On July 25, the Malaysia Kuamut Rainforest Conservation Project will release its first round of carbon credits. This is exciting news for companies and carbon market participants, especially after a slow year in the market. However, some regions have recently experienced difficulties in their credit validation process. In contrast, Malaysia is emerging as a strong player in the carbon market, thanks to its abundant arable land and strong government support for climate goals.The Kuamut project covers 84,000 hectares of forest. Its credits are priced between $9.75 to $10 per ton of CO2, which is higher than the average market price. The Singaporean Carbon Credit Exchange (CNX) usually sets the standard price for carbon credits and receives them from various Southeast Asian and Latin American projects. However, the Kuamut project's credits are valued even higher, showcasing their exceptional worth.

Why Kuamut's Carbon Credits Are Highly Valued

Kuamut’s carbon credits are priced higher due to their significant communal and biodiversity benefits. These benefits exceed the standards set by esteemed appraisers like Verra. Besides the carbon evaluations, the project is praised for its operational and logistical capabilities.

To ensure the project's longevity and meet extraction obligations, strong legislation is crucial. Malaysia’s robust legal framework provides land protection and ongoing support, giving customers peace of mind about the project's long-term success.

Strong Legal Framework and Local Support

The project’s high price is also influenced by the nature of the land. Sabah is dedicated to protecting at least 50% of its land for sustainable forest use, environmental protection, biodiversity conservation, and socio-economic well-being (Sabah Forestry Department). Historically, much of Sabah’s forested area was used for logging. The Kuamut Rainforest, once a logging zone, is now an Improved Forest Management (IFM) project. Unlike REDD+ projects that protect existing forests, IFM projects focus on replanting areas previously used for logging.

Setting a New Standard

Malaysia’s involvement in the eco-business world, through projects like Kuamut, is a valuable step in legitimizing the promises made to stakeholders. For future projects to avoid scrutiny, achieve wider adoption, and become more profitable, they must meet the standards set by Kuamut. This project sets a high bar for excellence in the carbon credit space and can serve as a case study for future project organizers.

As we look to the future, the success of the Kuamut Rainforest Conservation Project stands as a beacon of hope and a model for sustainable development. Its higher-than-average carbon credit pricing reflects not only the project’s significant environmental benefits but also its profound impact on local communities and biodiversity. This is a call to action for all stakeholders: the future of our planet depends on collaborative efforts and meaningful investments in projects like Kuamut. By supporting this initiative, you contribute to the preservation of our precious rainforests, the fight against climate change, and the advancement of socio-economic well-being in the region.

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About Fairatmos

Fairatmos is a climate technology company that helps you to discover, develop and deliver high quality carbon offset projects at scale. We believe in the power of nature to heal and remove greenhouse gasses from our atmosphere with the help of technology.

Our technology leverages remote sensing and satellite images to help communities and companies to discover their forest carbon credit potential, converting them from logging the forest to preserving and rehabilitating the forest confidently. 

With high precision monitoring technology, we help to track carbon project performance and integrity, ensuring the social impact and biodiversity preservation. With confidence in integrity, we connect carbon offsetting companies to quality projects. 

Today we have worked with more than 200 asset owners, processing more than 18M hectares of forest carbon potential across South East Asia to deliver the promise of inclusivity.

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