KUALA LUMPUR (June 25): Bursa Malaysia Bhd's subsidiary, Bursa Carbon Exchange (BCX), has successfully carried out its inaugural auction of hydropower renewable energy certificates for the vintage year 2024 (HRECv24).

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the execution of its inaugural REC auction is the direct outcome of the memorandum of collaboration signed with Sarawak Energy Bhd at COP28 in Dubai at the end of last year.

"The collaboration has quickly yielded meaningful outcomes — raising awareness level on RECs in the country, enhancing access and promoting price discovery in the domestic REC market.

"Next, in the fourth quarter of this year, BCX will be ready to offer RECs via continuous trading, and to facilitate off-market transactions," he said in a statement.

HRECv24 are RECs offered by BCX generated from hydropower plants located in Malaysia with the vintage year of 2024, said the exchange.

The online auction saw 15 buyers from various industries purchasing a total of 268,800 HRECv24 contracts.

Of the 15 buyers, 13 are first-time successful bidders in BCX’s auction.

The RECs for this auction were generated from the Murum Hydroelectric Plant in Sarawak, which is developed and operated by Malaysia’s largest renewable energy provider and developer, Sarawak Energy.

It represents the first large-scale sustainable energy project with an installed capacity of 944 megawatts (MW) and the contracts were cleared at RM4.50 per contract.

According to Muhamad Umar, BCX’s upcoming auction will be held on July 25, 2024 and feature the nation’s first nature-based carbon credits, from the Kuamut Rainforest Conservation Project in Sabah.

"The two projects selected for BCX’s inaugural Malaysian RECs and nature-based carbon credit auctions are of national significance as these large-scaled projects are not easy to implement, and are instrumental in moving the climate agenda," he said.

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