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The building sector in Malaysia is a significant contributor to national greenhouse gas (GHG) emissions, driven by high electricity demand in large commercial and institutional buildings. Energy efficiency retrofitting presents a cost-effective pathway for reducing emissions, yet its implementation remains limited due to financial, institutional, and technical barriers. Monetisation of emission reductions through carbon markets offers a potential solution, but most existing methodologies are designed for large-scale or industrial applications and are poorly suited to small, fragmented retrofit projects. This study evaluates the applicability of internationally recognised carbon credit methodologies to support an aggregation-based retrofit framework for Malaysia’s building sector, particularly that of small-scale interventions. A structured review of eight methodologies from the Clean Development Mechanism (CDM) and Verra’s Verified Carbon Standard (VCS) was conducted using five criteria: activity scope, baseline setting, additionality, MRV complexity, and aggregation potential. Findings indicate that small-scale methodologies such as AMS-II.C, AMS-II.J, AMS-II.E, and VMR0006 offer streamlined MRV procedures, guided additionality tools, and strong compatibility with programmatic implementation. These features make them particularly suitable for supporting carbon credit generation in Malaysia’s voluntary carbon market. Beyond methodological evaluation, the study develops a policy pathway that aligns these international tools with Malaysia’s emerging voluntary carbon market and institutional ecosystem, identifying key roles for aggregators, regulators, and MRV infrastructure. This research provides foundational insights for integrating carbon finance into Malaysia’s building sector, supporting national decarbonisation goals while enabling broader participation in carbon markets.