Forest Conservation Certificate To Be Expanded For Wider Private Involvement - Fadillah

SHAH ALAM, Oct 30 (Bernama) -- The government will expand the Forest Conservation Certificate (FCC) instrument to encourage broader participation and contributions toward forest conservation and protection efforts.

Deputy Prime Minister Datuk Seri Fadillah Yusof said the FCC is a non-market-based green financing instrument introduced by the government to address climate change and safeguard the nation’s strategic natural assets.

“In our efforts to tackle climate change and preserve Malaysia’s strategic natural assets, the government has developed two innovative financial instruments — the Forest Conservation Certificate (FCC) and the Forest Carbon Offset (FCO).

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“The FCC will be expanded to encourage participation and contributions from the private sector in financing activities related to forest and biodiversity conservation,” he said during the launch of the MSU Centre for Climate Resilience and Strategy (M-CREST) at Management and Science University (MSU) here today.

Also present was MSU President and Founder Prof Tan Sri Dr Mohd Shukri Ab Yajid.

Launched in May last year, the FCC, developed by the Malaysian Forest Fund (MFF) since 2022, serves as a mechanism to finance sustainable forest conservation and environmental protection initiatives.

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Under the same framework, the FCO instrument is being developed as a market-based solution to support forest carbon projects, aligning with international standards such as Verra and the Gold Standard.

Fadillah, who is also Energy Transition and Water Transformation Minister, said the FCO is in its final stage of development and is expected to be operational in the first quarter of 2026.

He said the FCO, designed based on local needs and specifications, will serve as a national carbon crediting instrument and a key driver for carbon project development in Malaysia.

“The development of the FCO is also aligned with the forthcoming National Carbon Market Policy and will complement the implementation of the Carbon Tax initiative,” he said.

On the establishment of M-CREST, Fadillah said the initiative by MSU is timely, reflecting the global sustainability agenda and the need for stronger collaboration among stakeholders in addressing the escalating challenges of climate change.

The deputy prime minister expressed confidence that the centre would become a leading hub for climate change strategies and initiatives, in line with global goals such as the Sustainable Development Goals (SDGs) and the objectives of the Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change (UNFCCC).

He also urged M-CREST to collaborate with the National Water Research Institute of Malaysia (NAHRIM) and the National Water Services Commission (SPAN) to help reduce the country’s climate-related risks.

Fadillah said the collaboration should include studies on flood mitigation using advanced technologies such as Artificial Intelligence (AI) and satellite-based systems.

“I believe that with continued support and strategic partnerships involving industry players, educational institutions, non-governmental organisations, and the public, M-CREST can become a driving force in delivering innovative and practical solutions to strengthen Malaysia’s resilience against the impacts of climate change,” he said.

-- BERNAMA