Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia Berhad, has successfully launched continuous trading of Renewable Energy Certificates (RECs) on its platform, effective from 9 September 2024. This expansion builds on BCX’s previous REC auction capabilities and introduces the facilitation of off-market transactions.
This significant milestone broadens BCX’s trading offerings from voluntary carbon credits to include unbundled voluntary RECs. It strengthens BCX’s role as a comprehensive, Shariah-compliant environmental product exchange, offering the market new asset classes and trading options.
In addition to hydropower RECs, BCX now offers certificates generated from solar photovoltaic, bioenergy, and small hydropower sources. This diversified product range enables Malaysian corporates to select RECs tailored to their Scope 2 emissions reduction needs. All RECs adhere to the I-REC Standard and are accredited by the I-TRACK Foundation, making BCX Malaysia’s first and one of only eight globally accredited trading platforms.
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,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
He added, “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.”
Local market demand for transparent pricing and accessible RECs has been evident through strong interest in the initial REC auction and the launch of continuous trading. BCX invites corporates to onboard the platform early, offering benefits like competitive fees and better preparedness for sustainability reporting and emissions reduction plans.
