Petronas de M’sia and TNB keen to produce carbon credits

Petroliam Nasional Bhd (Petronas) and other listed Malaysian companies have expressed interest in producing credits for a Voluntary Carbon Market (VCM). THE STAR

Petroliam Nasional Bhd (Petronas), Tenaga Nasional Bhd (TNB) and other listed Malaysian companies (PLC) have expressed interest in producing credits for the planned Voluntary Carbon Market (VCM).

Bursa Malaysia CEO Muhamad Umar Swift said that in addition to developing the carbon exchange, he was also looking for parties to produce the carbon credits.

He said the VCM will help Malaysian companies stay competitive in the country’s export markets.

In addition, it will provide a mechanism for Malaysian companies to offset their carbon obligations in exporting countries, Muhamad Umar said during a session on “Business Sustainability and Environment, Social and Governance”. . [ESG] Investing,” organized by the School of Economics, Finance and Banking, Universiti Utara Malaysia, Bernama reported.

Malaysia’s third largest trading partner, the EU, is seeking to impose a tax on imported carbon-intensive products.

Therefore, Malaysian exporters might have to pay a tax to sell their products in the EU market, where VCM could help neutralize the impact, he said.

By achieving carbon neutrality of their products, exporters can ship their products to the EU seamlessly, he added.

“We wanted to see how we can deal with the threat and the opportunity,” said Muhamad Umar.

On ESG, he said that Bursa Malaysia has released a public consultation document seeking feedback on mandatory disclosure of various ESG metrics.

“This will make it easier for investors to understand what companies are doing to meet their ESG requirements,” he said.

Muhamad Umar said the Covid-19 pandemic has put ESG on the roadmap for many companies.

Currently, there were 79 PLCs in the FTSE4Good Bursa Malaysia Shariah Index, which was launched in July 2021 to meet investor demand for ESG and Shariah-compliant index solutions.

THE STAR (MALAYSIA) / ASIA NEWS NETWORK

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