KUALA LUMPUR: Bursa Carbon Exchange (BCX) will host its inaugural renewable energy certificates (RECs) auction on June 25, 2024.
This marks a significant step towards the transition of BCX to be a one-stop, shariah-compliant, multi-environmental product exchange.
RECs are a new product offering by BCX, that enabled the trading of carbon credits in September 2023.
Sarawak Energy Bhd will supply the RECs from its Murum hydropower plant for the auction.
This is part of the memorandum of collaboration ("MoC") that Bursa Malaysia 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 last year.
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.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said 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.""Within a few months of starting carbon trading, we have been quick to expand BCX offerings to offer another complementary product in the form of RECs. These two environmental products will serve to provide Malaysian corporates choices when allocating capital for climate action financing," the statement said.
A briefing on the inaugural RECs auction will be held on April 23.