BURSA CARBON EXCHANGE TO OFFER RENEWABLE ENERGY CERTIFICATES

KUALA LUMPUR, April 18 (Bernama) -- Bursa Malaysia Bhd’s wholly-owned subsidiary, Bursa Carbon Exchange (BCX) is set to host its inaugural renewable energy certificates (RECs) auction on June 25, 2024.

In a statement, the regulator said this auction marked a significant step towards the transition of BCX to be a one-stop, Shariah-compliant, multi-environmental product exchange.

As sustainability becomes an intrinsic necessity for Malaysia to stay relevant and investable as a nation, Bursa Malaysia will continue to play a pivotal role in enabling the country’s implementation of policies and key projects through the capital market, said chief executive officer Datuk Muhamad Umar Swift.

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“RECs will support Malaysia’s Energy Transition Roadmap which targets to substantially increase the country’s renewable energy capacity,” he said.

Expanding on BCX's significance, Muhamad Umar highlighted that within a few months of initiating carbon trading, Bursa Malaysia swiftly broadened BCX offerings to introduce another complementary product: Renewable Energy Certificates (RECs).

“These two environmental products will serve to provide Malaysian corporates choices when allocating capital for climate action financing,” he said.

Bursa Malaysia said RECs is a new product offering by BCX which commenced trading carbon credits in September 2023.

It will be issued under the I-REC Standard Foundation -- a globally recognised standard body, renowned for its robust environmental attribute tracking system.

As for the auction, Sarawak Energy Bhd will supply the RECs from its Murum hydropower plant.

This was part of the memorandum of collaboration that Bursa Malaysia had signed with Sarawak Energy together with Hydropower Sustainability Alliance and the I-REC Standard Foundation during the 28th United Nations Climate Change Conference of Parties in December 2023. 

Bursa Malaysia said a briefing on the inaugural RECs auction will be held on April 23, 2024, adding that the BCX platform will be ready for continuous trading, including facilitating off-market transactions for RECs by end-September 2024.

-- BERNAMA