Blockchain company Ripple has allocated $100 million to accelerate its decarbonization activities and help modernize such markets with the help of investments in innovative decarbonization firms and sustainable financial technology platforms.
According to the official press release, Ripple also plans to “support a portfolio of additive, long-term, nature and science-based carbon credits, innovative decarbonization technology companies and market makers.”
Some of these will be used to meet the commitment to reach net zero in less than a decade. Funding will also focus on supporting new functionality and developer tools that allow for carbon credit tokenization as core NFTs on the public blockchain XRP Ledger (XRPL).
Speaking about the commitment, Ripple Chief Brad Garlinghouse said:
“Our $100 million commitment is a direct response to the global call to action to help companies address climate change by deploying resources including innovative technology, strategic capital and talent. Reducing emissions and transitioning to a low-carbon future is crucial, while carbon markets are in line with climate goals. It's an important tool to achieve."
He also highlighted that blockchain technology and the cryptocurrency industry can also play a catalyst role in facilitating carbon markets to reach their full potential by providing greater liquidity and traceability to what Garlinghouse believes is a “fragmented, complex market.”
Monica Long, Managing Director of RippleX, is of the opinion that tokenization of carbon credits can play a crucial role in the long run.
Long said that by integrating blockchain with global climate initiatives, the industry can verify and approve NFT carbon credits, remove fraud concerns and effectively address the climate crisis.
The commitment comes right after Ripple's new partnership announcement with Lithuanian FINCI.
Ripple has announced a partnership with Lithuania's FINCI to provide retail remittance and B2B payments via RippleNet's On-Demand Liquidity (ODL). A PR from Ripple said that thanks to this partnership, FINCI's customers will be able to make seamless payments between Europe and Mexico. FINCI is an online international money transfer provider. RippleNet's ODL, on the other hand, provides crypto-enabled international payments. ODL leverages global crypto liquidity to provide customers with enterprise-grade solutions for international payments. Ripple is the market leader in crypto-backed international payments.