- Bursa Carbon Exchange said it will be hosting its inaugural renewable energy certificates (RECs) auction marking a step towards the transition of BCX to be a one-stop, Shariah-compliant, multi-environmental product exchange.
RECs is a new product offering by BCX, that first started enabling the trading of carbon credits in September 2023. This aims to underscore Bursa Malaysia’s progress as a multi-asset exchange in democratising access to and creating new opportunities for the market through additional types of asset classes, investment and trading choices.
For the auction, Sarawak Energy Berhad will supply the RECs from its Murum hydropower plant. This is part of the memorandum of collaboration that Bursa Malaysia had signed with Sarawak Energy together with Hydropower Sustainability Alliance (“HSA”) and the I-REC Standard Foundation (“I-REC Standard”) during the 28th United Nations Climate Change Conference of Parties (“COP28”) in December 2023. Sarawak Energy is Sarawak’s electricity utility which is at the forefront of championing the state’s energy transition agenda. The RECs will be issued under the I-REC Standard, a globally recognised standard body, which is renowned for their robust environmental attribute tracking system.
According to Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, “As sustainability becomes an intrinsic necessity for Malaysia to stay relevant and investable as a nation, Bursa Malaysia continues to play a pivotal role in enabling the nation’s implementation of policies and key projects through the capital market. RECs will support Malaysia’s energy transition roadmap (NETR) which targets to substantially increase the country’s renewable energy capacity. We are pleased to collaborate with Sarawak Energy for our inaugural RECs offering.”
