Ripple is committing $100 million to carbon markets with the aim of accelerating development of carbon removal technology and climate-focussed FinTechs.

The enterprise blockchain and crypto exchange giant said the funding will target innovative carbon removal companies and help to modernise carbon markets.

The company said it will also build 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.

In addition, 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).

The company said the pledge will help progress towards globally agreed climate goals to limit global temperature rise to 1.5 degrees Celsius.

The move comes as governments and consumers raise concerns over the environmental impact of cryptocurrency mining and related activities, which require large amounts of energy.

Ripple has been working with NGO partners including the Energy Web Foundation and the XRP Ledger Foundation to help decarbonize the XRPL, which it claims was the first major blockchain to become carbon neutral in 2020.

Ripple said it had taken the decision to invest in the acceleration of carbon markets, as current providers are struggling to keep up with exploding demand, inhibited by supply bottlenecks and slow time to market, and a dearth of high quality, verifiable products.

The company said that to meet climate goals on a global scale, carbon markets need enhanced mechanisms for project verification and certification; greater transparency in pricing and market data; and improved infrastructure for both buyers and suppliers.

Commenting on the move, Brad Garlinghouse, chief executive of Ripple said: “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.”

Share Story: