BAKU, Azerbaijan, Nov. 20, 2024 /PRNewswire/ -- Malaysia has embarked on a landmark partnership with carbon market associations from nine other ASEAN nations through the signing of a Memorandum of Cooperation (MOC) aimed at developing a unified carbon framework, the ASEAN Common Carbon Framework (ACCF).

As the third-largest trader in the world, this strategic agreement is set to enhance carbon market efficiencies across the region, effectuate the green finance transition and secure bloc's global competitiveness in the future.

It also comes as Malaysia prepares for the ASEAN Chairmanship 2025 and complements the country's ambitious commitment to reduce the intensity of its carbon emissions by 45% (compared to 2005 levels) by 2030.  

Minister of Natural Resources and Environmental Sustainability, YB Nik Nazmi Nik Ahmad said, "This collaboration reflects Malaysia's growing recognition of the urgency to address climate change, and is part of the initiatives that we hope to potentially operationalise as the ASEAN Strategy for Carbon Neutrality when Malaysia takes over the chairmanship of ASEAN in 2025. The ACCF is both timely and essential as it aspires to unlock carbon project  opportunities that is unique to the ASEAN region and at the same time, create stronger demand signals through interoperable carbon markets in this region, allowing us to build an integrated, efficient, and credible carbon market, fostering regional cooperation and accelerating low-carbon investments."

ASEAN members representing a population of more than 600 million people, covering 4.5 million km² land area, the combined Gross Domestic Product has raked up to USD 3.8 trillion in 2023, making it the world's fifth-largest economy. Thus, projections indicate that by 2030, ASEAN is poised to ascend to the position of the world's fourth-largest economy.

With a unified carbon market framework and strategic partnerships, the ASEAN collaboration is set to unlock carbon project opportunities that are unique to the region and simultaneously send a stronger demand signal to the world. The interoperable carbon markets creates a bigger market of supply and demand for carbon credits while fostering a cohesive carbon ecosystem that supports ASEAN's overarching green finance goals.

By aligning standards, regulations, and trading mechanisms, Malaysia and other ASEAN Member States play a transformative role in generating and trading carbon while synergising its trading processes to ensure an efficient, transparent, and beneficial market for all participating economies.

To deepen and broaden ASEAN's regional integration for years and generations to come, Malaysia will continue to reinforce its position in the region as an "Epicentrum of Growth". This is not only to cement the country's position to capture full value of regional green value chains and increase liquidity in regional markets, but to fulfil and grow the individual Nationally Determined Contributions (NDCs).

At COP29, negotiators achieved a major breakthrough by reaching consensus on standards for an international carbon market under Article 6.4 of the Paris Agreement. These standards have established a centralised framework for carbon credit trading, designed to drive down global emissions more affordably with direct substantial financial resources to developing nations, emphasising its potential to save up to $250 billion annually in climate action costs.

The Malaysia Pavilion at COP29 is spearheaded by the Ministry of Natural Resources and  Environmental Sustainability (NRES) in collaboration with the Malaysian Green Technology and Climate Change Corporation (MGTC) as the implementing agency. The Pavillion and our country's participation is proudly supported by Tenaga Nasional Berhad (TNB), Petroliam Nasional Berhad (PETRONAS), Malaysian Palm Oil Council (MPOC), Malaysian Palm Oil Green Conservation Foundation (MPOGCF), Felda Global Ventures Holding Berhad (FGV), SD Guthrie Bhd, Malayan Banking Berhad (Maybank), Bank Pembangunan Malaysia Berhad (BPMB), Kloth Wear and De Carton.

For more information regarding the Malaysian Pavilion at COP29, visit https://malaysiapavilion-cop.com/.

About the Malaysian Pavilion

Malaysia is proud to present our Malaysia Pavilion at COP29, built around the theme "Shift for Sustainability: Climate Action Now". This theme emphasises the urgency of addressing climate change with immediate, bold actions. Through a whole-of-nation approach, Malaysia is committed to collaborating with all sectors—government, businesses, and communities—to create a sustainable and resilient future for all.

Join us at the Malaysia Pavilion as we showcase our nation's innovative solutions for climate action, from green urban development to energy transitions, biodiversity preservation, and more.