Following the issue of a media release on 18 April 2024¹ by Bursa Malaysia Berhad (“Bursa Malaysia”) announcing that Bursa Carbon Exchange² (“BCX”) will be hosting its inaugural auction of renewable energy certificates (“RECs”), Bursa Malaysia announced in a further media release issued on 25 June 2024³ that BCX has successfully completed the inaugural auction earlier that day.
 
In the media release of 25 June 2024, Bursa Malaysia stated that 15 buyers from various industries purchased a total of 268,800 Hydropower Renewable Energy Certificates from vintage year 2024⁴ (“HRECv24”) Contracts, which were cleared at RM4.50 per contract.
 
The HRECv24 offered by BCX in the auction are RECs generated by Sarawak Energy Berhad from its Murum Hydropower Plant. The RECs auctioned were issued with adherence to the International Attribute Tracking Standard owned by the I-TRACK Foundation (formerly known as I-REC Standard), a non-profit organisation based in the Netherlands that according to the media release, provides a robust standard for developing attribute tracking systems for renewable energy.
 
The 15 successful bidders, of whom 13 are first time successful bidders, were: Looking ahead, the next significant milestone will be BCX’s upcoming auction on 25 July 2024 of Malaysia’s first nature-based carbon credits from the Kuamut Rainforest Conservation Project in Sabah.⁵

 
Slightly further ahead, Datuk Muhamad Umar Swift, the Chief Executive Officer of Bursa Malaysia said that “in the fourth quarter of this year, BCX will be ready to offer RECs via continuous trading, and to facilitate off-market transactions.”
 
Alert by Tham Zhi Jun (Associate) of the Corporate Practice of Skrine.
 
 

---