Ripple has announced it has committed $100 million in funding towards blockchain innovation meant to scale carbon removal.
The funding, which will go into companies in carbon markets, is also earmarked for climate-focused fintech startups, Ripple said on Thursday.
According to the press release, the funds will also go into Ripple’s portfolio of programs targeted at helping it become net zero by 2030. Apart from that, Ripple will use the funds to support efforts in carbon credit tokenization as non-fungible tokens (NFTs).
This, the company noted, will occur on the XRP Ledger (XRPL), with blockchain technology helping to ensure the authenticity of carbon credit NFTs.
A ‘call to action’ on climate change
Brad Garlinghouse, the CEO of Ripple noted that the funding is the company’s “direct response to the global call to action” on climate change. He said that companies are being encouraged to deploy resources, and even talent as part of the global response to curbing 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.
Today, @Ripple is committing to invest $100M to modernize carbon markets globally, through investing in carbon removal companies and supporting growth in carbon credit tokenization functionality (Hear me out, NFTs aren’t just about digital art…) https://t.co/MYrxEO6WfN
— Brad Garlinghouse (@bgarlinghouse) May 19, 2022
According to the Ripple chief, the $100 million commitment is one more step towards ensuring rising global temperatures are limited below 1.5 degrees Celsius.
Ripple has partnered with several companies within the carbon markets to help achieves its goals, including carbon mineralization firm CarbonCure Technologies, UN-backed tokenization startup Xange.com and carbon offsetting firm Invert.
The company is also collaborating with Energy Web Foundation, the Alliance for Innovative Regulation, and Rocky Mountain Institute.