Ripple Commits $100 Million To Tackle Climate Change

Ripple, a blockchain firm, has announced a $100 million commitment to climate change mitigation. The funds will aid in the upgrading of the carbon credit market.

Ripple’s team revealed on Twitter that the firm plans to invest $100 million in carbon markets. The funding will be used to modernize and scale carbon markets, as well as to speed up the provision of “new, permanent, high-quality carbon removal.”

Today, we’re committing $100M to invest in carbon markets.?

We’re excited to accelerate progress toward global climate goals by investing in high-quality, scalable carbon removal & deploying blockchain to power more transparent & dynamic carbon markets.https://t.co/MdcpOh5fco

— Ripple (@Ripple) May 19, 2022

Carbon markets allow businesses and individuals to trade carbon credits in order to offset CO2 emissions that some companies cannot prevent. Ripple also says it will invest in a new feature that allows carbon credits to be tokenized.

According to CEO Brad Garlinghouse, the blockchain firm can play a “catalytic role” in improving carbon markets. Garlinghouse said in October that a single Bitcoin transaction used 75 liters of fuel, emphasizing the wastefulness of mining. The Ripple-backed XRP cryptocurrency is being marketed as a low-energy option.

According to a new study, mixing crypto trading with carbon offsets might significantly lower the largest cryptocurrency’s environmental impact. As a result of impending regulation, Bitcoin miners have begun to focus on reaching carbon neutrality.

Greenpeace USA and Chris Larsen, one of Ripple’s co-founders, recently launched a campaign against Bitcoin’s proof-of-work consensus mechanism. Bitcoin developers, according to Larsen, could move to proof-of-stake in order to drastically cut the flagship cryptocurrency’s energy consumption.

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