Malaysian Green Technology and Climate Change Corporation (MGTC) and CGS International Securities Malaysia Sdn Bhd (CGS MY) have signed a memorandum of understanding (MoU) to explore collaboration in carbon-market development, strengthening Malaysia’s efforts to achieve net-zero greenhouse gas emissions by 2050.
The partnership will focus on developing carbon crediting methodologies, standards and approaches in Malaysia and China, alongside knowledge-sharing initiatives and potential applications of regional expertise.
Both parties will also explore carbon-inclusive mechanisms, frameworks and platforms to support the growth of Malaysia’s domestic carbon market.
MGTC Group Chief Executive Officer Saiful Adib Abdul Munaff said Malaysia’s transition towards net zero requires credible standards, technical capabilities and market infrastructure capable of translating climate commitments into measurable outcomes.
He said the collaboration would strengthen local expertise while leveraging regional experience to support the development of Malaysia’s carbon market.
Meanwhile, CGS MY Chief Executive Officer Khairi Shahrin Arief Baki said CGS MY would draw on the expertise of its Hong Kong-based sister company, CGS International Holdings Ltd, particularly in carbon crediting methodologies and standards.
He added that Malaysia could leverage its established position in Islamic finance and capital markets to develop an internationally credible carbon market, helping businesses finance their transition towards a lower-carbon economy.
The collaboration comes as Malaysia advances its climate commitments under its third Nationally Determined Contribution, which projects national emissions peaking between 2029 and 2034, with an ambition to reach the peak by 2030, subject to enabling conditions.
Malaysia aims to reduce economy-wide emissions by 15 million to 30 million tonnes of carbon dioxide equivalent by 2035 from peak levels.
The initiative also complements the National Carbon Market Policy, National Energy Transition Roadmap and New Industrial Master Plan 2030, while supporting the country’s developing carbon-trading ecosystem, including the Bursa Carbon Exchange.
