Ripple, the leader in enterprise blockchain and crypto solutions, announced that it has pledged a total of $100 million to scale and strengthen global carbon markets.
In a media release, Ripple stated that the funding will be utilized to accelerate carbon removal activities and help modernize carbon markets through investments in innovative carbon removal companies and climate-focused fintech firms.
“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,” –Brad Garlinghouse, CEO of Ripple
The crypto solutions will also create 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.
“Carbon offset markets are expected to grow to $550B(!) by 2050, and we’ve seen firsthand how crypto & blockchain can solve issues w/ fraud and inefficiencies, and bring transparency and scalability to carbon credits just the same as other real-world use cases like payments. LFG!” Garlinghouse tweeted.
Further, 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
Monica Long, General Manager of RippleX at Ripple, noted that 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,” she added.
In line with this, Ripple promises to continue 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.
Currently, it is partnered with field-leading carbon removal companies and carbon market makers like; CarbonCure Technologies, whose suite of technologies permanently store captured CO2 in concrete through carbon mineralization; UN-backed Xange.com, a climate-focused fintech, which is building its carbon credit verification, tokenization and exchange functionality on XRPL; and Invert, a carbon offsetting company to source and invest in high-quality carbon credit generation projects.
“To address the climate crisis, we need all hands on deck. Growing the market for high-quality carbon removal and reductions – like what we provide here at CarbonCure – is a key part of the solution… Ripple’s strategic investments will have a significant impact on advancing carbon removal innovations, improving carbon credit delivery and growing global carbon market tools and solutions. We applaud Ripple’s leadership in ensuring transparency and verification in this rapidly expanding field.” –Robert Niven, Chair and CEO of CarbonCure Technologies
Steven Witte, COO & Co-Founder at Xange.com stated that as efforts to decarbonize the global economy increase, demand for carbon credits will only increase. He pointed out that the industry needs to “evolve its existing infrastructure and verification methodologies to address our climate needs.”
Lastly, Ripple added that it is working alongside key climate players, including Energy Web Foundation, Rocky Mountain Institute and the Alliance for Innovative Regulation.
Also, Ripple co-founded the Crypto Climate Accord, which has enlisted over 500 members spanning the crypto and finance, technology, NGO, and energy and climate sectors, since launching in April 2021. Ripple is a founding member of the World Economic Forum’s Crypto Impact and Sustainability Accelerator (CISA).
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