Bursa Carbon Exchange (“BCX”) announced a memorandum of collaboration (“MoC”) with Sarawak Energy Berhad (“Sarawak Energy”) at the 3rd Malaysia Carbon Market Forum (“MCMF 2025”) today, reinforcing efforts to accelerate the development of Malaysia’s renewable energy ecosystem.
The two-year MoC encompasses BCX working with Sarawak Energy to develop action plans and leverage on BCX’s service to promote and market Renewable Energy Certificates (“RECs”) generated from Sarawak Energy’s hydroelectric plants.
This collaboration will support Sarawak Energy in enhancing operational efficiency and in advancing its aspiration to expand the reach of its hydropower RECs across Malaysia. It also reinforces the role of both Sarawak Energy and BCX in driving national sustainability efforts, and highlights the strategic importance of hydropower RECs in helping Malaysia meet its environmental and climate-related goals.
The exchange of the MoC at MCMF 2025 between Dato’ Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia and Hajah Siti Aisah Adenan, Senior Vice President of Corporate Services, Sarawak Energy was witnessed by YB Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities and Acting Minister of Natural Resources and Environmental Sustainability.
This marks the second strategic collaboration between BCX and Sarawak Energy, after the first MoC that was signed at COP28 in Dubai in 2023 together with the Hydropower Sustainability Alliance and the I-REC Standard Foundation.
The scope of the MoC will cover the following areas:
- To develop the workplan and requirements for the auctions and implement milestones towards the operationalisation of the auctions;
- EC price discovery exercise to assess potential premium arising from Hydropower Sustainability Standard (“HSS”) sustainability certification for Sarawak Energy hydroelectric plant; and
- Conduct joint awareness and knowledge building programmes to create awareness on sustainability certification such as HSS, credible renewable energy consumption claim, cross border RECs trading, and international attribute tracking standards for RECs.
Dato’ Fad’l commented, “Bursa Malaysia is pleased to continue our collaboration with Sarawak Energy in developing the renewable energy ecosystem. Through this second MoC, both parties will work closely towards leveraging BCX’s Auction-as-a-Service (“AaaS”) to market Sarawak hydropower RECs and facilitate price discovery, particularly for Sarawak Energy’s HSS-certified asset. We are honoured to extend BCX’s auction service to Sarawak Energy, enabling corporates in Malaysia and the region to procure hydropower RECs in support of their Scope 2 emissions reduction. We believe the AaaS model can play a catalytic role in supporting the national energy transition — offering renewable energy and carbon project developers an efficient platform to secure longterm offtakers vital for supporting financing of their greenfield projects”.
Hajah Siti Aisah said, “Hydropower remains the backbone of Sarawak’s renewable energy mix and a proven enabler of Malaysia’s low-carbon transition. Recognised globally as the most viable renewable energy source for sustainable economic development, Sarawak continues to advance hydropower development in line with the principles of the HSS and through continuous efforts towards certification of all its hydropower assets. This commitment was exemplified through the first MoC with Bursa Malaysia, which marked the acceptance of hydropower as a sustainable energy source. Building on this collaboration, we are expanding the value of hydropower beyond electricity generation by creating verified renewable energy instruments that support corporate sustainability goals.”
She added that the introduction of hydropower RECs provides greater transparency and accessibility for corporates seeking credible renewable energy sources, while reinforcing Sarawak Energy’s commitment to responsible and sustainable hydropower development.
