BCX, MPIA collaborate to enhance voluntary RE certificate market

PETALING JAYA: Bursa Carbon Exchange (BCX), a wholly owned subsidiary of Bursa Malaysia Bhd, is collaborating with the Malaysian Photovoltaic Industry Association (MPIA) to enhance Malaysia’s voluntary renewable energy certificate (REC) market.

The partnership, formalised through a memorandum of collaboration (MoC) signed during the MPIA Solar Roadshow 2024 on Tuesday, will focus on four key areas:

0 Joint promotion of solar RECs, enabling BCX to offer REC trading to MPIA members, corporate entities and relevant stakeholders;

0 Advancing market integrity and awareness of REC ecosystem, focusing on the appropriate usage of RECs and addressing concerns related to double claiming by corporates, including transparent reporting on solar energy claims;

0 Exploration of potential solar REC supply from MPIA members for the inaugural REC auction, continuous trading and off-market transactions on BCX; and

0 Support for the prospective development of an Asean voluntary REC framework.

Bursa Malaysia Bhd CEO Datuk Muhamad Umar Swift said the MoC with MPIA signifies their 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 Bhd to include their hydro RECs in our suite of REC products. We are committed to establishing BCX as a one-stop syariah-compliant environmental exchange with a suite of offerings, which aligns with Bursa Malaysia’s vision as a multi-asset exchange,” he added.

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 Davis Chong.

BCX, the world’s first syariah-compliant carbon exchange, was established as a voluntary carbon market initiative and this initiative was announced by the 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.