ASEAN-BAC Malaysia’s Post

In a significant step towards mitigating the effects of climate change, Malaysia and Singapore have signed a memorandum of understanding for international carbon trading, marking a pivotal moment for both nations and the broader Southeast Asian region. This agreement positions Malaysia as a newcomer to the bilateral carbon trading landscape and emphasises Singapore's established role in global carbon markets. The collaboration aims to unlock the potential of regional carbon markets and facilitate cross-border trade through the Johor-Singapore Special Economic Zone. Moreover, the proposed ASEAN Common Carbon Framework seeks to enhance market liquidity and interoperability. As the global carbon market evolves, Southeast Asia stands to play a prominent role, provided that nations like Malaysia and Singapore lead the charge in climate diplomacy. For those seeking to understand developments like this and navigate the complexities of carbon pricing and regulatory frameworks, CarbonAI offers a premier solution for tracking emerging developments and effectively engaging with carbon market dynamics. Find it below: https://carbon.eco Explore answers to impactful questions related to the issues here: https://lnkd.in/ecHQguTz #SCBWeNeverStop

Malaysia has made progress in the Sustainable Development Goals (#SDGs), achieving 43% of 248 indicators, surpassing the world average of 17%, said Prime Minister Dato’ Seri Anwar Ibrahim at the 2024 SDG Summit. He highlighted that this achievement is only a small indication and called for continued efforts to meet the ideals of the #MADANI Economy and SDGs. PM also reaffirmed Malaysia’s commitment to #sustainabledevelopment and urged action to address #economic, #social and #environmental challenges, while promoting values of humanity and justice.  Read more: https://lnkd.in/gJnDA3J4

Thrilled to have moderated this insightful panel featuring Ibu Kuki Soejachmoen, Dr Renard Siew, Mba Natalia Rialucky Marsudi and Pak William Sabandar as our esteemed speakers. Pak Dharsono Hartono opened the session with remarks highlighting the Carbon Centre of Excellence (CCoE) which aims to foster collaboration between policymakers, industry leaders, and experts to drive emissions reduction and unlock economic opportunities. Pak Dharsono also emphasized the role of Indonesia’s natural assets and climate innovation potentials. Indonesia 🇮🇩 , with its vast archipelago and significant carbon sinks, has the potential to become a global carbon hub. By leveraging these natural assets, Indonesia can supply carbon credits to both domestic and international markets. Now that we have the ASEAN Common Carbon Framework, we can further advocate for mutual recognition across the region, driving consistency and cooperation in carbon markets. My key takeaways from the session can be summarized with the "4Cs": 1) Clarity – A clear policy framework and direction are essential for market confidence and long-term success. 2) Collaboration – Strong collaboration is needed across the board, including between public and private sectors, and among ASEAN countries. 3) Coherence – Harmonized methodologies and standards across ASEAN, ensuring that regional and international frameworks are aligned to facilitate cross-border carbon trading and attract the capital necessary for scaling conservation and sustainability efforts. 4) Cohesiveness – Institutional cohesiveness is crucial to ensure that policies, enforcement, and actions are coordinated effectively, fostering a unified approach to carbon market development. As we move forward, let's continue to work together to unlock Indonesia's potential and lead the way in high-quality carbon trading, not only for our region but for the broader international community.

The traditional paradigm of #globalization is shifting, with geopolitical factors reshaping trade and investment flows. 🌐 #GlobalSupplyChains are rebalancing, and the emergence of “connector” countries plays a key role in redistributing trade and investment, offering new growth opportunities. More than deglobalization, and in parallel to decoupling, “dualization” with two blocs and the overlap of connector countries, are reshaping global trade and investment flows. At the recent Malaysian Palm Oil Council (MPOC) Forum Kuala Lumpur, Denis Depoux, our Global Managing Director, opened the agenda by delving into the trends. ⬇️ #ASEAN continues to demonstrate economic resilience, attracting significant regional and global investment despite ongoing global tensions. #Malaysia, with its strategic location and strong economic fundamentals, is positioned to capitalize on these shifts. However, navigating this new era will require countries and businesses to rethink their strategies to stay competitive. There has been a surge in governmental interventions since 2018 aimed at addressing #StrategicCompetitiveness and #ClimateChange, creating new compliance challenges for supply chains. Tariff and non-tariff barriers are on the rise, and companies need to adapt to these changes to maintain market access. Some interventions are regarded as protectionist moves. Yet, in the case of EU #CBAM (Carbon Border Adjustment Mechanism), or palm-oil related #EUDR (European Union Deforestation Regulation), Europe is setting new standards for access to its own large, open and transparent market, for the world to improve. #RolandBerger

Malaysia saw a surge in foreign investment in 2023, exceeding RM329 billion. The government has also introduced initiatives like tax incentives for foreign manufacturers relocating to the country. 📉While this is a boon for economic growth, it raises concerns about the environmental impact.   🔍 Researcher Zayana Zaikariah emphasises the need for a science-driven approach to address climate risks and ensure sustainable growth.   👉 Read her insights into how Malaysia can balance economic progress with environmental protection: https://lnkd.in/gYc9VA6n #ISISMY #thinktank #greeneconomy #climatechange #sustainabledevelopment #investments #malaysia

We are pleased to have convened a dialogue on “Indonesia as the World Carbon Centre” at the Indonesia International Sustainability Forum (ISF) 2024 last week. On the first day of IISF 2024, the ASEAN Alliance on Carbon Markets (AACM) partnered with the Carbon Centre of Excellence by the Indonesian Chamber of Commerce and Industry. Inaugurated by the Permanent Chair of AACM Dharsono Hartono, this dialogue distinguished speakers from leading organisations in the field: ✅ Natalia Rialucky Marsudi, CEO of Fairatmos ✅ Kuki Soejachmoen, Director at Indonesia Research Institute for Decarbonization ✅ Dr Renard Siew, President of Malaysia Carbon Market Association ✅ William Sabandar, COO of Indonesia Business Council moderated by Saraya Cita Asmarani, as part of the Executive Secretariat of AACM Key takeaways from the dialogue include the importance of international collaboration, clear policy framework, coherent strategies and methodologies, and institutional cohesiveness in driving the development of carbon markets forward. We thank all participants for their valuable contributions to this essential conversation. Stay tuned in our social media for more insights on carbon market. #IISF #IndonesiaSustainabilityForum #AACM #Indonesia #CarbonMarket

Recently I have been interested in understanding carbon markets in Malaysia and ASEAN. So, this weekend's read (or listen?) is this podcast with Dr Wei Nee Chen, the Head of Carbon Markets of Bursa Malaysia. One of the clearest, more accessible, and well explained interviews out there on the Malaysian carbon market - so I thought to share! Some of my key takeaways from this podcast: - Since December 2022, Malaysia has had a Voluntary Carbon Market selling carbon credits, with the eventual goal of transitioning to a compliance-based mechanism. - This market is run through the Bursa Carbon Exchange and it is the world's first Sharia compliant exchange. Once known as the Malaysian national stock exchange, Bursa has now transitioned/rebranded as a multi-asset exchange. Its carbon exchange provides auctions, continuous trading and facilitates off-market transactions. - In response to feedback, the Bursa Carbon Exchange expanded its environmental attributes offering to also facilitate buy/sell of Renewable Energy Certificates (RECs) - As Malaysia takes over the chairmanship of ASEAN in 2025, it will be seeking to improve regional collaboration on carbon markets. - One key agenda is to establish an ASEAN Common Carbon Framework (ACCF), which seeks to establish standards for products unique to the South East Asian region that current independent standards perhaps don't yet provide. It also seeks to and mutually recognise national standards and to create an interoperable ASEAN carbon market, boosting credibility and demand. - On the sidelines of COP29 last year, an MoC has already been signed among the Carbon Market Trade Associations of 5 ASEAN member states, signalling a commitment toward the implementation of this framework - Domestically, Malaysia in collaboration with the World Bank are looking at long term compliance mechanisms - to implement a carbon tax or an emission trading scheme? - Bursa's house view is that it's better to implement an emission trading scheme; albeit a carbon tax will be easier administratively. The study is still ongoing and the Malaysian government, under the Ministry of Natural Resources and Environmental Sustainability (NRES) will make a decision soon. - NRES is also currently drafting its carbon market policy, which will include wider details on Malaysia's plans. Alongside the National Climate Change Bill, NDC roadmap, Long Term Low Emission Development Strategy (LT-LEDS) and National Adaptation Strategy. All of which are close to completion Overall, an exciting time in Malaysia - summarised succintly in an excellent interview! Looking forward to 2025.

We are less then 10 days to the Malaysia Carbon Market Forum 2024! As ASEAN member countries have always come together to realise common goals, 2025 could be a defining year to forge ahead together on sustainability. While the global stage continues to grabble with standards, confidence and market mechanisms - ASEAN can move the needle at home, and for each other. Our discussions in Plenary 3 will centre around “Creating a High Integrity ASEAN Carbon Market, Facilitating Supplies of High-Quality Carbon Credits.” Thinking about how we can mobilise the private-sector to support the creation of high-quality carbon credits in the region, and how stakeholders can come together to create a high-integrity ASEAN carbon market that is greater than the sum of all domestic carbon markets and exchanges? Get these questions answered and many more with Gloyta Nathalang from Bangchak Corporation Public Company Limited, Thailand Carbon Markets Club, & Thailand Carbon Neutral Network (TCNN), Aruna Pradipta from Fairatmos, Dr Renard Siew from Yinson, Dang Hanh from VNEEC, and Fauziah Marzuki from BloombergNEF. To find out more, please visit: https://lnkd.in/gqVeUjas #MCMF24 #BCX #IETA #VCM

🌍 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗖𝗕𝗔𝗠 𝗼𝗻 𝗚𝗹𝗼𝗯𝗮𝗹 𝗧𝗿𝗮𝗱𝗲🌱 The EU's Carbon Border Adjustment Mechanism (CBAM) is set to reshape international trade by targeting high-emission sectors like steel, cement, and aluminium. 🌐 As CBAM enforces stricter carbon regulations, industries worldwide will need to adapt to stay competitive. But what does this mean for countries like Indonesia? As global policies tighten, Indonesia’s commitment to reducing GHG emissions and implementing sustainable practices becomes increasingly vital to access international markets. Dive into our latest article to explore how CBAM could influence trade dynamics and what Indonesia is doing to meet these new challenges. 🚀 click here to read more: https://lnkd.in/g34ACuNA #CBAM #GlobalTrade #ClimateAction #GreenEconomy #SustainableTrade #GHGReduction #CarbonEconomy #EUETS #NetZero

ASEAN-BAC Malaysia recently participated in the Focus Group Discussion (FGD) to provide input for the development of the ASEAN Community Vision 2045 and ASEAN Connectivity Strategic Plan (ACSP). Co-organised by The ASEAN Secretariat and ERIA: Economic Research Institute for ASEAN and East Asia, public and private sector representatives convened to discuss, debate, and debottleneck the key challenges and strategies in critical areas of the ASEAN Master Plan on Connectivity (MPAC) 2025. During the Regulatory Excellence and Cooperation session, Jukhee Hong, Executive Director of ASEAN-BAC Malaysia, emphasised the need to simplify and harmonise the various standards and regulations to reduce cross-border trade complexity in ASEAN. These efforts can align with ASEAN-BAC Malaysia’s key initiatives in cross-border investment, capital flows, talent mobility, sustainability reporting and carbon market to ensure that new regulatory measures do not impede the growth of MSMEs in ASEAN. The insights and strategic actions developed at the FGD will be pivotal in realising the ACSP’s vision. ASEAN-BAC Malaysia reaffirms our commitment to fostering collaboration towards a more connected and resilient ASEAN by 2045. #ASEAN #ACV2045 #Connectivity #RegulatoryCooperation