KUALA LUMPUR, Malaysia has not yet reached a final decision regarding Article 6 Paragraph 2 of the Paris Agreement due to fears that it may affect the Nationally Determined Contribution (NDC) commitment that has been set.
The Minister of Natural Resources, Environment and Climate Change (NRECC), Nik Nazmi Nik Ahmad, said under the carbon market, member countries of the Paris Agreement that want to reach the NDC target can establish bilateral carbon credit trading cooperation with other countries.
“We are still in the process of reaching an agreement on Article 6 Paragraph 2 of the Paris Agreement at the 28th Conference of the Parties (COP28) for the United Nations Framework Convention on Climate Change (UNFCCC) which is in its final days.
“Why are we investigating this matter? If it is under the NDC, it will affect our commitment. So that has an impact on our country,” he said when winding up the debate on the Supply Bill 2024 for the ministry in the Dewan Negara today.
However, he said the government fully supports the carbon market as a method to balance the country’s greenhouse gas (GHG) emissions.
At the domestic level, Malaysia has launched the Shariah-compliant Bursa Carbon Exchange for the Voluntary Carbon Market (VCM), the first of its kind in the world.
In June, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia had revised the NDC to reduce the intensity of greenhouse gas (GHG) emissions by 45 per cent by 2030 compared to the 2005 level as part of the country’s responsibility towards global climate targets as a whole.
Efforts towards achieving the NDC have also been included in the 12th Malaysia Plan and the National Energy Policy (DTN) 2022-2040.
Source: BERNAMA News Agency