Landmark Report Launch on Integrity and GESI Outcomes in the Emerging Voluntary Carbon Market in Malaysia
On 30 May 2025, Transparency International Malaysia proudly launched its landmark report on the Integrity and Gender and Social Inclusion (GESI) Outcomes in Malaysia's Emerging Voluntary Carbon Market. This initiative is developed under TI-Malaysia's Climate Governance Integrity Programme with support from the Waverley Street Foundation, highlights both the opportunities and governance risks facing Malaysia's voluntary carbon market (VCM), which has gained momentum since the launch of the Bursa Carbon Exchange (BCX) in 2022. While the market holds strong potential, the report warns of critical gaps in transparency, oversight, grievance mechanisms, and the meaningful inclusion of women, Indigenous peoples, and marginalized groups. The report was developed through extensive research, roundtable discussions, interviews with key stakeholders, industry experts, government institutions, local communities, civil society organizations, and academics, ensuring a well-rounded perspective on its findings and implications.
Malaysia has the potential to lead in climate finance, but integrity, accountability, and inclusivity must be at its core. TI-Malaysia's latest report highlights the governance risks facing the voluntary carbon market and calls for urgent action.
Key Highlights:
✅ Limited transparency on environmental and social impact assessments, revenue-sharing models, and beneficial ownership data.
✅ Lack of national grievance mechanisms, leaving affected communities dependent on foreign or project-led systems.
✅ Weak Gender Equality and Social Inclusion (GESI) integration, increasing the risk of excluding vulnerable groups.
✅ Urgent need for long-term, locally driven capacity-building to support Indigenous- and
women-led climate projects.
Policy Recommendations:
🔹Stronger anti-corruption safeguards, including enhanced due diligence, more explicit conflict-of-interest rules, and corporate whistleblower mechanisms.
🔹Greater transparency and independent oversight involving civil society, media, and local communities.
🔹A shift from box-checking compliance to people-centred approaches, prioritizing social and environmental integrity over transaction volume.
Malaysia can set a regional benchmark—but integrity and inclusion must be non-negotiable foundations, not afterthoughts.
Link to Report (ENG Ver): Integrity and Gender and Social Inclusion (GESI) Outcomes in Malaysia's Emerging Voluntary Carbon Market
