Delegates at the 3^rd Malaysian Carbon Market Forum held in Kuala Lumpur on 15 October 2025 witnessed the announcement of the formalisation of the following agreements: 

1. a Memorandum of Collaboration between Bursa Malaysia Berhad (“BMB”) and the Malaysia Forest Fund (“MFF”) (“BMB-MFF MOC”); and 
2. a Memorandum of Collaboration between Bursa Carbon Exchange¹ (“BCX”) and Sarawak Energy Berhad (“SEB”) (“BCX-SEB MOC”). 

The BMB-MFF MOC

The BMB-MFF MOC seeks to advance carbon market development and foster synergies in Environmental, Social and Governance (“ESG”) efforts.

The BMB-MFF MOC will also explore synergies between MFF’s programmes and BMB’s efforts to support decarbonisation among companies through avenues such as BCX.

MFF leads the development and implementation of the REDD Plus Finance Framework, which comprises two instruments — the Forest Conservation Certificate (“FCC”) and the Forest Carbon Offset (“FCO”).

The two-year collaboration under the BMB-MFF MOC will explore the following areas: 

1. potential inclusion of FCC support into ESG-themed indices, to promote forest conservation efforts by listed entities; 
2. promote awareness of the national carbon crediting programme once it is established; 
3. identify opportunities for FCO units to be traded through BCX; and 
4. establish potential pathways for synergy in carbon market infrastructure development such as registries and tracking systems, in alignment with national policies and regulatory frameworks. 

The BCX-SEB MOC

The BCX-SEB MOC is for a term of two years and encompasses BCX collaborating with SEB to develop action plans and leverage on BCX’s service to promote and market Renewable Energy Certificates (“RECs”) generated from SEB’s hydroelectric plants.

The collaboration will advance SEB’s aspiration to expand the reach of its hydropower RECs across Malaysia. It will also reinforce the role of SEB and BCX in driving national sustainability efforts, and highlights the strategic importance of hydropower RECs in helping Malaysia meet its environmental and climate-related goals.

The BCX-SEB MOC will cover the following areas: 

1. develop the workplan and requirements for the auctions and implement milestones towards the operationalisation of the auctions; 
2. REC price discovery exercise to assess potential premium arising from Hydropower Sustainability Standard (“HSS”) sustainability certification for SEB’s hydroelectric plant; and 
3. conduct joint awareness and knowledge building programmes to create awareness on sustainability certification such as HSS, credible renewable energy consumption claim, cross border RECs trading, and international attribute tracking standards for RECs. 

The BCX-SEB MOC is the second strategic collaboration between BCX and SEB, the first being a memorandum of collaboration signed at COP28 in Dubai in 2023 together with the Hydropower Sustainability Alliance and the I-REC Standard Foundation.

The NREB-BCX MOC

Earlier, on 8 October 2025, the Natural Resources and Environment Board of Sarawak (“NREB”) and BCX formalised a Memorandum of Collaboration (“NREB-BCX MOC”) to jointly explore the development of the Sarawak Carbon Registry.

The collaboration marks a significant step in Sarawak’s journey to establish a robust carbon management framework and promote sustainable development.

The NREB-BCX MOC provides for a two-year collaboration, during which NREB and BCX will: 

1. review the purposes and understand the objectives of the Sarawak Carbon Registry; 
2. organise capacity building programmes and technical meetings with relevant experts; 
3. explore potential high-level design of the Sarawak Carbon Registry; and 
4. develop a structured action plan for implementation. 

The Sarawak Carbon Registry will be developed in line with the Environment (Reduction of Greenhouse Gases Emission) Ordinance, 2023, which empowers NREB to regulate greenhouse gas emissions and encourage low-carbon strategies across sectors.


Alert by Siti Ayenaa Binti Mohd Anis (Associate) of the Environment, Social and Governance Practice of Skrine.

¹ BCX is operated by Bursa Malaysia Carbon Market Sdn Bhd, a wholly owned subsidiary of BMB.