KUALA LUMPUR (Dec 4): Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Bhd, has signed a memorandum of collaboration (MOC) with Sarawak Energy Bhd, Hydropower Sustainability Alliance (HSA) and the I-REC Standard Foundation to pave the way for the offering of renewable energy certificates (RECs) on the voluntary carbon market exchange.
In a statement, Bursa Malaysia said the MOC was signed during the UN Climate Change Conference of Parties (COP28) in Dubai, United Arab Emirates on Monday.
Sarawak Energy is a vertically integrated electricity utility serving the state of Sarawak and also Malaysia’s largest renewable energy developer.
HSA is an independent and multi-stakeholder standard-setting body that governs the hydropower sustainability standard assessment and certification, while I-REC Standard is a non-profit organisation based in the Netherlands that provides a standard for developing attribute tracking systems for RE.
The scope of the MOC will cover four areas; to explore the potential supply of RECs from Sarawak Energy, to facilitate cross-border REC trading and REC international attribute tracking standards using the I-REC platform, to raise awareness through joint knowledge-building sessions on sustainability certification and to help promote the use of sustainability certifications in conjunction with RECs.
Bursa Malaysia plans to offer RECs on BCX in 2024, in support of Malaysia’s net-zero GHG emissions target by as early as 2050, and in line with the country’s National Energy Transition Roadmap.
Its chief executive officer Datuk Muhamad Umar Swift said adding RECs to its existing portfolio of high-quality carbon credits will give its customers more options and flexibility to access and trade environmental products.
“BCX aspires to be a global, multi-asset environmental products exchange to meet the diverse needs of our customers.
“This MOC demonstrates our commitment to collaborate with international and domestic partners to advance climate action and support the transition to net zero,” Muhamad Umar said.
I-REC Standard director of global partnerships and Apac Roble P Velasco-Rosenheim said the organisation is confident that BCX will provide significant value to the wider Malaysian market by facilitating transactions.
“At the same time, HSA will improve the selection process of end-users by making it easier to credibly select RECs from sustainable hydro generation assets," said Velasco-Rosenheim.
Additionally, Sarawak Energy’s engagement in the market will facilitate access to end-users across the country, he said.