Saturday, 2 July 2022

Ripple commits $100 million to scale and strengthen global carbon markets

5 min read

Ripple, one of the leading enterprise blockchain and crypto solutions announced its commitment of $100 million to carbon markets. The funding will accelerate carbon removal activity and help modernise carbon markets through investments in innovative carbon removal companies and climate-focused fintechs.

Ripple 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 tokenisation as core non-fungible tokens (NFTs) on the XRP Ledger (XRPL). This commitment will help progress towards globally agreed climate goals to limit global temperature rise to 1.5 degrees Celsius.

Carbon markets 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. 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. Blockchain and crypto, with innate qualities of transparency, verification and scalability can help address many of the market’s biggest obstacles to growth and efficacy.

Brad Garlinghouse, CEO 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”.

In 2020, Ripple announced its plan to go carbon neutral by 2030 and is on track to do so by 2028. Working with independent NGO partners like the Energy Web Foundation and the XRP Ledger Foundation, Ripple helped decarbonise the XRPL, the first major blockchain to become carbon neutral in 2020. To further its commitment to sustainability, Ripple’s $100 million will fund key initiatives including:

●Building a portfolio of high-quality, existing and future carbon credits to help capitalise the most impactful and scalable carbon removal methodologies and projects.

●Investing in innovative carbon-removal technology companies and market makers utilising blockchain, crypto and other financial technology to accelerate supply and unlock exponential value for both buyers and suppliers.

●Supporting new functionality and developer tools for creators and developers focusing on carbon markets solutions and carbon credit NFTs on the XRPL.

●Continuing to partner with the world’s leading climate and conservation organisations to develop new methodologies for carbon removal, along with distributed stakeholder-led governance models, creating greater fairness, revenue and equity for suppliers, especially in the developing economies.

Monica Long, general manager of RippleX at Ripple said, “Tokenising carbon credits can play a vital role in scaling carbon markets and meeting growing demand while ensuring the credibility, integrity and transparency of existing markets. Several carbon removal projects and fintechs are already building on the 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 potential for fraud, and even guarantee the offset is actually removing carbon for the long term”.

Ripple is partnered with field-leading carbon removal companies and carbon market makers. These include CarbonCure Technologies, whose suite of technologies permanently store captured CO2 in concrete through carbon mineralisation; Xange.com, a climate-focused fintech, which is building its carbon credit verification, tokenisation and exchange functionality on XRPL; and Invert, a carbon offsetting company to source and invest in high-quality carbon credit generation projects.

Robert Niven, chairman and CEO of CarbonCure Technologies said, “To address the climate crisis, we need all hands on deck. Growing the market for high-quality carbon removal and reductions like what we provide here at CarbonCure  is a key part of the solution. Ripple’s strategic investments will have a significant impact on advancing carbon removal innovations, improving carbon credit delivery and growing global carbon market tools and solutions. We applaud Ripple’s leadership in ensuring transparency and verification in this rapidly expanding field”.

Steven Witte, COO and co-founder of Xange.com said, “As efforts to decarbonise the global economy increase, demand for carbon credits will only increase. The industry needs to evolve its existing infrastructure and verification methodologies to address our climate needs".

“Xange.com offers market infrastructure solutions that facilitate the development of ecological projects, the measurement of ecological benefits and the registration of corresponding carbon credits. To achieve this, Xange.com chose the XRP Ledger, given its performance, scalability and inherently green attributes, to build its carbon credit verification, tokenisation and exchange functionality,” he said.

In addition, Ripple is working alongside key climate players, including Energy Web Foundation, Rocky Mountain Institute and the Alliance for Innovative Regulation. Ripple co-founded the Crypto Climate Accord, which has enlisted over 500 members spanning the crypto and finance, technology, NGO, and energy and climate sectors, since launching in April 2021. Ripple is a founding member of the World Economic Forum’s Crypto Impact and Sustainability Accelerator (CISA).

Re-disseminated by The Asian Banker

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