Bursa Carbon Exchange Inks Agreement to Enhance Voluntary Renewable Certificates Market

Malaysia’s Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Berhad, has announced a strategic collaboration with the Malaysian Photovoltaic Industry Association (MPIA), marking a significant step in the enhancement of Malaysia’s voluntary renewable energy certificates (RECs) market.

The new partnership, formalised through a Memorandum of Collaboration (MoC) will focus on four key areas:

(1) Joint promotion of solar RECs, enabling BCX to offer RECs trading to MPIA members, corporate entities and relevant stakeholders.

(2) Advancing market integrity and awareness of RECs ecosystem, focusing on the appropriate usage of RECs and addressing concerns related to double claiming by corporates, including transparent reporting on solar energy claims.

(3) Exploration of potential solar RECs supply from MPIA members for the inaugural RECs auction, continuous trading and off-market transactions on BCX.

(4) Support for the prospective development of an ASEAN voluntary RECs framework.

Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia Berhad said: “The MOC with MPIA signifies our joint support in the implementation of the National Energy Transition Roadmap (NETR), and is a direct response to the growing corporate demand in Malaysia for RECs.”

“This is a crucial step forward in enriching our Exchange’s offering with solar RECs, following our recent collaboration with Sarawak Energy Berhad to include their hydro RECs in our suite of RECs product.”

“We are committed to establishing BCX as a one-stop Shariah-compliant environmental exchange with a suite of offerings, which aligns with Bursa Malaysia’s vision as a multi-asset exchange.”

The collaboration between BCX and MPIA aims to establish a transparent, efficient and cost-effective market for REC transactions. This will contribute towards realising the NETR, where the Renewable Energy (RE) strategic development roadmap envisions a substantial increase in Malaysia’s RE capacity, targeting 70% of installed RE capacity in the power mix by 2050.

BCX, the world’s first Shariah-compliant carbon exchange, was established as a voluntary carbon market (VCM) initiative which aims to democratise access to environmental products.