Bursa Carbon Exchange commences Off-Market Carbon Credits Trading; intends to offer Renewable Energy Certificates by Q3 of 2024

Bursa Malaysia Berhad (“Bursa Malaysia”) issued a media release on 26 September 2023 announcing that its subsidiary, Bursa Carbon Exchange (“BCX”), the world’s first Shariah compliant voluntary carbon market, commenced trading and facilitation of off-market transactions of carbon credits on 25 September 2023.
 
According to Bursa Malaysia, a total of 16,500 Verra-registered carbon credits had been transacted by ten companies on BCX by the close of its second day of trading.

The media release also stated that two standardised contracts were offered for trading - the Global Technology-Based Carbon Contract (GTC), which focuses on global technology-based greenhouse gas (“GHG”) reduction projects, and the Global Nature-Based Plus Carbon Contract (GNC+), which features global nature-based GHG reduction projects with co-benefits in the Agriculture, Forestry and Other Land Use (AFOLU) sector.
 
In response to increasing requests from corporates seeking an independent and cost effective platform for renewable energy certificates (“RECs”) transactions, Bursa Malaysia also announced its intention to offer RECs on BCX by the third quarter of 2024.
 
Bursa Malaysia’s media release of 26 September 2023 can be accessed here.
 
Alert by Tham Zhi Jun (Associate) of the Corporate Practice of Skrine.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.