, the Sabah government will also be getting its share.
On the Kuamut project, Kugan said its inception dates back to 2013, with substantial research and groundwork laid over several years.
“The project received approval from the previous state government in 2017, with the formal agreement signed in 2021. This timeline underscores the extensive planning and collaboration required to bring such a project to fruition,” he said.
Bursa Malaysia Bhd’s subsidiary, Bursa Carbon Exchange (BCX), said in a statement that its first auction attracted participation from businesses and organisations committed to reducing their environmental impact through several credible pathways, including offsetting hard-to-abate GHG emissions through carbon credits.
The auction of the domestic forest protection and regeneration project was cleared at RM50 per contract.
