Unlocking sustainable solutions: A glimpse into the Bursa Carbon Exchange

25 June 2024

The global effort to combat climate change has led to the emergence of innovative solutions, one of which is the voluntary carbon market. Voluntary carbon markets enable entities to trade carbon credits generated from projects that remove or reduce greenhouse gases from the atmosphere to offset their carbon footprint. The establishment of Malaysia’s voluntary carbon market exchange, Bursa Carbon Exchange (“BCX”), a subsidiary of the stock exchange Bursa Malaysia Bhd, represents a significant stride by Malaysia in promoting sustainability and addressing climate change.

BCX, as the world’s first Shariah-compliant carbon exchange, has played a pivotal role since its inception in facilitating carbon credit trading for corporations to offset their carbon footprints. Looking to the future, BCX’s commitment to sustainability remains evident with its plans to introduce renewable energy certificates, marking a significant stride towards a greener and more environmentally responsible future.

This article by our associate firm in Malaysia, Rahmat Lim & Partners, provides an overview of the BCX and its features. To read the full article on the Rahmat Lim & Partners, please click here.