(Kuala Lumpur, 26th) Minister of Plantation and Commodities, Datuk Seri Noraini, pointed out that the ministry is currently exploring the establishment of a carbon-related mechanism in phases through the Malaysian Sustainable Palm Oil Certification (MSPO), including assessing carbon credit models that are suitable for the actual situation of the country’s palm oil industry.
She told Bernama that this initiative will also include reviews of institutional governance, reporting and verification (MRV), data ownership, as well as creating potential value for industry players.
"The aim is to ensure that any mechanism developed has integrity, gains market trust, and can be implemented in practice without undermining the foundation and credibility of the MSPO certification, especially concerning smallholders."
She said that, in principle, the ministry believes that strengthening the sustainable elements of the MSPO should include the reduction, management, and reporting of carbon emissions, which matches the demands of global markets and Malaysia’s commitments to the climate change agenda.
"Against this background, the proposal to include a carbon credit element is seen as one that can bring added value to the industry."
"However, its implementation requires careful and phased assessment, especially in terms of data readiness, integrity of measurement systems, MRV, and adaptability to the local industry structure including smallholders."
Noraini mentioned that the department’s current priorities are to consolidate the existing MSPO certification implementation, including strengthening greenhouse gas calculation and reporting, improving data transparency and integrity, as well as enhancing the traceability system of the supply chain.
"In summary, any MSPO development, including exploring carbon credit elements, will be based on comprehensive research and assessment."
"Implementation will be carried out in cooperation with relevant departments and agencies, industry players, experts, and international partners to ensure a balance between market competitiveness, global compliance requirements, and national interests."
In December last year, the Chairman of FELDA, Datuk Seri Ahmad Shabery, proposed introducing a carbon emission improvement protocol into the MSPO certification, thereby upgrading it to MSPO 3.0.
He said that MSPO 3.0 will integrate carbon accounting and carbon credit mechanisms into the certification process, and suggested the establishment of a national task force, led by the Ministry of Natural Resources and Environmental Sustainability, to ensure that Malaysia creates a palm oil-based carbon credit framework.