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PUTRAJAYA, The upcoming maiden offering of Malaysian Renewable Energy Certificates (RECs) and carbon credits for auction through the Bursa Carbon Exchange (BCX) will provide opportunities for corporates to demonstrate their climate actions by efficiently allocating capital to support forest conservation and restoration efforts and low carbon technologies. Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said carbon credits and RECs can potentially catalyse the development of low carbon projects to support Malaysia's ambition to achieve a 45 per cent reduction in emissions intensity based on gross domestic product by 2030 compared to 2005 levels, as outlined in Malaysia's nationally determined contributions. 'Thus it is commendable to see the involvement of Bursa Malaysia in encouraging local carbon projects to transact through BCX,' he said in a statement today. Nik Nazmi said the Natural Resources and Environmental Sustainability Ministry (NRES) is also encouraged by Sarawa k and Sabah's exemplary participation in leading the development of carbon projects in their respective regions to generate carbon credits and RECs. 'NRES also encourages other states in Malaysia to take part to help spur the development of Malaysia's carbon market industry,' he added. It was reported that BCX, a wholly owned subsidiary of Bursa Malaysia Bhd, will host the auction of its first Malaysian carbon credits on July 25, 2024. BCX said the auction for the carbon credits from the Kuamut Rainforest Conservation Project in Sabahmarks a significant milestone for BCX on several front -- the offering of its first Malaysia Nature-based Carbon Credits Plus (MNC+) generated via a domestic forestry project, and the expansion of BCX's product offering to include local carbon credits in addition to global carbon credits. Nik Nazmi said NRES hopes that interest among domestic and international business communities to invest in more carbon projects in Malaysia will increase through this auction process. 'In t his regard, NRES welcomes the development of carbon projects that meet the relevant criteria and align with the nation's sustainable objectives. NRES also welcomes interested nations and entities to forge ties with the Malaysian government to invest in carbon projects in Malaysia,' he said. He also noted that NRES is in the process of formulating the National Carbon Market Policy, which will provide strategic guidance on carbon market initiatives, aligning its implementation with international conventions like the United Nations Framework Convention on Climate Change (UNFCCC) and International Civil Aviation Organisation (ICAO), as well as voluntary carbon markets. Source: BERNAMA News Agency