The Malaysia Forest Fund (MFF) launched the Forest Conservation Certificate (FCC) to channel private sector funds into forest conservation projects, meeting ESG reporting requirements for companies. The FCC is part of Malaysia’s REDD Plus Financial Framework (RFF) and complements the Ecological Fiscal Transfer (EFT) program, which funds state governments for biodiversity and forest protection.

The FCC allows for smaller, tailored conservation projects and cannot generate carbon credits or support offset activities. This role will be fulfilled by the developing Forest Carbon Offset (FCO) standard. The Ministry of Finance approved a 10% tax deduction for companies participating in FCC activities and granted RM5 million for the Forest Carbon Project Development Fund.

MFF also signed memorandums of understanding with Angkatan Koperasi Malaysia Bhd and Layang Kaji Sdn Bhd to collaborate on FCC projects. These initiatives aim to address environmental challenges and enhance forest conservation efforts across Malaysia.