Mongolia’s Coal-Dependent Ger Districts Turn To Solar As URECA Helps Families Replace Nightly Coal Burning With Clean Power And Earn Carbon Credits

In Ulaanbaatar, Mongolia, many families still live in traditional gers, the round felt yurts that have long been central to the country’s nomadic lifestyle. During the winter months, temperatures drop so drastically that families must wake several times each night—around 1 a.m., again at 3 a.m., and once more before dawn—to feed coal into their stoves. This is the only way to keep their homes warm enough to survive. Yet the same coal that protects them from the cold has made Ulaanbaatar one of the most polluted capitals in the world. Each household burns enough coal to release an average of 12 to 13 tonnes of carbon emissions every year.

URECA, a climate technology startup, is working to change this reality. Through its Coal-to-Solar Initiative, the company combines technology with carbon finance to help low-income families transition from coal-based heating to clean solar energy. Their aim is to create climate solutions that are scalable and impactful while also addressing one of the city’s most urgent issues: severe air pollution. URECA’s core idea is to redesign how climate finance works so that it becomes more transparent and accessible to communities. With support from the EBRD’s Star Venture programme, the company has strengthened its ability to scale and refine the technology behind this approach. As co-founder Orchlon explains, they asked themselves why only large renewable projects were able to earn and sell carbon credits.

If these big projects receive additional income because they reduce emissions, then families living in traditional gers and switching from coal to solar should be able to benefit in the same way. However, carbon markets have long faced criticism for being difficult to navigate. Verification processes are slow, expensive, and bureaucratic. Orchlon recalls working on a project that cost nearly US$100,000 and took an entire year to achieve certification under the VERRA standard. For low-income households, such barriers made participation practically impossible.

Nearly one million families live in the ger districts of Ulaanbaatar, where coal remains the primary source of heat during winter. Beyond long-term pollution, burning coal also presents an immediate danger. Improperly lit stoves release carbon monoxide, and every winter, families suffer fatal accidents during the night. When the EBRD first connected with URECA, the startup was building a digital platform that linked small, grassroots carbon-reducing projects with investors. Over time, the founders shifted their focus toward directly supporting households through the Coal-to-Solar project, where they could deliver visible improvements in daily life while also reducing emissions.

After two years of testing, URECA developed an affordable plug-and-play system to help families switch from coal to renewable energy. To keep it cost-effective, they designed both the hardware and software internally. Their system combines simple but reliable devices—solar panels, inverters, batteries, and electric heaters—with URECA’s advanced monitoring technologies. IoT sensors, AI tools, and automated reporting systems track energy use and indoor conditions in real time. These sensors collect data every five minutes to confirm whether any coal is being burned.

Using this verified data, the system automatically calculates emission reductions and converts them into carbon credits. Families can then sell these credits through URECA’s platform, which helps fund their clean energy transition at little to no upfront cost. Because all devices are interconnected, each household essentially becomes a small virtual power plant. Their energy use can adjust in sync with the grid to avoid adding pressure during peak hours while still functioning independently whenever needed. By the end of 2025, nearly 200 households had already adopted URECA’s solution. The company now aims to transition more than 100,000 households by 2030. Achieving this goal would remove an estimated 1.3 million tonnes of carbon dioxide from the atmosphere each year and reduce Ulaanbaatar’s air pollution by over 70 percent.

It would also represent one of the world’s first large-scale energy transitions that fully includes low-income families in extreme climates. Thanks to support from the EBRD’s Star Venture programme and the European Union, URECA has now received Gold Standard certification for its carbon credits. This is one of the most respected standards in the voluntary carbon market and will help the company attract international partners, expand operations, and increase adoption of clean energy technologies.

Convincing families to switch to solar energy was another major hurdle. Many residents simply could not believe that solar-powered systems would keep them warm through winters that reach temperatures of minus 30 degrees Celsius. Amar, one of the team members, explains that giving families the freedom to choose and building trust gradually were essential steps. Once households saw that their homes were safer and that their indoor air quality improved, their confidence grew.

Cost perceptions were also a challenge. As Orchlon notes, families do not burn coal because they want to; they burn it because it is the only affordable option they know. Renewable energy has long been viewed as expensive. URECA approached the issue by focusing on practical benefits—better health, uninterrupted sleep without tending to a stove, and reduced risk of carbon monoxide poisoning. This clear, relatable approach helped families feel more comfortable about making the switch.

The results have been significant. Many households have now gone through multiple winters without burning any coal. Indoor air quality has improved drastically, and families report better health, particularly among children. There has also been a noticeable reduction in seasonal illnesses. Additionally, the shift has improved daily life, as people no longer need to wake up repeatedly at night to add coal to their stoves. Looking ahead, Orchlon believes that large-scale carbon offtake agreements will be key to sustaining and expanding their model. Mongolia’s growing carbon market collaborations, including partnerships with countries like Singapore, are creating new opportunities for governments and businesses to purchase reliable Mongolian carbon credits.

By enabling low-income families to generate and sell carbon credits directly, URECA is opening the door for them to participate in the global clean energy economy. And if families living in traditional felt yurts can rely on solar power to survive some of the harshest winters in the world, it demonstrates an important truth: clean energy transitions are possible anywhere. URECA now plans to scale further into utility-sized renewable projects and larger residential solar developments, showing that community-focused solutions can contribute to global climate progress in powerful ways.