CAP Financial Innovation Challenge

A digital platform to bundle debt and results-based payments with climate finance

Financial aggregation solution by 4R Digital

The solution

Through its Carbon Value Exchange platform Cavex, 4R Digital will connect micro-small clean energy products with the Voluntary Carbon Markets – enabling the aggregation of hundreds of thousands of clean energy device users. 4R Digital will explore how to layer additional product financing opportunities on top of the carbon-related payments.  

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?


Potential impact

Cavex’s current projections over the first 5 years it will connect and provide $114 million in climate financing for micro-small clean energy projects and participants. They estimate that a minimum of 10% of the connected device users require access to debt financing or result-based payments, providing a target of approximately 500,000 end-users. 

About 4R Digital

4R Digital is a B2B digital solutions provider bringing innovative and disruptive solutions to market, registered in the United Kingdom. 4R Digital’s founders have extensive experience in developing innovative digital finance platforms having led the development of M-PESA and Co-Founded and grown M-KOPA. 


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