Biomass carbon credits to be auctioned on BCX in September

Malaysia’s first technology-based biomass carbon credit project will be auctioned on Bursa Carbon Exchange on September 29. The Verra-registered Malaysia Grouped Biomass Waste Recovery and Utilisation Project in Penang converts high-moisture biomass residues, including palm oil empty fruit bunches and wood chips, into energy that replaces fossil-fuel boilers and turbines. Its first issuance tranche covers vintages 2023 and 2024, with 215,000 credits available, although the auction volume has not been finalized. Project developer Climate Quest has set an indicative reserve price of RM20–RM25 per tonne of CO2e. BCX has auctioned five projects since its launch, including three carbon credit and two renewable energy certificate projects. However, the exchange reports limited voluntary-market liquidity because domestic demand remains weak. Its 2024 auction of credits from Sabah’s Kuamut Rainforest Conservation Project attracted interest, but foreign buyers purchased 98%, highlighting the need to expand Malaysian corporate participation in the voluntary carbon market.
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