The Natural Resources and Environment Board (NREB) and Bursa Carbon Exchange (BCX), a wholly-owned subsidiary of Bursa Malaysia Berhad, have on Wednesday formalized a memorandum of collaboration (MoC) to jointly explore the development of the Sarawak Carbon Registry.

The duo said in a statement that the collaboration marks a significant step in Sarawak’s journey to establish a robust carbon management framework and promote sustainable development.

Under the two year collaboration, both parties will review the purposes and understand the objectives of the Sarawak Carbon Registry; organize capacity building programs and technical meetings with relevant experts; explore potential high-level design of the Sarawak Carbon Registry; and develop a structured action plan for implementation.

The Sarawak Carbon Registry will be developed in line with the Environment (Reduction of Greenhouse Gases Emission) Ordinance, 2023, which empowers NREB to regulate greenhouse gas emissions and encourage low-carbon strategies across sectors.

In his speech, Datu Jack anak Liam, Controller of Environmental Quality, Sarawak, highlighted the importance of the initiative as part of Sarawak’s broader sustainability goals.

“Recognizing the urgency of climate change, Sarawak took a bold step with the enactment of the Environment (Reduction of Greenhouse Gases Emission) Ordinance, 2023,

“This landmark Ordinance empowers NREB to regulate greenhouse gas emissions, encourage industries to adopt low-carbon strategies, and accelerate the State’s transition towards clean and renewable energy,” he said.

He also said this collaboration supports their mandate under the Ordinance, which tasks NREB to develop and administer the Sarawak Carbon Registry.

“By partnering with Bursa Carbon Exchange, given their vast experience with international carbon registries, Sarawak will be well-positioned to establish a credible and transparent carbon market ecosystem,” he added.

Meanwhile, Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia, said the exchange launched BCX almost three years ago as the world’s first Shariah-compliant carbon exchange.

“Today, BCX has expanded into a multi-environmental product exchange, offering both carbon credits and renewable energy certificates (RECs),

“With the expertise that BCX has built in operating the voluntary carbon market and working with international registries of carbon credits and RECs, Bursa Malaysia is well positioned to help Sarawak to leverage its natural assets and innovation capacity to generate high quality carbon credits and unlock new economic value,” he said.

He added that Bursa Malaysia continues to be at the forefront of advancing Malaysia’s sustainability journey, through various market development efforts and engagement with policymakers.

“This collaboration with NREB further demonstrates our commitment to supporting Sarawak’s climate ambitions by enhancing capacity-building and developing a robust carbon market ecosystem,” he said.

Bursa Carbon Exchange now offers continuous trading for Renewable Energy Certificates