KUALA LUMPUR: Bursa Carbon Exchange (BCX) is set to mark a significant milestone with its inaugural auction of renewable energy certificates (RECs) scheduled for June 25, 2024.
This auction signals a pivotal move for BCX as it transitions into a comprehensive, Shariah-compliant, multi-environmental product exchange.
RECs, introduced by BCX in September 2023, represent a new product offering facilitating the trading of carbon credits.
Sarawak Energy Bhd has been enlisted to supply the RECs from its Murum hydropower plant for the upcoming auction. This collaboration stems from a memorandum of collaboration (MoC) inked by Bursa Malaysia, Sarawak Energy, the Hydropower Sustainability Alliance (HSA), and the I-REC Standard Foundation during the 28th United Nations Climate Change Conference of Parties (COP28) in December last year.
Under the MoC, the RECs will be issued in accordance with the globally recognized I-REC Standard, renowned for its robust environmental attribute tracking system.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, emphasized the role of sustainability in Malaysia’s national agenda. He underscored Bursa Malaysia’s commitment to facilitating the nation’s implementation of sustainability policies and key projects through the capital market.
“RECs will support Malaysia’s energy transition roadmap (NETR), aiming to significantly enhance the country’s renewable energy capacity. We are delighted to collaborate with Sarawak Energy for our inaugural RECs offering,” said Datuk Muhamad Umar Swift.
He further highlighted the rapid expansion of BCX’s offerings, stating, “Within a few months of commencing carbon trading, we have swiftly diversified BCX offerings to include another complementary product in the form of RECs. These environmental products will empower Malaysian corporates by providing choices for climate action financing.”
A briefing on the inaugural RECs auction is scheduled to take place on April 23.