MicroEnergy Credits – Microfinance for Solar Lamps & Efficient Cookstoves
Grouped Project under Verra
In line with our commitment to transparency and integrity, we are providing a comprehensive list of all the information about our Africa clean energy program here.
This initiative aims to ensure that stakeholders have access to program details and documentation in an easy-to-use way.
In the rural areas in Kenya, the predominant means of cooking are traditional cookstoves that use charcoal or wood as fuel. The smoke and fumes from these inefficient stoves contribute heavily to indoor air pollution, and affect human health. In rural areas of Kenya there is either no grid connection or frequent power outages and low voltage so rural households must use kerosene for indoor lighting, which also contributes to indoor air pollution.
Under the project activity, MEC works with project partners to develop a successful and diversified clean energy-lending program. The clean energy program addresses typical barriers for low-income clients including education, price, finance, and supply and aftersales service. MEC trains project partners to implement the clean energy lending program, as well as a robust and transparent carbon credit monitoring and tracking system to quantify and record the volume of carbon emission reductions created through the clean energy program.
Fostering Community Empowerment - Paving the Way Towards a Sustainable Future
MicroEnergy Credits (MEC) programs, backed by carbon finance, play a crucial role in bridging the gap between clean energy solutions and communities in need. Employing a holistic approach, MEC addresses challenges encompassing energy drudgery, awareness, pricing, finance, and after-sales services, ensuring a sustained impact on the communities it serves.
The comprehensive strategy of MEC's Africa programs makes a substantial contribution to community development. By significantly reducing indoor air pollution and providing access to sustainable energy for cooking and lighting, the program addresses the fundamental needs of low-income households. Strategic partnerships with microfinance institutions facilitate upfront credit facilities for clean energy technologies, ensuring affordability through manageable EMIs. Furthermore, the program creates employment opportunities for local youth, fostering sustainable development in the communities it serves.
Contributing to Sustainable Development Goals while addressing barriers for low-income clients under MEC Projects in Africa
Within the dynamic landscape of its projects in Africa, MEC not only strives to contribute to the broader canvas of Sustainable Development Goals (SDGs) but also successfully addresses the unique challenges faced by low-income households. This multipronged model forms the crux of MEC's mission in Africa.
MEC is committed to not only providing clean energy solutions and clean water (significantly contributing to SDGs 6 & 7) but also actively addressing the barriers faced by low-income clients. Comprehensive training programs empower MEC’s project partners to effectively implement clean energy lending, supported by a robust carbon credit monitoring system for transparency and accountability. These innovative strategies and multifaceted approaches employed by MEC’s projects in Africa have been striving to achieve the twin objectives of sustainable development and inclusivity in the African context since 2013, impacting 8 million low-income households.
MEC strategically employs carbon finance to drive sustainable change, focusing on:
Increasing awareness among end-users
Carbon finance is allocated to drive education and awareness campaigns among rural and low-income communities. This ensures that communities are not only aware of the benefits of clean energy but also actively engage in adopting solutions that help them shift away from traditional fossil fuels to improved clean energy technologies. This action aligns the end user’s perspective towards the low carbon technology and contributes to SDG-7(Affordable and Clean Energy) and 13 (Climate Action).
Training and capacity building
MEC dedicates resources to training and capacity-building programs for micro-entrepreneurs and staff members of microfinance institutions (MFIs). Each training program developed by MEC is tailored to the specific needs of partner organizations. These programs aim to improve skills, facilitate effective communication with end-users, and ensure the rigorous use of technology, along with prompt after-sales services, and scaling-up of the program in the long run. This action aligns the end user’s perspective towards the low carbon technology and contributes to SDG-7 (Affordable and Clean Energy), 13 (Climate Action), SDG-8 (Decent Work and Economic Growth)
Lending funds to local SMEs
MEC recognizes the importance of local businesses, especially Small and Medium Enterprises (SMEs), and channels funds to support sales of clean energy products. This not only boosts local economies but also creates a self-sustaining cycle of clean energy adoption. The activities under the program provide opportunities for skilled employment in rural areas and significantly contribute to SDG-8 (Decent Work and Economic Growth).
Aftersales service and maintenance
Carbon finance is utilized to provide after-sales service and maintenance, ensuring that the end-users can maximize the benefits from the continuous use of clean energy products. This solidifies the community’s trust and commitment towards the adoption and consistent use of clean energy technologies which significantly contributes to SDG-7 and SDG-13.
Sustained engagement with end-users
MEC maintains a sustained relationship with the end-user, with regular monitoring of product usage being an important part of MEC’s carbon program. MEC works with microfinance institutions which typically meet with clients every week or fortnight. These meetings serve the purpose of reinforcing the behavioural change needed for the sustained efficient adoption of the clean energy product. Moreover, these meetings create a timely opportunity for users to access after-sales service for their products. The action promptly contributes to SDG-7 and SDG-13.
Lowering interest or principal costs
Carbon finance is strategically used to lower interest or principal costs for clients, making clean energy solutions more affordable to low-income communities. This lowering of the upfront cost is supported through carbon finance promotes widespread adoption and significantly contributes to SDG-1.
Harmony between MEC projects in Africa and the Governments of Kenya and Uganda’s welfare schemes and programs
In addition to aligning with the SDGs, MEC's Africa program has broadened its influence by supporting various schemes and social security programs initiated by the Governments of Kenya and Uganda. The following is a list of schemes and programs to which the MEC program has contributed:
Sl. No
Scheme/Program Name
Country
About
Contribution of MEC’s Program to the Schemes/Program
The project is targeted at benefitting approximately 314,200 non-commercial customers (households) resulting in electricity access to an additional 1.5 million Kenyans
By implementing solar home lighting systems, MEC ensures sustainable access to electricity, enabling low-income households to engage in productive activities after nightfall
The National Climate Change Action Plan (NCCAP), 2018-2022, is a five-year plan that helps Kenya adapt to climate change and reduce greenhouse gas emissions
MEC MFI carbon program in Kenya is reducing GHG emission by providing low carbon technologies among the under-privileged communities.
mainstream climate change responses and formulate program and plans to enhance the resilience and adaptive capacity of human and ecological systems to the impacts of climate change;
The MEC MFI carbon program in Kenya is instrumental in establishing an ecosystem for the adoption of low-carbon technologies within underprivileged communities.
KYEOP is a transformational project that aims to empower and uplift the well-being of the youth in Kenya by equipping them with essential training, internship and business grant opportunities.
The MEC model educates and empowers microentrepreneurs, creating a skilled workforce in Africa. Additionally, MEC provides training for MFI staff, enhancing their skills in sales, marketing, and the service and maintenance of low carbon technologies.
to empower the target youth to harness their socio-economic potential and increase self-employment opportunities and income levels
The MEC model educates and empowers microentrepreneurs, creating a skilled workforce in Africa. Additionally, MEC provides training for MFI staff, enhancing their skills in sales, marketing, and the service and maintenance of low carbon technologies.
The implementation of the policy objectives will positively respond to the various policy instruments and programs, which address poverty, catalyze industrialization, and protect the environment.
The MEC MFI carbon program in Uganda is instrumental in establishing an ecosystem for the adoption of low-carbon technologies within underprivileged communities.
To ensure a harmonized approach towards a climate-resilient and low-carbon development path for sustainable development in Uganda
The MEC MFI carbon program in Uganda is instrumental in establishing an ecosystem for the adoption of low-carbon technologies within underprivileged communities and supporting the national climate change policy and action plan.
MEC seeks to empower every community by providing access to affordable and innovative clean energy solutions, including solar lighting systems, improved biomass cookstoves, and water purification systems.
With the aim to create a world free of both poverty and climate change, MEC leverages carbon finance through its programs, enabling rural and low-income communities to take control of their clean energy future. MEC's projects in India showcase collaboration, innovative financing, and a comprehensive approach to empowerment to bring enduring transformation for communities in their journey out of poverty.
In working towards a sustainable and eco-friendly future, Micro Energy Credits (MEC) is contributing through transformative projects in Kenya and Uganda. The program supported by Carbon Finance, play a pivotal role in bridging the gap between clean energy solutions and communities-in-need. MEC's holistic approach addresses challenges related to education, pricing, finance, and aftersales services, ensuring a comprehensive impact on the communities it serves.
MEC's African program embodies a comprehensive approach aligned with multiple Sustainable Development Goals (SDGs). By significantly reducing indoor air pollution, it actively contributes to SDG-13. Additionally, providing access to sustainable energy for cooking and lighting addresses the fundamental needs of low-income households, making a positive impact on SDG-1. MEC forms strategic partnerships with Microfinance Institutions to ensure upfront credit facilities for clean energy technologies, supporting affordability through manageable EMIs and contributing to SDG-7. Furthermore, the program plays a vital role in generating local employment opportunities, making a meaningful contribution to SDG-8.
Addressing Barriers for Low-Income Clients:
MEC goes beyond providing clean energy solutions by actively addressing the typical barriers faced by low-income clients. Through comprehensive training programs, project partners are equipped to implement clean energy lending effectively. This includes the establishment of a robust carbon credit monitoring and tracking system to ensure transparency and accountability.
Bridging Gaps through Client Education:
MEC places a strong emphasis on client education to empower communities with information about clean energy solutions. By fostering a deeper understanding of the benefits of clean energy, MEC not only provides a sustainable solution but also brings about a behavioral change towards adopting these technologies.
Utilizing Carbon Finance for Sustainable Impact:
The innovative use of carbon finance is at the core of MEC's projects in Africa, amplifying the impact of clean energy initiatives. Here's how MEC strategically employs carbon finance to drive sustainable change:
Client Education and Marketing:
Carbon finance is allocated to drive client education, awareness campaigns and marketing efforts. This ensures that communities are not only aware of the benefits of clean energy but also actively engage in adopting solutions that help them shift away from traditional fossil fuels to improved clean energy technologies.
Training and Capacity Building:
MEC dedicates resources to training and capacity building programs for micro-entrepreneurs and staff members of Microfinance Institutions (MFIs). Each training program developed by MEC is tailored to the specific needs of partner organizations. These programs aim to improve skills, facilitate effective communication with end-users, and ensure the rigorous use of technology, along with prompt after-sales services, scaling-up, of the program in the long-run.
Lending Funds to Local SMEs:
Recognizing the importance of local businesses especially Small and Medium Enterprises (SMEs), MEC channels funds to support sales of clean energy product. This not only boosts local economies but also creates a self-sustaining cycle of clean energy adoption.
Aftersales Service and Maintenance:
Carbon finance is utilized to provide aftersales service and maintenance, ensuring optimal functionality of the clean energy products. This solidifies community trust and commitment towards adoption and consistent use of clean energy technologies, making the projects more effective in the long run.
Lowering Interest or Principal Costs:
Carbon finance is strategically used to lower interest or principal costs for clients, making clean energy solutions more affordable to low-income communities. This financial cost cutting supported through carbon finance promotes widespread adoption, furthering MEC's mission of creating a sustainable and resilient future.
Sustainable Development Goals (SDG) targeted under MEC’s projects in Africa
Climate Action (Goal 13): The emissions generated by the water purifier are lower compared to boiling water on a standard stove. Likewise, the substitution of kerosene lanterns with SLS results in decreased emissions, leading to a reduction in greenhouse gas (GHG) emissions.
No Poverty (Goal 1): The water purification systems and SLS offer efficient and environmentally friendly access to the basic essential services.
Affordable and Clean Energy (Goal 7): Project provides access to affordable and cleaner technology for drinking safe water i.e. operational WPS and Solar lighting Systems for lightning purpose.
Decent Work and Economic Growth (Goal 8): The project generates local employment for manufacturing, distribution, and maintenance of CEPs.
The overarching vision of MEC's projects in Africa is to enable the installation of solar lighting systems, improved biomass cookstoves and water purification devices throughout the country. By leveraging carbon finance in a multifaceted approach, MEC and its project partners aim to transform communities by providing them clean energy solutions and at the same time empowering them to build a sustainable and resilient future.
MEC's projects in Africa exemplify how collaborative efforts, innovative financing models, and a holistic approach can bring about tangible and lasting change. As we navigate the path towards a greener tomorrow, MEC’s projects pave the way for a future where clean energy is a universally accessible and affordable. Through education, strategic financing, and community empowerment, MEC showcases the potential for a sustainable and brighter future for all.
Image Credit: Freepik
MEC Africa Program: Project Additionality- Common Practice Analysis to Bolster Integrity of Carbon Credits
The concept of common practice in additionality is a critical component in bolstering confidence in carbon offsets and their integrity. MicroEnergy Credits follows a robust process to ensure that all its carbon projects are strictly additional and not common practice.
Common practice analysis helps determine the extent to which a technology is business as usual i.e. has already diffused in a sector and region. Distributed clean energy products in Uganda and Kenya have been able to be deployed only through carbon finance. Several programs by multilateral banks, government initiatives, etc. have had limited success for various reasons, elaborated upon extensively later in the article.
In the context of energy access and clean cooking/lighting services in Kenya and Uganda, challenges and opportunities converge to shape the landscape.
About 0.7% and 20.40% of the populations of Uganda and Kenya, respectively, have access to clean cooking[i], Significantly contributing to indoor air pollution, fire hazards, and adverse health impacts. No or limited access to modern and clean energy sources, such as electricity and clean cooking technologies, remains a pressing issue.
The applicable geographic areas for interventions (rural areas of Uganda and Kenya) are characterized by diverse challenges including economic constraints, lack of infrastructure, and geographic remoteness. Many households face challenges in adopting clean cooking technologies due to high upfront costs, limited awareness, and insufficient supply of products.
MEC’s clean energy program reduces emissions by facilitating a transition from conventional fossil-fuel technologies to more energy-efficient alternatives. Collaborating with our partner microfinance institutions, MEC has identified products that meet the specific requirements of each community. These products include solar lighting systems and improved cookstoves (ICS).
In the period preceding the project's commencement, there was a lack of infrastructure and supportive conditions[ii] for the adoption of renewable technologies such as solar home lighting systems, and improved cookstoves (ICS). The community that the project aimed to assist had limited awareness about these cleaner technologies. Further, the essential products were largely unavailable in the local market, making it challenging for the targeted population to access and benefit from these sustainable and environmentally friendly solutions. Besides that, there was no financing[iii] available for the mentioned products, The upfront cost of these clean technologies was high for a low-income remotely located household. MEC, partnering with MFIs, sought to address these gaps by creating awareness, establishing a supportive ecosystem, enabling financial assistance in the form of microfinance loans, and making these technologies more accessible to the community, thereby contributing to a more sustainable and environmentally conscious way of living.
Projects implemented without carbon finance
Initiatives by the Governments of Uganda & Kenya and multilateral organizations have focused on the implementation of biomass cookstoves. Unfortunately, many of these efforts faced challenges and were largely unsuccessful due to a lack of a comprehensive ecosystem development approach. Most of these programs involved the free distribution of improved cookstoves among low-income households. The key issues contributing to their failure included an insufficient emphasis on behavioral change among end-users, limited access to repair and maintenance services, the inadequate establishment of local supply chains, and the provision of technologies not well-suited to local food habits and cooking styles.
Here is an example of a past program initiated by the Government of Kenya:
Name of Program
Objective
Period
Number of Clean Energy Technology Products Distributed
The Kenya Off-Grid Solar Access Project (KOSAP)
To increase access to modern energy services – electricity and modern cooking solutions– in households, businesses, and community and public facilities in fourteen underserved counties in Kenya
2018-2023
2,50,000 solar home lighting systems 1,50,000 improved cookstoves
A study[iv] conducted by the Lund University suggests that the failure of previous clean cooking programs is attributed to a lack of understanding of user needs. The conventional utility-based model focusing on benefits and price may overlook competing priorities. The cooking needs of stove users are diverse, extending beyond smoke reduction and fuel efficiency. The study underscores the necessity for stove design and dissemination methods to align with features valued by users, even those unrelated to health and environmental impacts. Recognizing user perspectives is vital, as users must value and find their needs met for sustained stove adoption and usage.
Similarly, a study[v] conducted by the Stockholm Environment Institute suggests that the use of carbon finance can benefit – and sometimes even strengthen – improved cookstove projects in several ways. Most cookstove projects using carbon finance are still in the early stages. However, by examining how various types of actors are using (or plan to use) carbon finance within their business models, and how these fit with what the literature tells us about the core ingredients for cookstove market transformation.
Additionally, a study[vi] conducted by the United Nations University, Institute for Advanced Study of Sustainability (IAS) in Machakos and Laikipia counties of Kenya, investigated women's perceptions of health risks related to firewood dependence, their attitudes toward improved cooking charcoal stoves (ICS) as cleaner alternatives, and barriers to adoption. Despite awareness of health risks, there is a projected upward trend in firewood demand. Barriers to ICS adoption vary socio-culturally. The study recommends stakeholder involvement, participatory designs, and leveraging SDG 7 to promote cleaner and sustainable energy sources for cooking.
Overcoming barriers to clean energy adoption with MEC’s carbon funding
There is also evidence to suggest that giveaway programs (i.e. where clean energy products are given for free) are not successful for several reasons, e.g. limited to no focus on end-user awareness, lack of after-sales service, and no capacity development at an individual or institutional level.
The MEC program is not common practice as it utilizes carbon finance to overcome challenges, empowering microentrepreneurs to invest in clean energy products. Initially, MEC collaborates with the microfinance institution to devise an appealing clean energy product offering for its microfinance client base, addressing obstacles such as education, pricing, financing, and the availability of supplies and after-sales service. Subsequently, MEC provides training to the microfinance institution for the implementation of the clean energy-lending program. This training encompasses aspects like business planning, capacity building, marketing and awareness campaigns for client education, and supply chain processes. MEC establishes a robust and transparent system for monitoring and tracking carbon credits, quantifying, and documenting the number of emissions reduced by the clean energy program. Lastly, the carbon finance is employed to expand and sustain the clean energy program through activities such as:
Client education and marketing
Internal training and capacity building
On-lending funds to local SMEs producing clean energy systems
Aftersales service and maintenance
Lowering the interest or principal cost to the client
The common practice analysis conducted in the context of MicroEnergy Credits' carbon programs in Africa underscores the pivotal role of additional practices in ensuring the integrity of carbon credits. MEC's approach, leveraging carbon finance to overcome barriers to clean energy adoption, stands out as a distinctive and effective strategy, addressing challenges ranging from lack of awareness and infrastructure to financing constraints. By integrating microfinance institutions, client education, and comprehensive monitoring systems, MEC not only reduces carbon emissions but also establishes a sustainable and environmentally conscious pathway for rural communities, thereby contributing significantly to the broader goals of carbon mitigation and sustainable development.
MEC Clean Energy Program- Project Additionality: Overcoming Socio-Economic Barriers
Bolstering the Integrity of Carbon Credits
The concept of additionality is a critical component in bolstering confidence in the integrity of carbon credits. MicroEnergy Credits follows a robust process to ensure that all its carbon projects are strictly additional and have a high social impact.
In the Guide to Carbon Offset Utilization, the concept of "quality or integrity" of an offset revolves around the confidence of the stakeholders in the ability of credit to fulfill the emission reduction requirements. The principle of additionality is crucial for boosting trust in carbon credits and safeguarding their integrity. In the context of crediting mechanisms, "additionality" refers to the notion that emission reductions or removals resulting from a mitigation activity are considered additional only if the activity would not have taken place without the additional incentive provided by carbon credits. Essentially, an additional project signifies that it would only be financially viable with carbon funding from market-based mechanisms. To quality as genuine carbon offsets, the reductions from projects must be "additional" compared to what would happen at business as usual. All projects registered under widely accepted greenhouse gas (GHG) project standardsadhere to the guidelines for evaluating and demonstrating additionality as established by the respective GHG crediting programs.
Socio-EconomicBarriers Analysis for Proof of Additionality of MEC’s Clean Energy Program
Barriers faced by low-income households to adopting clean energy technologies in India& Africa
Low-income households in India and Africa face several barriers to adopting clean energy technologies. These barriers are economic, social, and infrastructural. Here are some common challenges:
High Initial Costs: Clean energy technologies have high upfront costs, making them unaffordable for low-income households. This includes the cost of solar panels, improved cookstoves, and other renewable energy technologies. Access to affordable financing options that can help spread out the cost over several years can help low-income households gain access to clean energy technologies and make additional savings when compared to the cost of fossil fuels in the long run.
Limited Access to Finance: Low-income households have limited access to financial resources and face challenges in obtaining loans or financing for clean energy investments. Lack of credit history and collateral. The above-mentioned issues prevent them from forming formal sources of lending such as banks. However, microfinance institutions can significantly contribute by offering small, affordable loans without collateral to low-income households, and enabling them to access and afford low-carbon technologies.
Lack of Awareness: People from low-income households lack awareness and understanding of the benefits of clean energy technologies. Most of these technologies are considered to be of extraterrestrial origin. Limited education and outreach efforts contribute to a lack of awareness regarding available options and potential savings. Besides that, the lack of a market ecosystem for renewable products is also a major constraint for low-income households to get familiar with the technologies. Comprehensive awareness creation exercises can enhance awareness of low-carbon technologies.
Dependency on Traditional Fuels: Low-income households rely heavily on traditional and non-renewable energy sources, such as kerosene, wood, or biomass, which are cheaper in the short term but have negative environmental and health impacts. Implementing a robust behavioral change strategy, which includes raising awareness through training sessions, door-to-door campaigns, and facilitating experiential learning processes, can increase and sustain public trust in low-carbon technologies.
Cultural and Social Factors: Social norms and cultural practices also influence technology adoption. For instance, a lack of acceptance or understanding of new technologies slows down their adoption in low-income Indian communities. Thorough training and capacity-building exercises can dispel myths associated with the technologies and reshape people's perceptions about the technologies.
Maintenance and Repairs: The lack of access to skilled local technicians or maintenance services also discourages low-income households from investing in clean energy technologies and increases the trust deficit in low-carbon technologies. Concerns about the ongoing costs and reliability of these systems create a significant barrier for low-income households to invest and adopt clean energy technologies.
Addressing these barriers requires a comprehensive approach involving government initiatives, financial institutions, awareness campaigns, and community engagement to make clean energy technologies more accessible and attractive to low-income households in India.
In India, MEC's Carbon Program is closing gaps by designing projects that empower low-income households to select the most suitable and dependable clean technologies, supported by carbon finance.
2. Barriers faced by micro finance institutions to fund low-carbon technologies
Historically, a few microfinance institutions have engaged in providing microfinance for low-carbon technologies, However, challenges such as the high cost of hiring additional staff, costs related to marketing and building awareness, understanding of the products and technologies, absence of a local supply chain, concern about reputational risk, limited onward lending funds and challenge in developing products for consumptive loans have always tied the scope of growth. The MEC has introduced a program aimed at helping microfinance institutions overcome these hurdles.
Use of carbon funding to overcome barriers to clean energy adoption
MEC utilizes carbon finance to overcome the barriers - from investing in awareness programs by training MFI partners to empowering microentrepreneurs by accessing loans for the adoption of products and supporting MFI partners to provide aftersales service to customers. MEC begins by collaborating with microfinance institutions to devise an attractive clean energy product offering for its microfinance client base, addressing obstacles such as lack of education, high pricing, access to financing, and delivery and after-sales services. Subsequently, MEC trains the microfinance institutions for the implementation of the clean energy-lending program. This includes business planning, capacity building, and the execution of marketing, awareness/ education, and supply chain processes. MEC has established a robust and transparent system for monitoring and tracking carbon credits, quantifying, and documenting the amount of emission reductions generated by the clean energy projects. Lastly, the carbon finance is employed to expand and sustain the clean energy program through activities such as:
Client education and marketing
Internal training and capacity building
On-lending funds to local SMEs producing clean energy systems
Aftersales service and maintenance
Lowering the interest or principal cost to the client.
MEC employs a rigorous methodology to guarantee that its projects exclusively benefit low-income households in rural India, who would otherwise face challenges in accessing clean energy technologies due to economic and financial obstacles. The utilization of carbon funding is instrumental to overcoming these barriers and eventually bridging the viability gap in investment decisions. Consequently, the carbon credits produced by MEC's carbon programs contribute significantly to socio-economic development and the achievement of Sustainable Development Goals (SDGs).
Ensuring No Over-Crediting of Emission Reductions Due to Double Counting: Stringent Data Management and Exclusive Partnership Contracts
MicroEnergy Credits (MEC) is committed to the ICVCM’s Core Carbon Principles and ensuring that emission reductions from its program are not double counted. According to IC-VCM, the “GHG emission reductions or removals from the mitigation activity shall not be double counted, i.e., they shall only be counted once towards achieving mitigation targets or goals” (ICVCM, 2023).
Double counting covers double issuance, double claiming, and double use. Double claiming and double use are risks managed by standards that certify the projects. MEC’s projects are certified by reputed standards like Gold Standard and Verra which have mechanisms in place at their registry level to ensure that double claiming does not occur. Double Issuance occurs when two or more carbon credits co-exist for one GHG emission reduction or removal, under the same or different carbon-crediting or other programs. MEC takes stringent measures to ensure that there is no double issuance of credits from a single household or that no other entity is issuing credits from the same project. MEC employs a robust database management team that develops customised data model algorithms and proprietary software that surgically scans and eliminates any duplicate records of end-users through multiple levels of data modeling checks. To implement these checks successfully, MEC engages with partner organisations to submit an extensive monthly database of loan records corresponding to clean energy product sales. Moreover, MEC’s contract agreement with partnering organisations includes a rigorous exclusivity clause for the carbon project implementation within a specified geographical area.
Checking for duplicate records
Duplicate records can happen due to human error in entering records or erroneous data submission. Since MEC’s carbon program follows a market-driven approach, every end-user of the clean energy product is accessing affordable financing options from a partner microfinance institution (MFI). Therefore, all clean energy product loans have a unique transaction number. In the monthly data submitted by MFIs, MEC checks all transaction records in the entire database and eliminates all duplicate transaction numbers as double entries or erroneous records. This way, we can eliminate any human error or the possibility of erroneous data submission that may inflate the emission reduction calculations and generate more carbon credits than the actual. This method might sometimes even lead to under-crediting, which preserves the principle of conservativeness in the calculation of carbon credits.
Double-layer scrutiny with checks for overlapping records.
MEC works with several MFIs across different crediting periods, which means that there is a possibility that a single end-user may be a client of multiple MFIs at the same time. Sometimes end users may access a cross-sale loan from multiple MFIs for the same technology device. End users can also access an MFI for multiple loans for similar technologies across different loan periods. There is a risk that an end-user might end up with more than one solar light, improved cookstove, or water purifier during the same crediting period. While one may argue that an end-user may need multiple units of similar devices and may be using them regularly, by the principle of conservativeness in carbon credits, only the first unit may be eligible for calculation of carbon credits as that unit is reducing emissions over the baseline under a business-as-usual scenario. Therefore, it becomes imperative that all succeeding and overlapping devices of the same technology type are eliminated while calculating the emission reductions from the carbon program.
MEC applies a second layer of checks (beyond duplicate entries) for overlapping user account identifications by carefully identifying patterns and matches in all historical customer identifier data fields. MEC sends all overlapping records to partner MFIs for clarification, and only upon submission of satisfactory evidence does MEC include such records in the current monitoring period, otherwise these records are eliminated.
MEC also eliminates the possibility of overlapping loan products across partner MFIs by scrutinizing the entire database across different partners by applying partial matching algorithms on end-user demographic microdata. This helps us scan out overlapping sales, which we send for clarification to different partner organizations for a common data field. MEC eliminates all overlapping records from the database and only includes unique records in the emission reduction calculations.
MEC has developed a proprietary data warehousing and processing software called the Credit Tracker, which applies all these complex data modeling algorithms to ensure that the data integrity is maintained by elimination of over-crediting due to double counting across the entire program in the defined geographical area. Our Credit Tracker software is ever-evolving, and the current version is upgraded with state-of-the-art big data algorithms to identify noise across a heterogeneous database of over 9 million households across the globe.
Distinction between MEC's CER and VER portfolio
MEC ensures that the emission reductions from its projects and the related climate impacts are counted only once. MEC ensures that there is no double issuance because:
There is no overlap between the CDM monitoring periods and GS/Verra monitoring periods for any of these PoA/projects.
There are no issued CERs that have been converted to GS-VERs or VCUs.
Exclusivity clause
The concept of exclusivity is deeply embedded in the partnership agreements between MEC and partnering MFIs. MEC signs partnerships with MFIs on the ground that all clean energy projects by the partnering entity shall only be registered under MEC’s carbon program. This ensures that no partnering MFI can claim carbon funding from any other project developer while being a part of MEC’s carbon projects. Through continuous training and engagement with partners, MEC implements the concept of exclusivity in all carbon projects to avoid any possibility that two or more mitigation activities have overlapping GHG accounting boundaries in the carbon market which could lead to double issuance. This enables us to implement a market-wide check and balance since MEC is the trusted carbon program partner to all major MFIs in the geographical area.
MEC’s stringent data management and exclusive contracts can set out a market-wide standard for upholding the integrity of carbon credits and eliminate doubts that different market participants may have on the issue of over-crediting due to double counting.
MEC Africa Program – Microfinance for Solar Lamps & Efficient Cookstoves: Project Design & Monitoring Documents
In line with our commitment to transparency and integrity, we are providing all details of and access to audited documents pertaining to our carbon programs here. This initiative aims to ensure that stakeholders have access to program details and documentation in an easy-to-use way.
MEC Africa Program – Microfinance for Solar Lamps & Efficient Cookstoves
In both rural areas of Kenya and urban areas of Uganda, the predominant means of cooking involves traditional cook stoves using charcoal, wood, or kerosene, leading to significant indoor air pollution and adverse effects on human health. The lack of grid connection or frequent power outages in these regions necessitates the use of kerosene for indoor lighting, further contributing to indoor air pollution. The proposed project activity, spearheaded by MicroEnergy Credits Corporation (MEC), aims to address these challenges through the marketing, distribution, and financing of approximately 650,000 solar lighting systems (SLS) and 10,000 improved cook stoves (ICS) in Kenya, as well as 650,000 solar lamps and 75,000 improved cook stoves in Uganda.
This comprehensive initiative targets low-income households, community organizations, and small/medium enterprises, providing them with clean and renewable energy solutions for both cooking and lighting. MEC collaborates with project partners to establish a successful clean energy-lending program, overcoming barriers such as education, pricing, finance, and supply and aftersales service. The program includes training for project partners in implementing the lending initiative and incorporates a robust carbon credit monitoring and tracking system to quantify and document carbon emission reductions achieved through the adoption of clean energy. The utilization of carbon finance ensures the expansion and sustainability of the clean energy program in both regions. This report delves into the details of these initiatives, exploring their impact on environmental sustainability, human health, and the overall well-being of communities in Kenya and Uganda.
The following CDM Program of Activities where MicroEnergy Credits is the Coordinating and Managing Entity (CME) have transitioned to Gold Standard or Verra:
CDM PoA 9181 titled “MicroEnergy Credits – Microfinance for Clean Energy Product Lines” transitioned to GS PoA ID 11450 titled titled “MicroEnergy Credits – Microfinance for Clean Energy Product Lines”
CDM PoA 8142 titled “MicroEnergy Credits – Microfinance for Clean Energy Product Lines – Mongolia” to GS PoA ID 11616 titled “MicroEnergy Credits – Microfinance for Clean Energy Product Lines – Mongolia”
CDM PoA 11341 titled “MicroEnergy Credits – Microfinance for Clean Energy Product Lines – Mongolia” to Verra projects as follows:
MICROENERGY CREDITS – MICROFINANCE FOR CLEAN ENERGY PRODUCT LINES – AFRICA – SOLAR LAMPS & EFFICIENT COOK STOVES – 10341 –CPA – 0005
MICROENERGY CREDITS – MICROFINANCE FOR CLEAN ENERGY PRODUCT LINES – AFRICA – SOLAR LAMPS & EFFICIENT COOK STOVES – 10341 –CPA – 0004
MICROENERGY CREDITS – MICROFINANCE FOR CLEAN ENERGY PRODUCT LINES – AFRICA – SOLAR LAMPS & EFFICIENT COOK STOVES – 10341 –CPA – 0003
MICROENERGY CREDITS – MICROFINANCE FOR CLEAN ENERGY PRODUCT LINES – AFRICA – SOLAR LAMPS & EFFICIENT COOK STOVES – 10341 –CPA – 0002
MICROENERGY CREDITS – MICROFINANCE FOR CLEAN ENERGY PRODUCT LINES – AFRICA – SOLAR LAMPS & EFFICIENT COOK STOVES – 10341 –CPA - 0001
No double counting in credit transfer is ensured because:
There is no overlap between the CDM monitoring periods and GS/Verra monitoring periods for any of these PoA/projects.
There are no issued CERs that have been converted to GS-VERs or VCUs.
Clean Energy Funding – Changing One Life at a Time: Story of Christine Wambui
The grit, determination, and can-do attitude of our women partners, who are fast emerging as clean energy leaders, is something we can all learn from. Their stories are stories of courage, where they embrace clean energy, and not only make a difference to their lives but also to the lives of many others.
By embracing clean energy alternatives, our local community partners create a positive impact on their families' well-being, addressing issues like indoor pollution, respiratory ailments, water-borne diseases, and reducing carbon emissions. Their goal as micro-entrepreneurs is to share these benefits with others. They tirelessly travel from village to village, raising awareness and conducting product and tech demonstrations, serving as a daily source of inspiration.
Our women partners gain the means to generate and stabilize their finances, leading to financial independence. This empowerment allows them to take charge of their lives and make improved lifestyle choices that have far-reaching effects. Consequently, this strengthens families, communities, and countries, contributing to a positive global change.
With extensive experience in India, Africa, and Mongolia, MicroEnergy Credits collaborates with a diverse range of microfinance institutions (MFIs), non-banking financial corporations (NBFCs), and banks on clean energy lending programs. We build upon this experience and deep understanding of market conditions to enable the accessibility of clean energy alternatives. Working alongside our MFI partners, we empower communities to take control of their clean energy future in a way that upholds their families and local economies with dignity.
Impact Story
Christine is a mother of three and a part of the MEC network. She uses the improved cookstove and says, "Its faster, economical, saves me more than 50 shillings a day. Also, as it has less fumes, it is favorable with children. I love it".
"I am also a business lady. I promote health and household products in my community. Once I personally used and liked the cookstove and solar lights, I also introduced them to my friends and neighbors. I want them to benefit as well. They are all so happy with these products," she adds. According to Christine, the loans are very beneficial, thanks to the MFI partner, Equity bank, that gives easy loans. "I am getting new customers every day. Profits are increasing and so are my customers," she concludes.
