RECDeFi is an automated, decentralized, and scalable marketplace that accelerates investment in clean energy and climate solutions by making it faster, cheaper, and easier to trade renewable energy credits, carbon offsets, and other environmental commodities.

650,000x

less energy per transaction than Ethereum

$0.001 USD

transaction fee to transfer digital REC

$1 USD

transaction fee to tokenize digital REC

“Hedera’s market-leading trust and fairness combined with its enterprise-grade scalability allow RECDeFi to efficiently serve both voluntary and compliance markets for renewable energy credits, carbon offsets, and other environmental commodities."

Steve Frenkel

Co-Founder, RECDeFi

Industry

Sustainability

Use Case

Asset Tokenization & Data Integrity

Overview

RECDeFi is an automated, decentralized, and scalable marketplace that accelerates investment in clean energy and climate solutions by making it faster, cheaper, and easier to trade renewable energy credits, carbon offsets, and other environmental commodities.

Challenge

Renewable Energy Credits (RECs) are the common currency of clean energy, but today’s REC markets are fragmented, inefficient, and expensive. From high transaction fees due to intermediation and manual processes to a lack of granularity and cumbersome verification methods, RECDeFi seeks to solve the challenges faced in today’s REC markets using an environmentally friendly public distributed ledger.

Solution

RECDeFi chose Hedera Hashgraph as their distributed ledger of choice to enhance the REC trading experience and overcome inefficiencies in today’s marketplaces. Hedera delivers low, predictable fees for the minting and transfer of tokenized RECs and carbon offsets, fast transactions for verifiable data logging, and a significantly reduced carbon footprint when compared to alternatives like Ethereum.

RECDeFi, built on Hedera Hashgraph, is a 21st-century solution that automates renewable energy credit transactions end-to-end. RECDeFi accelerates investment in clean energy and climate solutions by making it faster, cheaper, and easier to trade renewable energy credits (RECs), carbon offsets, and other environmental commodities. RECDeFi provides time-stamped hourly asset-linked digital renewable energy credits that enable buyers to match electricity consumption with renewable energy generation on a 24/7 basis to reduce carbon emissions associated with energy use.

Trusted and traceable provenance and attributes to inform token creation

RECs are the common currency of clean energy, but today’s REC markets are fragmented, inefficient, and expensive. Today’s RECs lack the granularity needed to meet the requirements of today’s buyers — today’s RECs are typically transacted monthly or annually and are not readily matched to end-user energy use.


Using Hedera Hashgraph, RECDeFi issues time-stamped hourly asset-linked digital renewable energy credits (dRECs) based on trusted and traceable provenance and unique asset attributes, often called ‘measurable, reportable, and verifiable (MRV)’ data. These attributes include resource type, geography, time of generation, avoided carbon emissions based on grid carbon intensity, and more. The Hedera Consensus Service and RECDeFi’s Validator Network act as a real-time data logging and publicly verifiable engine on the Hedera public ledger, enabling superior trust and transparency when it comes to how, when, and where a specific dREC was issued.


Time-stamped hourly asset-linked dRECs can be bought, traded, and retired all seamlessly on RECDeFi’s marketplace. By automating the entire transaction from end-to-end RECDeFi provides full lifecycle traceability to validate the provenance of every dREC, ensuring that no dREC is ever double-counted.



“Hedera’s market-leading trust and fairness combined with its enterprise-grade scalability allow RECDeFi to efficiently serve both voluntary and compliance markets for renewable energy credits, carbon offsets, and other environmental commodities,’” said RECDeFi Co-Founder Steve Frenkel. “Hedera’s high speed and low, predictable transaction costs enable RECDeFi to create a transparent and verifiable transactional record to satisfy the granularity requirements of every stakeholder on our platform — both Hedera’s economic and ecological friendliness is unmatched.”

Features and benefits of the RECDeFi marketplace

Key steps in automated dREC tokenization on Hedera:

  1. Renewable energy project registers with RECDeFi.

  2. Project submits generation event as Measurable, Verifiable, and Reportable (MRV) data to Hedera Consensus Service (HCS).

  3. HCS relays MRV data to RECDeFi’s Validator Network for validation and dREC token minting.

  4. RECDeFi’s Validator Network validates trust chain (generation events, Decentralized IDs, and Verifiable Credentials of asset owner, installer, and inverter) and mints 1 dREC token for every megawatt-hour of renewable energy produced.

  5. Hedera Token Service (HTS) deposits dREC tokens into project owner’s RECDeFi account and places dRECs onto the marketplace.

  6. Buyers can buy, trade, and retire hourly asset-linked dRECs with the ability to verify the entire dREC lifecycle.

Tokenizing dRECs on Hedera for scalability, speed, and cost savings

RECs are a tradable commodity with robust demand in secondary markets, but they’re typically serviced by traditional brokers who rely on inefficient and often manual tracking and transactional practices. When it comes to REC trading, a large portion of REC value is lost to transaction fees — up to double-digit percentages. And time-intensive, antiquated purchasing of RECs destroys efficiency.


Using the Hedera Token Service (HTS), RECDeFi ensures immutable and verifiable proof of dREC creation, ownership, and retirement to overcome the challenges of today’s opaque marketplaces. In addition, dRECs issued on Hedera assume the attributes of high performance, low, predictable fees, and energy efficiency — it costs less than $1 USD (paid in HBAR) to issue a tokenized dREC and $0.001 USD for transfers, enabling a scalable, enterprise-grade marketplace that eliminates expensive and slow REC brokering. Hedera ensures real-time settlement when transferring dRECs between accounts and offers 10,000 transactions per second of throughput, meeting the needs of an enterprise-scale marketplace.

Built on the most ecologically friendly public network

RECDeFi is a founding member of the Crypto Climate Accord and seeks to enable all of the world’s blockchains to be powered by 100% renewables by 2025. Hedera’s energy efficiency is core to the platform’s scalability and sustainability.


Hedera is significantly more energy-efficient than alternative public networks, such as Ethereum or Bitcoin. For example, a single transaction on Hedera consumes an average of 0.0001 kWh — more than 605k times less energy per transaction than Ethereum. Built on the sustainable Hedera network allows RECDeFi to quell the environmental concerns of users interested in participating in a decentralized environmental commodities marketplace.

view all users

Hedera is not affiliated with, and does not sponsor or endorse this project.

Industry

Sustainability

Use Case

Asset Tokenization & Data Integrity

Overview

RECDeFi is an automated, decentralized, and scalable marketplace that accelerates investment in clean energy and climate solutions by making it faster, cheaper, and easier to trade renewable energy credits, carbon offsets, and other environmental commodities.

Challenge

Renewable Energy Credits (RECs) are the common currency of clean energy, but today’s REC markets are fragmented, inefficient, and expensive. From high transaction fees due to intermediation and manual processes to a lack of granularity and cumbersome verification methods, RECDeFi seeks to solve the challenges faced in today’s REC markets using an environmentally friendly public distributed ledger.

Solution

RECDeFi chose Hedera Hashgraph as their distributed ledger of choice to enhance the REC trading experience and overcome inefficiencies in today’s marketplaces. Hedera delivers low, predictable fees for the minting and transfer of tokenized RECs and carbon offsets, fast transactions for verifiable data logging, and a significantly reduced carbon footprint when compared to alternatives like Ethereum.

BUILD THE FUTURE TOGETHER

Submit your application for a chance to be listed or learn how Hedera can decentralize your application