Bursa Malaysia (Bursa) today announced its membership in the International Emissions Trading Association (IETA), a thought leader in carbon market mechanisms.
This move is in line with Bursa’’s commitment to develop Malaysia’s carbon market through its voluntary carbon market, the Bursa Carbon Exchange and to strengthen institutional capacity in developing a vibrant voluntary carbon market ecosystem.
Established in 1999, IETA is a non-profit organisation that is a key global advocate for emissions trading as an effective policy instrument for managing, mitigating and reducing greenhouse gas emissions to promote market-based solutions for climate change.
IETA currently has nearly 300 member companies that include organisations in the financial, energy, industrial and materials, technology and legal sectors. IETA members also include standards, registries and foundations, as well as carbon-related service providers.
As a member of IETA, Bursa Malaysia will have access to the latest developments in climate policy and market design, direct contact with a global network of industry experts and stakeholders from various sectors who are actively engaged in the development of carbon markets and emissions trading systems, including key decision makers in the international carbon market.
The network is crucial as Bursa Malaysia grows the Malaysian voluntary carbon market and expands its offerings on Bursa Carbon Exchange, the world’s first Shariah compliant carbon exchange.
Bursa Malaysia Chief Executive Officer Datuk Muhamad Umar Swift said, “Joining IETA is an important milestone for Bursa Malaysia. The association provides us with a platform and representation as we continue to gain insights on Article 6 of the Paris Agreement and various carbon compliance markets in preparation for a future where carbon markets will gain significance in driving countries’ Net Zero aspirations”. He added, “The recognition is important as we continue to drive the sustainability agenda among corporates in Malaysia.”
Launched on 9 December 2022, Bursa Carbon Exchange offers a platform for corporates to trade carbon credits, enabling them to offset their carbon footprint through the purchase of carbon credits or sale of carbon credits generated from their decarbonising projects. In return, this will help to finance and drive the development of domestic green house gas emissions reduction and removal solutions and projects.
