Connecting global climate financing with micro clean energy and forestry initiatives

Overview

Connecting global climate financing with micro-clean energy and forestry initiatives

Sector

Climate Finance

Platform Service

Carbon Value Exchange

Location

Sub Saharan Africa

Partners

Nature-based projects

Connecting global climate financing with micro-clean energy and forestry initiatives

Digital connectivity and payment systems means that its now possible to directly connect and provide financing to micro-initiatives in the Global South that displace carbon emissions, or sequester carbon. 4R Digital is working with a number of these micro-initiatives to connect them to climate financing schemes to increase the viability and sustainability of their operations. Previously, this process has involved significant time and resources to develop projects and validate their carbon related activities. This has reduced the speed and volume of the much needed finance reaching these micro-initiatives. 

Community members replanting land in Kenya

Climate financing processes have been burdensome and expensive

Many businesses and governments have made commitments to achieving net-zero (or net-negative) carbon emissions. For businesses this means reducing their own emissions, but also buy trading carbon “credits” with projects that have: offset carbon emissions (for example buy replacing carbon fuels with clan energy use), or that have “sequestered” carbon through the planning and/or maintenance of trees. 

The process of developing and registering a project to access climate financing has been time consuming and very expensive – creating a barrier that prevents micro-initiatives form entering (and benefitting from) the available financing. This has also reduced the supply of projects available to climate financing businesses, leaving them able to only finance large scale infrastructure projects such as wind-farms or hydro-power systems.

Digital technology and payments systems provides and efficient and affordable solution

4R Digital is making use of the availability of smart sensors, connected appliances (the IoT) and associated data collection tools allow us to track, monitor and verify many small (nano) clean energy activities across Africa and Asia in a way that has not been possible until recently. Digital finance now allows us to design and deliver structured financial incentives, again at a hyperlocal / nano scale and using a range of potential financial products (to wallets or other forms of distributed e-value accounts).

4RD is developing a two-sided, cloud based platform where companies that who have climate action commitments can help incentivize large numbers of small / micro clean-energy initiatives across the global south. Digital technology now allows secure, verifiable end-to-end solutions to capture and record climate activity happening on the ground. 4RD is designing digital finance solutions to incentive and reward clean energy activity, and target these solutions to improve the financial health of families, small businesses and communities on the ground.

Achieving carbon emission targets requires the involvement of micro-initiatives in the Global South

4R Digital’s platform will demonstrate that it is possible to connect Global South micro-initiatives to global climate financing markets efficiently, and cost effectively. This can have the impact of enabling many $millions of transactions to support initiatives where the finance is badly needed.

For further information and to discuss opportunities contact:
The Fourth Revolution is Digital
:
The Fourth Revolution is Digital
:
The Fourth Revolution is Digital
:
The Fourth Revolution is Digital
:
The Fourth Revolution is Digital
:
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