Ripple, a blockchain-based transactions network, revealed plans to invest $100 million in environment fintechs and carbon reduction technologies to modernise carbon markets.
The funds will also be used to support new features and development tools. It will further allow carbon credits to be tokenized as non-fungible tokens (NFTs) on the XRP Ledger (XRPL).
Goal is to be carbon neutral
Ripple said it will create a collection of cumulative, long-term, environmental and science-based carbon credits. Some of them will be utilised to accomplish its own goal of being carbon-neutral by 2030.
According to the 2015 Paris Agreement, 196 countries have agreed to keep global warming under 2°C. It implies a 45% drop in global carbon dioxide emissions from 2010 by 2030.
Ripple stated in its statement that blockchain and crypto have unique aspects of accessibility, authentication, and scalability. These qualities may help overcome many of the market’s largest barriers to development and efficacy.
In 2021, Ripple co-founded the Cryptocurrency Climate Change agreement, which now has over 500 members.
