Connect with us

Published

on

In the latest developments in the carbon market, Malaysian University – Universiti Teknologi Malaysia (UTM) and Singapore-based Climate Resources Exchange International (CRX) have collaborated by signing a Memorandum of Understanding (MoU) to spearhead carbon-related projects in Malaysia. This alliance is poised to help both countries leverage their expertise to address the pressing climate challenges.

Unlocking Advantages of the CRX-UTM Partnership in Malaysia

Singapore-based CRX is a carbon management consultancy firm dealing with renewable projects, carbon profiling, carbon offsetting, and carbon trading.

The MoU was signed by the UTM Vice-Chancellor, Professor. Datuk Fauzi and the CEO of CRX, Mr. Vinod Kesava towards the end of March. This collaboration is expected to change the carbon economy of Malaysia.

Mr. Vinod Kesava has highly applauded the partnership and has said,

 “It is our great privilege and honor to collaborate with UTM in addressing the climate emergency and provide credible and pragmatic solutions for climate change mitigation and adaptation. Carbon finance is a critical element in developing robust projects with clear and transparent methodologies for monitoring, reporting, and verification. This cooperation paves the roadmap forward for accelerating initiatives created by putting our heads together and working as one.”

We note them down below:

Fulfill Commitments to the Paris Agreement

One key goal of this partnership is to produce carbon credits in Malaysia, aligning with the nation’s Paris Agreement commitments and net-zero targets. These credits will flow through Malaysia’s voluntary carbon market (VCM) exchange- the Bursa Carbon Exchange (BCX).

(BCX is a shariah-compliant multi-environmental product exchange that facilitates the trading of high-quality carbon credits via standardized carbon contracts.)

Introducing Climate-Friendly Solutions

Both organizations will primarily focus on climate-friendly solutions like:

  • Harnessing blue carbon from oceanic areas
  • Building large-scale afforestation projects
  • Inducting technology in agricultural activities- For example, producing biochar from agricultural waste via controlled pyrolysis.

Malaysia’s forests play a crucial role in reducing climate impact by sequestering approximately 259 MtCO2e annually. This is achieved legally by conserving the forests and demarking protected areas for national parks and wildlife sanctuaries.

Paving the road for EVs.

With the EV revolution happening globally, CRX plans to ramp from EV infrastructure in Malaysia through its registered Electric Vehicle Accelerator (EVA) Grouped Project Activity. Malaysian EV operators will join EVA and generate revenue from carbon credits through their involvement.

Forging a Joint Effort Towards Carbon Credit Development

    • According to McKinsey Nature Analytics, the country has a carbon crediting potential of up to 40 MT of CO2 annually through Nature-based solutions (NBS) projects. This is equivalent to 3% of the global NBS potential.

The collective expertise and resources of academia and industry have the potential to pave the way for a more sustainable future. CRX and the Malaysian university will pool their resources to create premium carbon credits. They would adhere to both compliance and voluntary market regulations through the procurement of carbon finance.

Late last year the organizations had agreed to bolster collaboration in renewable energy. Well, this partnership is an extension of the previous agreement that promised proper carbon capture, utilization, and storage. The expected output would be the generation of high-quality carbon credits in the Malaysian economy.

The CRX-UTM Collaboration: Powering Malaysia’s Net-Zero Drive

Malaysia strongly believes in robust collaboration between government, businesses, academia, and society to propel its net-zero ambition. UTM has supported the Malaysian government’s vision and has established an innovative sustainability agenda known as the UTM Sustainability Blueprint. It serves as a roadmap for sustainable practices within the university.

Professor Datuk Fauzi, Vice-Chancellor of UTM has noted,

“The partnership with CRX is a testament to unwavering commitment to tackling climate change and achieving net-zero emissions. Together, we are creating an unstoppable force that will drive global and local efforts to combat this urgent threat and shape a sustainable future for our planet.”

Furthermore, joining forces with a global brand renders significant recognition for the Malaysian University. CRX’s extensive expertise in international carbon trading offers UTM vast opportunities to engage in carbon credit projects. It will further give the institution exposure to industry stakeholders and governmental agencies in Malaysia.

As discussed by eminent leaders in academia, the collaborative activities between UTM and CRX will facilitate the exchange of knowledge, expertise, and research aimed at effectively addressing the impact of climate change.

The innovative carbon projects will catalyze the emergence of new industries and business opportunities. This, in turn, could contribute to job creation and economic diversification, positioning both Singapore and Malaysia as leaders in the global transition to a low-carbon economy.

All in all, these collaborative activities will bolster Malaysia’s ambition to become a net-zero country by 2050.

The post Singapore’s CRX Partners with Malaysian University for Carbon Projects appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

Published

on

Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Continue Reading

Carbon Footprint

How to buy plastic credits, and what to check before you do

Published

on

A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

Continue Reading

Carbon Footprint

EU carbon credit claims after 27 September 2026

Published

on

EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com