Bursa Carbon Exchange signs agreement with Sarawak Energy, 2 others to offer renewable energy certificates in 2024

From left: I-REC Standard managing director Jared Braslawsky, Umar, Sharbini and Costa photographed during the MOC signing ceremony at the Malaysia Pavilion, COP28 held in United Arab Emirates on Dec 4, 2023.

DUBAI, Dec 4: Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Berhad, today signed a memorandum of collaboration (MOC) with Sarawak Energy Berhad (Sarawak Energy), Hydropower Sustainability Alliance (HSA), and the Netherlands’ I-REC Standard Foundation (I-REC Standard) during the 28th United Nations Climate Change Conference of Parties (COP28) held in Dubai, United Arab Emirates.

According to a media release, the quadripartite MOC brings together a collaboration between Malaysian and international organisations to pave the way for offering renewable energy certificates (RECs) on Bursa Carbon Exchange, Malaysia’s voluntary carbon market exchange.

The MOC will explore the potential supply of RECs from Sarawak Energy; facilitate cross-border RECs trading and international attribute tracking standards for RECs using the I-REC platform; raise awareness through joint knowledge-building sessions on sustainability certification, such as the Hydropower Sustainability Standard and understanding credible renewable energy claims; and help promote the use of sustainability certifications in conjunction with RECs, such as by layering the Hydropower Sustainability Standard onto the I-REC’s International Attribute Tracking Standard, to help end-users identify and purchase premium hydropower RECs from BCX.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said by adding RECs to BCX’s existing portfolio of high-quality carbon credits, it aims to provide more options and flexibility for its customers to access and trade environmental products.

“Today, our partners and BCX have formalised this collaboration to promote the trading of hydropower RECs on BCX, which are targeted to be launched next year.

“We are honoured to have Sarawak Energy sign this MOC with us, given that they are a significant renewable energy supplier in Malaysia. We applaud Sarawak Energy’s commitment to obtain Hydropower Sustainability Standard certification for all its hydropower plants.

“Meanwhile, BCX plans to offer RECs from projects complying with the I-REC Standard. This MOC demonstrates our commitment to collaborate with international and domestic partners to advance climate action and support the transition to Net Zero (agenda),” he reportedly said.

Meanwhile, Sarawak Energy Group chief executive officer Datuk Sharbini Suhaili stated that given the increasing awareness and commitment to sustainability among corporates in Southeast Asia, REC plays a key role in ensuring a credible mechanism for tracking renewable energy (RE) consumption and supporting the global transition towards a low-carbon economy.

“Since our REC launch in 2019 during our inaugural Sustainability and Renewable Energy Forum (SAREF) in Kuching, Sarawak Energy has supported various industry players in their sustainability journey through the REC mechanism.

“Today’s signing empowers all stakeholders by promoting awareness of renewable energy and sustainability while reinforcing Sarawak’s hydropower as an essential source of renewable and sustainable energy in Malaysia,” he elaborated.

On the other hand, HSA executive director Joao Costa said by exploring the potential integration of sustainability certifications onto Sarawak Energy’s RECs, which will be part of the product offering on BCX, it aims to contribute to a global movement for a more resilient future.

Additionally, Roble P. Velasco-Rosenheim, director of Global Partnerships and APAC at the I-REC Standard Foundation, expressed confidence that BCX will provide significant value to the broader 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.

“Sarawak Energy’s engagement in the market will facilitate access to end-users across the country. Overall, we’re honoured to be a part of the development of a robust market in Malaysia,” he commented.

Bursa Malaysia plans to offer RECs on BCX in 2024, supporting Malaysia’s net-zero GHG emissions target by as early as 2050 and in line with the country’s National Energy Transition Roadmap. — DayakDaily