Developments with the Malaysian mRECs market
In July 2021, Maybank, one of Malaysia’s largest banks announced their five-year sustainability goals (M25 plan) that underlined the bank’s goals for Carbon Neutrality for Scope 1 and 2 emissions by 2030 (Net Zero Carbon Equivalent by 2050). And on the 7th of October 2021, Maybank signed with Tenaga Nasional Bhd’s subsidiary TNBX Sdn Bhd a letter of intent to purchase Malaysia Renewable Energy Certificates (mRECs) to decrease their Malaysian operations’ Scope 2 emissions. mRECs are registered with the I-REC Standard Foundation and recognized as Malaysian I-REC for electricity (I-REC(E)) certificates.
The purchase agreement of mRECs, which is intended to begin January 2022 and extend for an initial period of five years, would allow Maybank to decrease their Malaysian operations’ Scope 2 emissions by roughly 70% each year for all their Malaysian operations.
Abdul Farid, the CEO of Maybank, has been quoted in the article by the Edge Markets, “Maybank on track for banking sustainability milestone with purchase of mRECs,” explaining how the agreement of purchasing mRECs provides Maybank the tangible opportunity of reaching their long-term sustainability commitments (carbon neutrality for Scope 1 and 2 emissions) by 2030 and that the purchase will go towards furthering renewable energy production developments, “We are also supporting the overall ecosystem as the proceeds from the intended purchase of the mRECs will be used to construct more renewable energy plants and thus encourage the further development of such energy sources in the country.”
The International REC Standard Foundation is pleased to see such a development in the Malaysian mRECs market and applauds all parties involved in taking the necessary steps towards carbon neutrality and the use of renewable resources.