The popular blockchain company is still in the business of sponsoring carbon removal solutions.
Following its mission to achieve carbon net zero by 2030, popular fintech company Ripple has made a $100 million commitment to aid and support the development of carbon removal solutions.
Ripple noted in a press release today that the fund will be invested in companies developing carbon removal solutions, in a bid to facilitate carbon removal activities while modernizing the global carbon market.
How Ripple Plans to Use the Funds
Notably, the popular blockchain company plans to use part of the fund to develop a portfolio of natural and science-based carbon credits as part of efforts to meet its net zero 2030 goal.
The funding will also come in handy to support new functionalities and tools that aid carbon credit non-fungible tokens on Ripple’s XRP Ledger (XRPL), the announcement adds.
According to the press release, the $100 million commitment made by Ripple will help achieve the global climate goal, which tends to reduce the world’s temperature rise to at least 1.5 degrees celsius.
What Prompted the Investment
Ripple noted that it made the $100 million commitment because the global carbon market is struggling to meet up with the skyrocketing demand for carbon credit solutions.
The fintech company noted that before the world’s carbon markets can reach climate goals, it would require improved infrastructure for both buyers and sellers.
Commenting on the development, Brad Garlinghouse, Ripple’s CEO and founder, said the firm’s $100 million commitment to the carbon market is in response to widespread calls for companies to address global climate change by channeling resources, including monetary and talent, to tackle the issue.
“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.
Ripple Focus on Developing Carbon Credit Solutions
Despite its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) that has plunged the price of XRP, the cryptocurrency linked to the company, Ripple has been devoted to supporting the development of carbon credit solutions.
Last month, Ripple announced a partnership with Invert Inc., a carbon offsetting company, in a bid to develop carbon solutions.
In March, Ripple’s chairman Chris Larsen also announced a $5 million pledge to sponsor a campaign that will force the world’s largest cryptocurrency Bitcoin (BTC) to transition from its Proof-of-Work (PoW) algorithm to a Proof-of-Stake (PoS).