Financial technology company Ripple, located in San Francisco, has pledged $100 million to “scale and enhance” the global carbon market.
In the words of Ripple’s news release, “investments in innovative carbon removal enterprises and climate-focused fintechs” would “accelerate carbon removal activities and assist modernise carbon markets.” Aside from that, Ripple says it plans to “create a portfolio of carbon credits derived from nature and science that will be utilised to reach its own goal of net zero emissions by 2030 or sooner.”
As a result of this financing, XRP Ledger will be able to “continue to offer additional features and developer tools that allow carbon credit tokenization as core non-fungible tokens.”
In order to “support progress toward internationally agreed climate targets to limit the global temperature increase to 1.5 degrees Celsius,” this pledge was made.
Brad Garlinghouse, the company’s CEO, said the following: “Our $100 million pledge is a direct reaction to the global call to action for firms to help solve climate change by deploying resources, including innovative technology, strategic money, and people. However, carbon markets are also an essential instrument for accomplishing climate objectives while lowering emissions and transitioning to a low-carbon future. For carbon markets to attain their full potential, the use of blockchain and crypto may be a catalyst for greater liquidity and traceability in a fragmented and complicated market.”
So far, Ripple has been on schedule to meet its 2030 objective of becoming carbon neutral while also achieving this goal by 2028. The XRP Ledger Foundation and the Energy Web Foundation have worked with the firm to decarbonize XRPL, making it the first carbon-neutral blockchain.
According to Monica Long, the Ripple X General Manager, RippleX: Scaling carbon markets and guaranteeing the integrity, integrity, and transparency of current markets may be achieved by the tokenization of carbon credits. The XRPL is already being used by a number of carbon removal initiatives and fintechs to bring innovative climate solutions to the market. With the use of blockchain technology, the industry can check and validate NFT carbon credits faster, reducing the risk of fraud and ensuring that the offsets are indeed eliminating carbon from the atmosphere over the long term.
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