Blockchain company Ripple has allocated $100 million to accelerate carbon removal activity and aid in modernizing such markets with the help of investments in innovative carbon removal firms and sustainable financial tech platforms.
According to the official press release, Ripple also plans to create a “portfolio of additive, long-term, nature and science-based carbon credits, back innovative carbon-removal technology companies and market makers.”
Some of these will be utilized to meet its own commitment to accomplish net-zero in less than a decade. The funding will also focus on supporting new functionality and developer tools that allow carbon credit tokenization as core NFTs on the public blockchain – XRP Ledger (XRPL).
Speaking about the commitment, Ripple Chief Brad Garlinghouse stated,
“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.”
He also went on to highlight that blockchain technology and the cryptocurrency industry too can play a catalytic role in facilitating carbon markets to achieve their full potential by driving more liquidity and traceability to what Garlinghouse believes is a “fragmented, complex market.”
Monica Long, General Manager of RippleX, on the other hand, is of the opinion that tokenizing carbon credits can play a crucial role in the long run.
As such, by integrating blockchain with global climate initiatives, Long said the industry could verify and certify NFT carbon credits, remove fraud concerns and effectively address the climate crisis.
The commitment comes on the heels of Ripple’s new partnership announcement with Lithuania’s FINCI.
As reported earlier, the move aims to offer retail remittances and B2B payments via RippleNet’s On-Demand Liquidity (ODL).