Carbon credits are typically purchased in the voluntary carbon market by companies to neutralise or compensate for their emissions. The federal government has announced its intention to set up a voluntary carbon market that will allow Malaysian companies to buy carbon credits, creating a reference carbon price in the country. Harmonise the design of voluntary carbon and compliance marketsCompliance carbon markets are those where mandatory national, regional or international regimes trade and regulate carbon allowances. Voluntary carbon markets are those where companies and individuals trade carbon credits on a voluntary basis. Market participants would also need clarity on whether carbon credits can be traded with other carbon markets abroad.
