The first auction on Malaysia’s new voluntary carbon market, the Bursa Carbon Exchange (BCX), took place on 16 March, with around RM7.7 million in carbon credits sold.
The market must work in sync with a range of policy instruments. Stable institutional and regulatory structures must balance competing interests and trade-offs to ensure optimum coverage, caps, pricing and reporting.
Southeast Asian countries should carefully weigh the economic and environmental impacts of unilateral climate policies like the European Union’s Carbon Border Adjustment Mechanism (CBAM).
The full potential of the private sector needs to be unleashed to raise the capital needed to fight climate change. This can only be done if carbon is priced high enough to establish the business case for decarbonisation, writes Georg Kell.