How to Buy I-RECs in Malaysia

Posted : August 13, 2025
Buyers of Environmental Commodities

Companies across the globe have been empowered to reduce their emissions using renewable energy certificates (RECs), such as those supported by the International Renewable Energy Certificates (I-RECs).

Businesses in Malaysia can now take advantage of I-RECs to reduce their Scope 2 Emissions. This is one of the simplest ways to take climate action!

This article looks at how to buy I-RECs in Malaysia.

What Happens When Power is Purchased in Malaysia?

In Malaysia, electricity used by companies is mostly drawn from the national grid, which is managed by different operators depending on the region—primarily Tenaga Nasional Berhad (TNB) in Peninsular Malaysia, Sarawak Energy in Sarawak, and Sabah Electricity in Sabah.

While Malaysia is making strides in renewable energy, particularly solar and large hydro, the grid remains heavily reliant on fossil fuels to meet its growing industrial demand. Approximately 80% of power generation in Malaysia is currently derived from fossil fuel sources, with a heavy reliance on coal and natural gas (2023).

Source: International Energy Agency / Energy Commission of Malaysia

As a result, every MWh that is used by a company results in the emission of greenhouse gases. Nearly 40% of global emissions relate to the generation and use of electricity, and in Malaysia, the emissions from the grid are significant due to the high percentage of coal (approx. 43%) and natural gas (approx. 37%) in the mix.

These emissions are termed Scope 2 emissions. Reducing Scope 2 emissions has become a global priority, and many companies have committed to achieving Near Term Targets of renewable energy use by 2025 or 2030.

Companies cannot choose to exclusively use renewable energy from the Malaysian national grid (unless subscribing to specific bundled tariffs like GET, which have limited quotas). Generally, the electricity they consume will be a mix of all generated power, including non-renewable sources.

I-RECs solve this problem.

What are I-RECs?

The I-REC Standard is a global system for tracking the environmental attributes of electricity generated from renewable sources. The tracking is achieved by the use of verified, traceable certificates known as I-RECs.

I-RECs monitor the journey of renewable energy from its generation at a power plant to its consumption by the end user. The system for I-RECs operates much like the Guarantees of Origin (GOs) in Europe and Renewable Energy Certificates (RECs) in the United States. While GOs and RECs track energy in their markets, I-RECs offer this capability in many other countries, including Malaysia.

How do I-RECs Work?

I-RECs are created for each MWh of renewable energy produced by power plants registered on the I-REC Standard. Businesses can then purchase these I-RECs to ensure that no greenhouse gas has been released in the generation of the electricity they’ve used.

The revenue generated supports the development of new renewable energy projects (such as solar, biomass, and hydro), encouraging further reduction of greenhouse gas emissions and benefiting end-consumers.

How do Malaysian Companies Benefit from Using I-RECs?

I-RECs are a practical tool used by companies to meet their sustainability goals in relation to emissions reduction. Some of the key benefits for businesses using I-RECs include:

Reducing an organisation’s carbon footprint (Scope 2 emissions) with an established, accepted, and cost-effective initiative.
Enabling companies to choose renewable energy despite the fossil-fuel dominance of the national grid.
Achieving sustainability goals in compliance with different environmental company standards, such as Greenhouse Gas Protocols, RE100, SBTi, the Net-Zero Standard, CDP, and others.
Improving public image, showcasing a commitment to combating climate change to local stakeholders and international supply chain partners.

How to Start Using I-RECs in Malaysia

It’s easy for a company in Malaysia to start using I-RECs.

Simply calculate your company’s electricity consumption in MWh and purchase an equivalent number of RECs.

Monsoon Carbon can then retire these certificates, with your company’s details attached.

Though using I-RECs to reduce your carbon emissions is not complex, there are rigorous rules applied to their use that your company should be aware of. These rules determine whether your I-RECs are eligible for counting towards reducing your carbon footprint. Monsoon Carbon can help you to navigate these rules to ensure your claims are valid.

How to Buy I-RECs in Malaysia

Monsoon Carbon is a trusted leader providing verified I-RECs in the Southeast Asian region. We supply solar, wind, and hydro I-RECs sourced from accredited renewable energy power plants on spot or forward orders.