Voluntary carbon markets catalyse and provide financial incentive for developing and implementing mitigation activities, such as those reforesting mangroves and wetlands, or avoiding deforestation, or facilitating the improved or sustainable management of forested areas, or technology-based solutions that support emissions avoidance, reduction or removal from the atmosphere.

For Malaysia, a well-structured VCM could unlock Malaysia’s significant potential to generate nature-based carbon credits through its vast forest. The VCM can also provide a cost-recovery measure for corporates to implement climate-friendly technologies and solutions to decarbonise their operational carbon footprints.

At the state level, a VCM can spur forestry conservation projects that will provide both economic and environmental benefits. For instance, nature-based carbon project development can bring about additional benefits, such as multiplier effects on the local and state economy, on top of conservation and environmental benefits.

Companies (buyers) would benefit from purchasing carbon credits generated locally or internationally, demonstrating their commitment to sustainability by voluntarily offsetting some of their carbon emissions.