Bursa Carbon Exchange: A Step Forward Towards a Green Economy in Malaysia?

DOI

10.2991/978-2-38476-154-8_14How to use a DOI?

Keywords

Paris Agreement; Carbon Neutrality; Carbon Market; Bursa Malaysia Exchange; Carbon Pricing Tools

Abstract

To combat the climate crisis, Article 6 of the Paris Agreement revives the implementation of the carbon credit market which was initiated by the European Union under the Kyoto Protocol with the overarching goal of reducing emissions of greenhouse gases through financial incentive. As a party to the Paris Agreement, Malaysia strives to achieve carbon neutrality by 2050 through the greening of the economy. One of the major commitments is the launch of the first Shariah-compliant carbon exchange by Bursa Malaysia Berhad under the collaboration of the Ministry of Finance and the Ministry of Environment and Water. This initiative is similar to the emissions trading system created in the European Union which provides a platform for companies to trade carbon credits generated from green projects. It is undeniable that Malaysia is relatively new in this project, hence the market is still prone to loopholes. Therefore, the Malaysian government needs to enforce hard policy and regulation to accommodate the carbon credit market as a way of fulfilling Malaysian climate change commitments. This paper aims to explore the feasibility of the carbon credit market in Malaysia to balance the goal of tackling climate change through financial incentives. While elaborating on the proposed concept of carbon market in Malaysia, a doctrinal approach was adopted to prepare this paper by analysing the implementation of this market with the reference to some other selected jurisdictions to know the challenges and possible considerations behind this market.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Irene Xin Hui Ling
AU  - Eng Siang Tay
PY  - 2023
DA  - 2023/12/05
TI  - Bursa Carbon Exchange: A Step Forward Towards a  Green Economy in Malaysia?
BT  - Proceedings of the 3rd International Conference on Law and Digitalization 2023 (ICLD 2023)
PB  - Atlantis Press
SP  - 255
EP  - 265
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-154-8_14
DO  - 10.2991/978-2-38476-154-8_14
ID  - Ling2023
ER  -