YTL pioneers water reuse credits

(by Karma Loveday)

Treated wastewater will be converted into tokenised credits that businesses can purchase to offset their water usage and support water resource sustainability, under a pioneering initiative from Wessex Water parent the YTL Group.

YTL Enterprises (YTLE), the commercial innovation arm of YTL Construction UK, has partnered with Swiss technology company Hypercube to issue the UK’s first blockchain-verified water reuse credit using WTR, Hypercube’s water credit standard.

Under the scheme, every 1m³ of treated wastewater from Wessex’s Avonmouth water recycling centre in Bristol will be recognised as a digital water credit. These credits can be used by organisations seeking credible, measurable, and transparent solutions to address challenging water impacts.

A portion of every credit sold will then be reinvested into local water resource projects – supporting initiatives such as wetland restoration, river health programmes and community water resilience projects. YTLE said this will ensure that each credit not only represents reduced freshwater abstraction but also creates real, local, additional, long-term environmental value for the Bristol region and beyond.

The Hypercube model has drawn lessons from both voluntary carbon markets and mandatory compliance schemes. While carbon markets aim to record environmental benefit, they have been challenged by inconsistent verification, complex registries, and risks of double counting. YTLE said Hypercube’s solution addresses these challenges by offering blockchain-backed certainty that provides strong assurance for credit purchasers, using precision over estimation, immutable verification and transparent lifecycle tracking.

Richard McCluskey, head of commercial and customer at YTLE, said: “Every litre of water we reuse reduces pressure on the natural environment. By turning this into a verified, transparent credit, we can demonstrate our impact with integrity, support businesses on their sustainability journey, and reinvest in the health of our water environment.”

YTLE said the partnership forms part of its broader ambition to pioneer new solutions that protect resources, strengthen environmental resilience and support the transition to a low-carbon, circular economy.