Ripple, the crypto solutions company shall commit $100M for the goal of carbon removal by investing in climate oriented fintech companies.
The blockchain-based payments network has aimed to facilitate the acceleration of carbon removal technology in order to bring about modernization of the carbon markets.
Carbon markets will let companies and individuals trade carbon credits for offsetting CO2 emissions that some companies haven’t found a way to bypass yet.
According to reports, these funds will be directed towards Ripple’s portfolio of programs helping it become net zero by 2030.
Along with the same, the fund will support the new functionality and developer tools that will empower carbon credit tokenisation as non-fungible tokens (NFTs) on XRP ledger.
CEO Brad Garlinghouse, stated that this move by Ripple Labs will play “a catalytic role” which will work towards improving the carbon markets.
Call To Action’ On Climate Concern By Ripple
Brad Garlinghouse claims that this fund is a “direct response to the global call to action” on climate change.
Garlinghouse also stated that companies are now encouraged to dispose resources along with talent as a global response to encourage carbon removal activities in order to bring down the rise of global temperature by curbing carbon emissions.
Ripple has been in the fore for speaking about the wastefulness if mining as the coin is by far the most energy efficient cryptocurrency.
He further added,
While reducing emissions and transitioning to a low-carbon future are paramount, carbon markets are also an important tool for meeting climate goals. Blockchain and crypto can play a catalytic role in allowing carbon markets to reach their full potential, bringing more liquidity and traceability to a fragmented, complex market
Ripple Has Partnered With Other Companies To Aid In Reducing Carbon Emissions
The company has additionally partnered with many other companies who are involved within the carbon markets. These partnerships will help achieve the goals of reducing the carbon emissions.
The company had partnered with carbon mineralisation firm CarbonCure Technolgies, Tokenization start-up Xange.com which was backed by the UN and lastly the carbon offsetting firm Invert.
Ripple has also collaborated with Energy Web Foundation, the Alliance for Innovative Regulation, and Rocky Mountain Institute.
Monica Long, General Manager of RippleX at Ripple said that,
Several carbon removal projects and fintechs are already building on the XRPL to bring new climate solutions to market. By bringing blockchain to global climate initiatives, the industry can more quickly verify and certify NFT carbon credits, eliminate the potential for fraud, and even guarantee the offset is actually removing carbon for the long term.
Ripple has co-founded the Crypto Climate Accord, which had enlisted more than 500 members spread across the fields of crypto and finance, technology, NGO, and energy and climate sectors. Ripple is also a founding member of the World Economic Forum’s Crypto Impact and Sustainability Accelerator (CISA).