4R Digital proposes to layer additional product financing opportunities on top of the carbon-related payments. Cavex already tracks individual user accounts and records the activity of individual devices – converting activity to a carbon credit value. This project will explore how to extend the use of these functionalities to approve loans and payments to eligible participants and to implement payments through the system.

The platform will accept data from devices such as solar water pumps, electric motorbike and electric cookers. The validation to ISO14060 family standards will be undertaken on the platform itself and then using digital payments, including mobile money, the proceeds of carbon credit sales can be returned to community or individual wallets.

There is interest from financial institutions in using the CaVEx platform as a means of identifying and lending, at preferential rates, to projects selling clean energy assets to low-income customers. 

4R Digital will explore the methodology to enable additional financing to be offered to project participants by bank and non-bank financial institutions and other development finance institutions. These may be offered in the form of affordable credit from commercial lenders and results-based payments from development finance institutions.

How does it work?