Bursa Carbon Exchange (“BCX” or the “Exchange”), 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 partnership, formalised through a Memorandum of Collaboration (“MOC”) signed
during the MPIA Solar Roadshow 2024 on 16 January 2024, 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; and
(4) Support for the prospective development of an ASEAN voluntary RECs framework.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia Berhad,
commented, “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.
“We are thrilled with our collaboration with BCX, which provides a two-prong benefit,
where we provide access to solar RECs for those who wish to be RE1001 affiliated to
reduce their scope 2 electricity emissions while BCX provides opportunities to MPIA
members to supply solar RECs, thereby generating additional avenue to improve the
financial viability of their photovoltaic (PV) projects. We also believe that the offer of solar
RECs on BCX will make renewable energy more accessible for corporations,” said MPIA
President, Mr. Davis Chong.
BCX, the world’s first Shariah-compliant carbon exchange, was established as a voluntary
carbon market (“VCM”) initiative and this initiative was announced by the Malaysian
Government during the tabling of National Budget 2022. BCX aims to democratise access
to environmental products, thereby fostering a sustainable and resilient environmental
products market. MPIA, a non-profit entity, provides a credible and representative
platform for the Malaysian solar industry, promoting the widespread adoption of solar
energy.
