Bursa Carbon Exchange completes inaugural renewable energy certificates auction

Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift.

KUALA LUMPUR: Bursa Malaysia Bhd's subsidiary, Bursa Carbon Exchange (BCX), has successfully carried out its inaugural auction of renewable energy certificates (RECs) for the Hydropower RECs from vintage year 2024 (HRECv24) Contracts.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the execution of its inaugural RECs auction is the direct outcome of the Memorandum of Collaboration signed with Sarawak Energy Bhd at COP28 in Dubai at the end of last year.

"The collaboration has quickly yielded meaningful outcomes - raising awareness level on RECs in the country, enhancing access, and promoting price discovery in the domestic RECs market.

"Next, in the fourth quarter of this year, BCX will be ready to offer RECs via continuous trading, and to facilitate off-market transactions," he said in a statement.

HRECv24 are RECs offered by BCX that is generated from hydropower plants located in Malaysia with the vintage year of 2024, said the exchange.

The online auction saw 15 buyers from various industries purchasing a total of 268,800 HRECv24 Contracts.

Of the 15 buyers, 13 of them are first time successful bidders in BCX’s auctions.

The RECs for this auction were generated from the Murum Hydroelectric Plant in Sarawak, which is developed and operated by Malaysia’s largest renewable energy provider and developer, Sarawak Energy.

It represents the first large-scale sustainable energy project with an installed capacity of 944 megawatts (MW) and the contracts were cleared at RM4.50 per contract.

According to Muhamad Umar, BCX’s upcoming auction will be held on July 25, 2024, wherein Malaysia will witness the offering of the nation’s first nature-based carbon credits, from the Kuamut Rainforest Conservation Project in Sabah.

"The two projects selected for BCX’s inaugural Malaysian RECs and nature-based carbon credit auctions are of national significance as these large-scaled projects are not easy to implement, and are instrumental in moving the climate agenda," he said. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Axis-REIT quarterly performance improves
DPS in Melaka agro-tourism joint venture
Uzma secures RM19mil oil and gas contract
‘Multi-year upcycle set in motion’
Banks not main beneficiaries of data centre boom
Glove sector still facing tough environment
Monetary policy likely to be unchanged
Grab acquires restaurant reservation platform Chope
JCorp profit up 9% to RM2.4bil on higher revenue
Bursa Malaysia likely to post robust 2Q net profit

Others Also Read