Ripple to invest $100 million in climate-friendly innovation
Ripple has announced that it will invest $100 million in blockchain research meant to scale carbon removal.
This money will also be available for fintech startups working in the field of climate change, according to Ripple.
The Ripple for Good program will invest in companies and technologies that are “driving large-scale carbon removal,” said Ripple chief executive Brad Garlinghouse.
The grant will also go towards Ripple’s portfolio of programs aimed at enabling the company to become net zero by 2030.
According to a press release. Apart from that, Ripple will utilize the money to promote carbon credit tokenization through non-fungible tokens (NFTs).
Ripple’s chief financial officer (CFO) suggests that the company’s investment in this area will be used to help it “accelerate the transition to a low-carbon economy.”
The move by Ripple comes as part of a larger trend in which businesses are looking to use blockchain technology; to tackle climate change.
With XRP, the company says that carbon credits may be verified and traded on a blockchain. This will happen on the XRP Ledger (XRPL), with blockchain technology assisting in the verification of carbon credit NFTs.
The Ripple team believes that this will help to make the carbon credit market more efficient, as well as provide the much needed transparency.
The need for action on climate change
The cash is Ripple’s “immediate response to the worldwide call to action on climate change,” according to Brad Garlinghouse, the firm’s CEO.
He says that businesses are being urged to deploy resources and even talent as part of the global reaction to reducing emissions.
“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,” Garlinghouse added.
However, Ripple is not alone in its blockchain-based response to climate change. The IOTA Foundation is also working on a Climate Passport project.
Which will be used to store data about an individual’s or product’s carbon footprint. This will help to create a decentralized way of measuring and offsetting emissions.
The co-founder of Ripple says that the $100 million pledge, is one more step towards preventing global temperatures; from rising more than 1.5 degrees Celsius.
Ripple has collaborated with several organizations in the carbon markets to assist it to reach its objectives. Including UN-backed tokenization startup Xange.com, carbon offsetting outfit Invert, and CarbonCure Technologies.
The company has also been working with the Climate Chain Coalition, a group of organizations that are using blockchain to combat climate change.
Ripple’s investment will be used to finance projects. That supports the development of carbon-neutral technologies and helps remove carbon dioxide from the atmosphere.
The company has previously joined forces with other companies to promote sustainability such as when it partners with. Rocky Mountain Institute, Business Renewables Center (BRC), and Energy Web Foundation to help accelerate corporate investments in renewable energy.
This is not the first time that Ripple has looked to use its blockchain technology for good. The company has been a supporter of the Paris climate accord and has invested in renewable energy projects.
The company has also been working on many other initiatives. Designed to promote financial inclusion and provide access to banking services for those who need it most.
Ripple’s move is also in line with its recent focus on environmental, social, and governance (ESG) issues.
The company has been vocal about its commitment to sustainability. And this latest announcement is another way of Ripple putting its money where its mouth is.