Ripple Now Commits $100M To Fight the Climate Change
Ripple today announced its commitment of $100 million to carbon markets. The funding will accelerate carbon removal activity and help modernize carbon markets through investments in innovative carbon removal companies and climate-focused fintechs.
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 achieve net zero by 2030 or sooner.
In addition, the funding will continue to support new functionality and developer tools that enable carbon credit tokenization as core 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.
Carbon markets are struggling to keep up with exploding demand, inhibited by supply bottlenecks and slow time to market, and a dearth of high quality, verifiable products. To meet climate goals on a global scale, carbon markets need enhanced mechanisms for project verification and certification; greater transparency in pricing and market data; and improved infrastructure for both buyers and suppliers. Blockchain and crypto, with innate qualities of transparency, verification and scalability, can help address many of the market’s biggest obstacles to growth and efficacy.
“Our $100 million commitment is a direct response to the global call to action for companies to help address climate change by deploying resources, including innovative technology, strategic capital and talent. 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,” said Brad Garlinghouse, CEO of Ripple.
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 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 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. 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,” says Monica Long, General Manager of RippleX at Ripple.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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