First time event: I-REC(E) in Mongolia

Mongolia, known for its heavy reliance on coal, is increasingly inclined to transition towards renewable energy. As of 2023, renewable sources account for 8.1% of Mongolia's total energy production, showcasing the country's untapped potential in wind, geothermal, hydro, and solar energy, estimated at approximately 2,500 GW.

To accelerate the transition towards sustainable solutions and promote the adoption of renewable energy practices, the OLOLT Climate Change and Carbon Market Development Center (OLOLT Center) has taken the initiative to introduce the I-REC(E) standard. By becoming an accredited Local Issuer of renewable energy certificates, the OLOLT Center facilitates the validation of the renewable origin of electricity. Provided by the I-TRACK Foundation and embraced by over 60 countries worldwide, the I-REC(E) standard ensures credibility and sustainability in the energy sector. This marks a significant milestone as it represents the first market mechanism dedicated to incentivizing and supporting renewable energy producers in Mongolia. This new endeavour not only enables national renewable energy producers to access international REC markets but also provides organisations with the opportunity to offset their carbon footprint by purchasing internationally accepted RECs. Thus, aligning business practices with sustainability goals.

On March 20, 2024, the OLOLT Center, in collaboration with the I-TRACK Foundation, hosted a landmark online event marking the introduction of I-REC(E) in Mongolia. This kick-off event attracted over 150 attendees from various sectors, including government bodies, private sector representatives, energy producers, and development partners. The primary objective was to unveil and demonstrate the renewable energy verification and certification mechanism provided by the I-TRACK Foundation. Beyond just information-sharing, the event was a platform to foster collaboration among stakeholders united in our mission to promote sustainable energy practices across Mongolia. Inspiringly, local and international experts in the renewable energy sector shared their insights on leveraging the IREC mechanism for broader impact beyond the renewable energy market.

Keynote speakers:

Ms. Chuluunkhuu Baatar, Co-Founder of OLOLT Center

Topic: I-REC (E) in Mongolia

Mr. Osgonbaatar Jambaljamts, President of Mongolian Renewable Energy Industry Association (MRIA)

Topic: Mongolian renewable energy sector

Mr. Oleg Dobrovolsky, Regional Director, I-TRACK Foundation

Topic: Introduction to the I-TRACK Foundation: Global REC Systems, Markets, and Leveraging RECs for Organisational Advantages in Mongolia

Mr. Alan Bokayev, Chief Specialist, ECOJER Association

Topic: I-REC (E) in Kazakhstan

Ms. Chuluunkhuu stated, "The introduction of the IREC(E) mechanism in Mongolia empowers domestic renewable energy producers to participate in the international certification system, enabling access to additional financial benefits. On the other hand, it enables organizations to meet sustainability targets and support the growth of clean energy, and offset GHG emissions through a mechanism accepted by international standards.”

Mr. Osgonbaatar Jambaljamts stated, “We invite the government, private sector, and development organizations to strengthen their partnership in fostering the development of decentralized renewable energy solutions at both household and organizational levels in Mongolia. This approach is crucial not only for reducing greenhouse gas emissions but also for combating air pollution and enhancing living conditions. Leveraging mechanisms like I-REC holds paramount importance in transitioning to renewable energy sources, and we are grateful for its introduction in Mongolia."

Mr. Oleg Dobrovolsky highlighted, “The I-REC(E) mechanism has already been adopted by over 60 countries and is acknowledged as an effective instrument for offsetting Scope 2 emissions and achieving renewable energy goals. Members of the 'RE100' global climate group, such as major corporations like Google and Apple, procure I-RECs in alignment with their sustainability objectives. With each renewable energy production meticulously measured and certified according to the I-REC standard, it proves to be a potent mechanism in driving real transformation within the energy industry.”

Mr. Alan Bokaev stated, “Since its inception in 2022, the I-REC market in Kazakhstan has shown significant expansion, with a notable 44% growth in renewable energy certificates issued last year, surpassing 200,000 MW in 2023. The private sector is actively engaging in the market, voluntarily acquiring these certificates to diminish their environmental impact and fulfil their ESG targets and policies.”

The event was further enriched by the participation of international experts; Mr. Eessa Mansoor, Project Development Manager, Evident Registry (the Global Registry for I-REC) and Ms. Diana Sukor, Environmental Certificates Originator, STX Group (one of the leading environmental commodity traders). Their valuable insights into renewable energy certificate systems and market dynamics enriched attendees' understanding of renewable energy verification and certification mechanisms.

With the successful adoption of IREC(E) issuance in Mongolia, renewable energy producers can now apply to issue IREC(E) for their energy production with support from the OLOLT Center. This opens up additional financing opportunities for them, paving the way for sustainable growth and development in the renewable energy sector.