Kuala lumpur: The government is set to expand the Forest Conservation Certificate (FCC) instrument to promote broader participation and contributions toward forest conservation and protection efforts. Deputy Prime Minister Datuk Seri Fadillah Yusof announced this initiative, highlighting the FCC as a green financing tool introduced to combat climate change and protect the nation’s strategic natural resources.
According to BERNAMA News Agency, Fadillah explained that the FCC, a non-market-based instrument, will be expanded to stimulate private sector engagement in financing forest and biodiversity conservation activities. This announcement was made at the launch of the MSU Centre for Climate Resilience and Strategy (M-CREST) at Management and Science University (MSU), where MSU President and Founder Prof Tan Sri Dr Mohd Shukri Ab Yajid was also present.
Launched in May last year, the FCC was developed by the Malaysian Forest Fund (MFF) to finance sustainable forest conservation and environmental protection initiatives. In parallel, the Forest Carbon Offset (FCO) is being developed as a market-based solution supporting forest carbon projects, aligning with international standards like Verra and the Gold Standard. Fadillah, who also serves as Energy Transition and Water Transformation Minister, noted that the FCO is in its final development stage and is expected to be operational by the first quarter of 2026.
He further mentioned that the FCO, designed to meet local needs, will function as a national carbon crediting instrument and a significant driver for carbon project development in Malaysia. The FCO’s development aligns with the forthcoming National Carbon Market Policy and complements the Carbon Tax initiative.
Regarding M-CREST, Fadillah described the initiative as timely, emphasizing the global sustainability agenda and the need for stronger stakeholder collaboration to address climate change challenges. He expressed confidence in the center’s potential to become a leading hub for climate change strategies, aligning 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).
Fadillah also encouraged M-CREST to collaborate with the National Water Research Institute of Malaysia (NAHRIM) and the National Water Services Commission (SPAN) to mitigate the country’s climate-related risks. He suggested that the collaboration should include studies on flood mitigation using advanced technologies like Artificial Intelligence (AI) and satellite-based systems.
He added that with ongoing support and strategic partnerships involving industry players, educational institutions, non-governmental organizations, and the public, M-CREST could drive innovative and practical solutions to enhance Malaysia’s resilience against climate change impacts.