Petronas, TNB express interest in producing carbon credits - Bursa CEO

KUALA LUMPUR, 25 AUGUST 2026 —

Petronas, TNB keen to produce carbon credits for Malaysia’s voluntary carbon market

The VCM is intended to help Malaysian firms remain competitive in export markets, particularly the European Union (EU), which is considering a levy on imported carbon‑intensive goods.

“If Malaysian exporters can achieve carbon neutrality for their products, they can ship to the EU without incurring a tax,” Mr Umar said during a session on Corporate Sustainability, Environment, Social and Governance (ESG) Investing organised by the School of Economics, Finance and Banking (SEFB) at Universiti Utara Malaysia. The VCM would therefore provide a mechanism for companies to offset their carbon obligations in export destinations.

Bursa Malaysia is also advancing ESG disclosure. A public consultation document has been issued to seek feedback on mandatory disclosure of various ESG metrics, which Bursa believes will give investors clearer insight into how companies meet ESG requirements. The pandemic has accelerated ESG adoption, Mr Umar noted, and 79 PLCs are currently listed on the FTSE4Good Bursa Malaysia Shariah (F4GBMS) Index, launched in July 2021 to meet demand for ESG and shariah‑compliant investment solutions.

The Employees Provident Fund (EPF) has launched a Sustainable Investment Policy to meet its ESG compliance target by 2030 and a climate‑neutral portfolio by 2050. Permodalan Nasional Bhd (PNB) will also announce an ESG pledge soon. Bursa Malaysia’s PLC Transformation Programme, running through 2025, aims to steer all PLCs toward accelerated growth and improved performance in a changing investment climate that increasingly values ESG.

Two‑thirds of listed companies on Bursa Malaysia experienced losses during the COVID‑19 pandemic, and a downward trend in profitability was observed for some period, Mr Umar said. The VCM and enhanced ESG disclosure are seen as tools to help companies recover and position themselves for future growth.

Background and history of the issue Malaysia’s commitment to climate action has been reflected in its participation in international agreements and domestic policy initiatives. The country’s voluntary carbon market is a recent development aimed at providing a structured framework for companies to generate and trade carbon credits. Petronas and TNB, as leading energy and utilities firms, are natural participants given their significant carbon footprints and existing sustainability programmes.

Current development detail The Bursa Malaysia CEO’s remarks came at a time when the EU is moving forward with a proposed carbon border adjustment mechanism. The mechanism would impose a levy on imports of goods that have high carbon intensity, potentially affecting Malaysian exporters. By producing carbon credits domestically, Malaysian companies could offset the carbon cost of their products, thereby maintaining access to the EU market without additional tax burdens.

Malaysia market impact The introduction of a VCM is expected to create new revenue streams for PLCs that can generate verifiable carbon credits. It also aligns with the broader ESG trend, which is increasingly influencing investment decisions. Bursa Malaysia’s push for mandatory ESG disclosure and the PLC Transformation Programme are designed to enhance transparency and performance, potentially attracting more sustainable investment flows into the Malaysian market.

Sector/company specifics from the source Petronas and TNB have both signalled interest in credit production, but specific projects or timelines were not disclosed. Bursa Malaysia’s consultation on ESG metrics is still in the feedback stage, and the outcomes of this consultation will shape future disclosure requirements. The EPF’s Sustainable Investment Policy and PNB’s forthcoming ESG pledge are part of a wider institutional shift toward sustainability. Outlook Details not yet available.

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