Bursa Carbon Exchange signs collaboration deal at COP28, paving the way for Renewable Energy Certificates
4 December 2023
Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia Berhad, sealed a Memorandum of Collaboration (MOC) with Sarawak Energy Berhad, the Hydropower Sustainability Alliance (HSA), and the I-REC Standard Foundation during the 28th United Nations Climate Change Conference of Parties (COP28) held in Dubai, United Arab Emirates.
The four-party agreement signifies a collaborative effort between Malaysian and international entities to introduce renewable energy certificates (RECs) on Bursa Carbon Exchange, Malaysia's voluntary carbon market exchange. Sarawak Energy, a leading electricity utility in Sarawak and Malaysia's largest renewable energy developer, joins forces with HSA, an independent standard-setting body for hydropower sustainability, and I-REC Standard, a Dutch non-profit organization focusing on attribute tracking systems for renewable energy.
The Memorandum of Collaboration outlines four key areas of focus:
- Exploring potential supply of RECs from Sarawak Energy.
- Facilitating cross-border RECs trading and international attribute tracking standards using the I-REC platform.
- Raising awareness through joint knowledge-building sessions on sustainability certification.
- Promoting the use of sustainability certifications in conjunction with RECs.
BCX's CEO, Datuk Muhamad Umar Swift, expressed enthusiasm about the collaboration, stating, "BCX aspires to be a global, multi-asset environmental products exchange, to meet the diverse needs of our customers." He added that the collaboration aims to promote the trading of hydropower RECs on BCX, set to launch next year.
Datuk Haji Sharbini Suhaili, Group CEO of Sarawak Energy, emphasized the role of RECs in tracking renewable energy consumption and supporting the global shift to a low-carbon economy. He stated: "Today's signing empowers all stakeholders by promoting awareness of renewable energy and sustainability."
Joao Costa, Executive Director of the Hydropower Sustainability Alliance, praised the collaboration as a model for global cooperation in advancing renewable energy. “By exploring the potential integration of sustainability certifications onto Sarawak Energy’s RECs that will be part of the product offering on BCX, we aim to contribute to a global movement for a more resilient future. We are not only excited to be part of this impactful venture at COP28 but also see it as a model to be replicated globally, showcasing the potential of cooperative efforts to address socio-environmental challenges and create a more sustainable world," he said.
“This collaboration is a perfect example of how countries, companies, and the non-profit community can come together to support the procurement of high-quality clean electricity products, in line with both national and international ambition,” added Roble P. Velasco-Rosenheim, Director of Global Partnerships and APAC at the I-REC Standard Foundation. “We are confident that BCX will provide significant value to the wider 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 Page 3 of 5 the country. Overall, we’re honoured to be a part of the development of a robust market in Malaysia.”
Memorandum of Collaboration signing at the Malaysia Pavilion, COP28, which was formalised by Jared Braslawsky, Managing Director of the International REC Standard Foundation; Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia Bhd; Datuk Haji Sharbini Suhaili, Group Chief Executive Officer of Sarawak Energy; and Joao Costa, Executive Director of the Hydropower Sustainability Alliance.
