Enterprise blockchain and crypto solutions Ripple will be investing $100 million in carbon markets, which is meant to accelerate carbon removal activity. The funding will also help modernize carbon markets through investments in innovative carbon removal companies and climate-focused fintech (financial technology).
Ripple will also build a portfolio of additive, long-term, nature- and science-based carbon credits, some of which will be used to meet its own commitment to achieving net-zero by 2030 or sooner. The funding will continue to support new functionality and developer tools that enable carbon credit tokenization as core non-fungible tokens (NFTs) on the XRP Ledger (XRPL).
“This commitment will help progress towards globally agreed climate goals to limit global temperature rise to 1.5 degrees Celsius,” Ripple said in a media release.
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“While reducing emissions and transitioning to a low-carbon future are paramount, carbon markets are also an important tool for meeting climate goals,” said Brad Garlinghouse, CEO of Ripple. “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.”
In 2020, Ripple announced its plan to go carbon neutral by 2030 and is on track to do so by 2028. Working with independent NGO partners like the Energy Web Foundation and the XRP Ledger Foundation, Ripple helped decarbonize the XRPL, the first major blockchain to become carbon neutral in 2020. To further its commitment to sustainability, Ripple’s $100M will fund key initiatives including:
- Building a portfolio of high-quality, existing, and future carbon credits to help capitalize on the most impactful and scalable carbon removal methodologies and projects.
- Investing in innovative carbon-removal technology companies and market makers utilizing blockchain, crypto, and other financial technology to accelerate supply and unlock exponential value for both buyers and suppliers.
- Supporting new functionality and developer tools for creators and developers focusing on carbon markets solutions and carbon credit NFTs on the XRPL.
- Continuing to partner with the world’s leading climate and conservation organizations to develop new methodologies for carbon removal, along with distributed stakeholder-led governance models, creating greater fairness, revenue, and equity for suppliers, especially in the developing economies.
“Tokenizing carbon credits can play a vital role in scaling carbon markets and meeting growing demand while ensuring the credibility, integrity, and transparency of existing markets,” Monica Long, general manager of RippleX at Ripple. “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.”
Categories: blockchain, Cryptocurrency