Forest Carbon Offset Gap Analysis in Malaysia

The Malaysian government is seeking sustainable financing to support forest conservation and restoration efforts, while also addressing national priorities related to forestry, biodiversity, and climate change. The Malaysia Forest Fund (MFF) is looking to implement the Forest Carbon Offset (FCO) mechanism, which enables the transfer of emissions reductions from forests to buyers in the form of carbon offsets. This project involves a thorough review and compliance assessment of the FCO mechanism to ensure it aligns with internationally recognized carbon crediting standards, avoiding overlap with existing trading platforms like Bursa Carbon Exchange, which focuses on the buying and selling of carbon credits rather than their production and certification. Key activities for this project include: - Conducting a benchmarking and gap assessment, and drafting documents that comply with standards. - Organizing and participating in a workshop with MFF to finalize project scope and expectations. - Reviewing current FCO documentation against the requirements of CORSIA and ICVCM. - Identifying gaps related to additionality, permanence, monitoring, reporting and verification (MRV), baselining, co-benefits, contributions to Sustainable Development Goals (SDGs), leakage management, and social and environmental safeguards. - Conducting peer reviews and consultations, and preparing necessary documentation for applications to CORSIA and ICVCM. - Providing technical support to MFF in harmonizing and accrediting the FCO, including assistance with applications to accrediting bodies, with the first application planned for February 2026. - Supporting due diligence and methodological improvements, interpreting international laws and standards, advising on revisions to FCO instruments, and contributing to institutional learning. - Developing a practical toolkit based on lessons learned for MFF's future applications. - Offering ongoing technical advice to support the harmonization of the FCO. - Participating in fund-wide communities of practice to share results and lessons learned, including contributing to potential case studies. - Engaging in promotional activities to encourage the use of the FCO in Malaysia's carbon markets as requested by MFF and UK PACT. Interested suppliers should submit their quotes to Expertdeployments@ukpact.co.uk by the specified deadline. This request for quotation (RFQ) includes the following materials: - Schedule 1 - Terms of Reference - Schedule 2 - Instructions for submission - Schedule 3 - Terms and Conditions - Annex I - RFQ Response Form - Annex II - Budget and workplan template.