Kuala lumpur: The Plantation and Commodities Ministry (KPK) is exploring the phased development of carbon-related mechanisms through the Malaysian Sustainable Palm Oil (MSPO) certification, including assessing the suitability of carbon credit models aligned with the country's palm oil industry.

According to BERNAMA News Agency, Minister Datuk Seri Dr Noraini Ahmad stated that this effort will involve studying the institutional governance, monitoring, reporting and verification (MRV), and data ownership aspects, as well as the value creation potential for industry players. She emphasized the need for any mechanism developed to be credible and trusted by the market, while remaining practical for implementation, particularly for smallholders.

Noraini highlighted that the ministry's efforts to strengthen sustainability elements in MSPO, such as the reduction, management, and reporting of carbon emissions, are aligned with global market requirements and Malaysia's commitments to the climate change agenda. The integration of carbon credit elements within the MSPO is seen as having value-added potential to the industry. However, its implementation requires careful and phased study and evaluation, especially in terms of data readiness and the robustness of measurement systems.

The current priority for KPK is to enhance the foundation of the existing MSPO certification implementation. This includes improving greenhouse gas (GHG) calculation and reporting, enhancing data transparency and integrity, and strengthening the system for supply chain traceability. Any development within MSPO, including the exploration of carbon credit elements, will be based on comprehensive study and evaluation, involving engagement with relevant ministries, agencies, industry players, experts, and international partners.

In December last year, Federal Land Development Authority (FELDA) chairman Datuk Seri Ahmad Shabery Cheek proposed the introduction of a carbon enhancement protocol into the MSPO certification, effectively transforming it into MSPO 3.0. MSPO 3.0 would integrate carbon accounting and crediting mechanisms into the certification process. Ahmad Shabery also proposed the establishment of a national task force led by the Ministry of Natural Resources and Environmental Sustainability to develop an oil palm-based carbon credit framework.