URECA introduced on Monday a proprietary technology and platform that is set to democratise access to carbon credits globally. Starting with renewable energy (RE), URECA’s proprietary end-to-end blockchain-based verification system allows virtually anyone currently participating in the RE market to join – from the homeowner with a rooftop solar panel to a company owning a large wind farm.
The technology, consisting of three components – a tamper-proof smart-meter, deep learning based artificial intelligence verification system and a blockchain-based trading platform, was designed and built in-house in collaboration with the Mongolian University of Science and Technology. The three components have been successfully tested through a pilot conducted at the end of last year. The blockchain trading platform is powered by Algorand, which has extensive experience building sustainable long-lasting blockchain technology, networks and partnerships, protecting investors while ensuring environmental integrity and real-world solutions for their users.
According to Orchlon Enkhtsetseg, Founder and CEO of URECA, “Today, it is extremely difficult for small renewable producers to participate in the carbon credit market due to the design of the current carbon offsetting framework. If we want to scale sustainability fast and address the mounting environmental challenges, we need to allow virtually everyone to participate, particularly people from developing nations who will be the most impacted by climate change.”
For Matt Keller, Director of Impact and Inclusion at the Algorand Foundation, “This touches on two key areas we are focused on at Algorand: Environmental sustainability and social impact. Broadening access to credits allows citizens to participate regardless of who they are or where they might be, and by doing so, URECA becomes part of the movement that is building a more sustainable and prosperous world.”
The technology is starting to be rolled out in Mongolia in partnership with The Asia Foundation, a non-profit international development organization.
Mark Koenig, The Asia Foundation’s country representative in Mongolia said, “We are extremely excited about the potential of this technology and the concept of using carbon credits to encourage local families to transition to renewable energy, reduce air pollution, but also generate additional income and reduce energy costs. The partnership with URECA will offer opportunities to incentivise and expand a range of potential sustainability initiatives, by creating financial incentives to help actors do the right thing for the environment. We are starting with families in Mongolia, particularly herders and ger district residents in Ulaanbaatar, but with the lessons learned we hope to increase the reach in Mongolia, and eventually see this technology applied to support the decarbonisation efforts of communities in additional Asian countries.”
Aside from facilitating access to carbon credits, URECA is also focusing on launching a tailored carbon offsetting service that combines carbon credits from common citizen producers as well as commercial renewable producers. “We want to partner with the right companies. Organisations that are truly making an effort to address their carbon footprints and not using carbon credits as an easy way out”, said Orchlon Enkhtsetseg, Founder and CEO of URECA.
Moving forward URECA plans to expand the reach of the technology beyond renewables, into other high-quality carbon offset projects. The company is already working on electricity and heat efficiency projects and is exploring moving into nature-based solutions. URECA will use a combination of technology and fieldwork to ensure that the verified credits are of high quality and meet the most stringent additionality and permanence requirements.
URECA will be establishing its headquarters in Singapore in H2 2022 and is focusing on expanding its operations across Asia in the upcoming months.