Carbon credits can now be traded in line with Islamic principles – Free Malaysia Today

PETALING JAYA: Businesses will now be able to reduce their carbon footprint and achieve climate goals the shariah-compliant way.
Under the Bursa Carbon Exchange (BCX), which was launched by Bursa Malaysia today, companies will get to trade carbon credits in line with Islamic or shariah principles.
The BCX is yet another step in Malaysia’s journey towards achieving net-zero carbon emission by 2050, simultaneously pivoting corporate Malaysia towards a green economy, Bursa chairman Abdul Wahid Omar said at the launch.
“Leveraging on Malaysia’s position as a global Islamic finance marketplace and the world’s leading exchange for Islamic fundraising and investment, Bursa Malaysia has become the world’s first exchange to receive shariah approval for its carbon exchange and standardised carbon products,” he added.
The rules, auction terms and conditions as well as operational processes have been finalised and solutions that support the reduction, avoidance or removal of emissions from the atmosphere can now be traded.
Bursa CEO Umar Swift said buyers and sellers will now be able to transact high-quality carbon credits and corporate buyers will be able to use them to offset their impact on the climate alongside their other internal carbon reduction initiatives.
“I strongly urge all market participants to join us in this journey. As we get closer to auction day, we encourage all corporates to also be a part of this new carbon marketplace,” Umar added.
Natural resources, environment and climate change minister Nik Nazmi Nik Ahmad said that under the carbon trading policy, there will be no restrictions on the sale of carbon credits generated by projects located in Malaysia to buyers outside the country.
He said these efforts will help to reduce average temperatures by 2.2 to 3.4 degrees Celsius by 2100.
Nik Nazmi said the new government is highly committed in implementing climate actions despite the fact that Malaysia’s share of greenhouse gas emissions is only 0.69%.
“The carbon market is evolving fast, and we want our corporate entities to become sophisticated carbon market players as well,” he added.
Trading activities, which are expected to begin in March 2023, will be conducted through an auction to enable price discovery for new standardised carbon credit products listed on BCX.
Project developers and proponents who are interested in supplying carbon credits for the auction as well as corporates that want to buy those credits may register on https://bcx.bursamalaysia.com or email [email protected].
How does your work-life balance compare to other working parents?
Sacrificing the conveniences of urban centres for sustainable, green, communal living is now a thing of the past.
Panasonic’s Cordless Stick Vacuum Cleaner is compact, lightweight and efficient.
This ranking endorses Monash University’s reputation as a world-leading research and educational institution.
A powerful and convenient machine designed with thorough house cleaning in mind.

source