Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Berhad, has announced a strategic collaboration with the Malaysian Photovoltaic Industry Association (MPIA) to enhance Malaysia’s voluntary renewable energy certificates (RECs) market. The Memorandum of Collaboration (MOC) was formalized during the MPIA Solar Roadshow 2024 on January 16, 2024, focusing on key areas such as joint promotion of solar RECs, advancing market integrity and awareness, exploring solar RECs supply, and supporting the development of an ASEAN voluntary RECs framework.
The collaboration aims to establish a transparent, efficient, and cost-effective market for REC transactions, contributing to the National Energy Transition Roadmap’s (NETR) vision of a substantial increase in Malaysia’s renewable energy capacity. BCX, known as the world’s first Shariah-compliant carbon exchange, is committed to becoming a one-stop environmental exchange offering a suite of products aligned with Bursa Malaysia’s vision as a multi-asset exchange.
The partnership supports the implementation of the NETR and addresses the growing corporate demand in Malaysia for RECs. This collaboration follows BCX’s recent partnership with Sarawak Energy Berhad to include hydro RECs in its product offerings. BCX and MPIA intend to provide access to solar RECs for those affiliated with RE100, aiming to reduce scope 2 electricity emissions. Additionally, BCX will offer opportunities for MPIA members to supply solar RECs, enhancing the financial viability of their photovoltaic (PV) projects.
BCX, as a voluntary carbon market initiative, seeks to democratize access to environmental products and foster a sustainable environmental products market. MPIA, a non-profit entity, serves as a credible and representative platform for Malaysia’s solar industry, advocating for the widespread adoption of solar energy.
Mr. Davis Chong, President of MPIA, expressed enthusiasm for the collaboration, emphasizing the benefits it brings to both organizations. He believes that offering solar RECs on BCX will make renewable energy more accessible for corporations.
The collaboration aligns with Malaysia’s broader goals of achieving 70% of installed renewable energy capacity in the power mix by 2050, as outlined in the NETR’s Renewable Energy strategic development roadmap.