SEB embraces carbon credits, RECs market for low-carbon future

KUCHING (Aug 11): Sarawak Energy Bhd (SEB) is committed to furthering national sustainability goals and participating in the carbon credits and renewable energy certificates (RECs) market to support the country’s transition towards a low-carbon future.

At the second installment of the Malaysia Carbon Market Forum (MCMF), Sarawak Energy senior vice president (strategy and corporate development) Dr Chen Shiun spoke on the role of carbon credits and RECs in reducing carbon emissions and supporting Malaysia’s shift to a low-carbon energy system.

During the session entitled ‘Taming the Dragon: Role of Environmental Attributes in Energy Transition’, Chen highlighted how carbon credits and RECs are essential for certifying renewable energy generation.

He was part of a panel with Petroliam Nasional Berhad (Petronas) senior vice president (project delivery and technology) Mohd Yusri Mohamed Yusof, Cenergi SEA Berhad chief business development officer Kwok Yew Hoe, and I-TRACK Standard Foundation director (global partnerships and APAC) Roble P. Velasco Rosenheim.

The session was moderated by S&P Global engagement leader (renewable energy market) Ashna Mishra, said a SEB press release yesterday.

As part of the Sarawak government’s Post Covid-19 Development Strategy (PCDS) 2030, SEB is continuing to actively invest in renewable energy, particularly hydropower, as a key growth driver.

The PCDS targets include maintaining a 60 per cent renewable energy capacity mix by 2030, reducing CO2 emissions by 600,000 tonnes annually through electrification of the mobility fleet, and generating over 15 per cent income from foreign markets, including power exports.

“The Sarawak government’s Sarawak Energy Transition Policy (SET-P) unveiled at the 2024 Asia Pacific Green Hydrogen Conference is set to further boost energy transition with its key focus areas which include renewable energy, hydrogen, energy efficiency, green mobility, synthetic fuels, bioenergy, oil and gas, as well as carbon capture, utilisation and storage (CCUS),” said Chen.

He detailed SEB’s projects, including Southeast Asia’s first integrated hydrogen production plant and refuelling station, a 50 megawatts floating solar farm at Batang Ai Hydroelectric Plant, and plans for expanding large-scale solar installations.

He highlighted the successful completion of Bursa Carbon Exchange’s (BCX) inaugural auction of RECs in June this year, which featured RECs generated from Sarawak Energy’s Murum Hydroelectric Plant.

The company has sold over five million RECs to date, a substantial increase from 15,000 sold in 2020 and from when the company first launched its RECs in 2019.

SEB aims to continue growing these numbers by expanding REC sales and exploring new renewable energy projects.

As carbon credit and REC markets grow in Malaysia, Chen noted: “The evolution of these markets reflects a growing commitment to sustainability across industries, as companies recognise the importance of integrating environmental responsibility into their operations.”

“Sarawak Energy’s introduction of the state’s first REC at the Sustainability and Renewable Energy Forum 2019 was pivotal. We were the first utility in Malaysia to do so and since then, the adoption of our RECs has been steadily increasing as corporations align their operations with sustainability goals,” he said.

He expressed optimism about the future of Malaysia’s REC market, with expectations of diverse renewable energy sources coming into play and more businesses engaging in sustainability.

He noted that government initiatives, such as the Green Technology Tax Incentive introduced by the federal government in 2014, have further supported this growth.

The forum also saw the launch of the Malaysia Carbon Market Association (MCMA), of which SEB is a founding member.

The MCMA has been established to facilitate and accelerate the development of Malaysia’s carbon market through inputs towards the formulation of national carbon market policies, talent capability building, and strategic collaboration with domestic and international carbon market participants.

The MCMF that was inaugurated last year is BCX’s annual flagship event dedicated to driving conversations and actions that shape and advance Malaysia’s carbon market.

The forum continues to raise awareness and facilitate knowledge sharing and networking among the business community and carbon market players, with the goal of supporting Malaysia’s and ASEAN’s transition to a low-carbon economy.

This year’s forum attracted over 350 physical and more than 400 virtual attendees from international and local carbon communities.

Penan and Kenyah artisans from the Tegulang Resettlement in Murum showcased their crafts at the event, highlighting BCX’s support for these resettled communities through collaborative efforts with SEB.