KUCHING: Bursa Carbon Exchange (BCX) now offers continuous trading for renewable energy certificates (RECs).
In a statement, the wholly-owned subsidiary of Bursa Malaysia Berhad (Bursa Malaysia) said this extends its previous RECs auction capability and includes the facilitation of off-market transactions on its platform.
“This development marks a significant milestone as BCX expands its trading offering from voluntary carbon credits to now include voluntary unbundled RECs.
“It reinforces BCX as a one-stop, Shariah-compliant, multi-environmental product exchange, democratising access and creating new opportunities for the market through additional asset classes, investment, and trading choices,” it said.
It stated that BCX’s offering of Malaysian RECs has grown from only hydropower REC previously, and will also include RECs generated from solar photovoltaic, bioenergy and small-hydropower sources.
It explained that this diversification in the RECs-product range will allow local corporations to select RECs based on their specific preferences based on their Scope 2 emissions reduction needs.
“All RECs are issued under the I-REC Standard, a globally recognised standard body, and adhere to the International Attribute Tracking Standard, managed by the I-TRACK Foundation (formerly known as the I-REC Standard).
“The BCX trading platform is accredited by the I-TRACK Foundation, with BCX being the first Malaysian trading platform operator, and one of only eight globally, to receive this accreditation,” it said.
Commenting on this, Bursa Malaysia Chief Executive Officer Datuk Muhamad Umar Swift said that the platform will enable participants to conveniently trade both carbon credits and RECs.
“We are pleased to offer this opportunity for companies to take proactive steps in their sustainability journey. The BCX platform provides a seamless and efficient way for businesses to procure environmental assets such as RECs and carbon credits, supporting their commitment to reducing carbon footprints and promoting renewable energy and decarbonisation projects.
“The availability of RECs continuous trading facilitates the increased adoption of renewable energy in Malaysia, contributing towards objectives in Malaysia’s National Energy Transition Roadmap (NETR).
“Enabling the trading of RECs encourages more renewable energy projects by making them more financially viable and attractive to investors, which supports accelerating the nation’s transition towards a low-carbon economy,” he said.
The healthy interest and price signals shown by the domestic corporate sector during the inaugural auction of RECs, and commencement of continuous RECs trading, has demonstrated local market demand for a transparent pricing mechanism and enhanced accessibility to unbundled RECs.
Therefore, Bursa Malaysia encourages corporates to onboard onto the BCX platform without delay.
“Early onboarding provides benefits such as competitive trading fees, and positions corporations to be well-prepared for their emissions reduction plans and year-end sustainability reporting.
For more information on how to onboard and to start trading, contact BCX at https://bcx.bursamalaysia.com/web/contactus or call +603 2034 7788.
