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Ripple has announced that it will allocate $100 million to global carbon markets as part of its efforts to accelerate carbon removal and innovation.
The funds will be used to finance innovative carbon removal companies, which have great potential, and other fintech companies in this area that seek to combat climate change.
Ripple will also create a portfolio of additional long-term carbon credits based on nature and science, some of which will be used to meet its own commitment to achieve net-zero emissions by 2030 or sooner.
In addition, funding will be used to support new developer features and tools that provide tokenization of carbon credits as the main non-fungible tokens (NFT) in the registry XRP (XRPL).This commitment will help move towards globally agreed climate targets to limit the rise in global temperature to 1.5 degrees Celsius.
«Ripple’s strategic investments will have a significant impact on driving carbon removal innovation, improving the delivery of carbon credits, and developing global carbon market tools and solutions. We applaud Ripple’s leadership in providing transparency and verification in this rapidly expanding field.”
In 2020, Ripple Announced about its plan to become carbon neutral by 2030 and is going to do it earlier, by 2028, achieving this goal will make Ripple the first major blockchain in the world to become carbon neutral. Working with independent non-governmental organizations such as the Energy Web Foundation and the XRP Ledger Foundation, Ripple helped XRPL become the first major carbon-neutral blockchain in 2020. Ripple will spend $100 million to fund key initiatives, including:
- Build a portfolio of high-quality, existing and future carbon credits to help capitalize on the most efficient and scalable carbon removal methodologies and projects.
- Investments in innovative carbon removal technology companies and market makers using blockchain, cryptocurrency and other financial technologies to accelerate supply and unlock exponential value to both buyers and suppliers.
- Support for new developer features and tools for creators and developers focused on solutions for carbon markets and NFT for carbon credits in XRPL.
- Continuing to collaborate with the world’s leading climate and environmental organizations to develop new carbon removal methodologies as well as distributed, stakeholder-led management models, ensuring greater equity, revenue and equity for suppliers, particularly in developing countries.
“Tokenizing carbon credits can play a vital role in scaling carbon markets and meeting growing demand, while ensuring the reliability, integrity and transparency of existing markets. Several carbon removal projects and fintechs are already using 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 possibility of fraud, and even ensure that compensation actually removes carbon in the long run.”Says Monica Long, general manager of RippleX’s Pulsation.
Ripple cooperates with leading companies in the field of climate
Ripple has partnered with leading carbon removal companies and carbon producers. These include CarbonCure Technologies, whose suite of technologies continuously stores trapped CO2 in concrete through carbon mineralization; Xange.com, a climate-focused fintech (supported by the UN) that builds its carbon credit verification, tokenization, and exchange functions on XRPL; and Invert, a carbon offsetting company that seeks and invests in high-quality carbon credit projects.
In addition, Ripple works alongside key climate players, including the Energy Web Foundation, the Rocky Mountain Institute, and the Alliance for Innovative Regulation. Ripple co-founded the Crypto Climate Accord, which since its launch in AprSince 2021, more than 500 participants from the sectors of cryptocurrency and finance, technology, NGOs, energy and climate have entered.
Ripple is one of the founders of the Crypto Impact and Sustainability Accelerator (CISA) of the World Economic Forum.
As a result, Ripple is expected to become a leader in this growing industry, as the carbon credit market is likely to become one of the fastest growing markets in the coming years.
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