Blockchain company, Ripple has announced an investment of $100 million to fight climate change by speeding up the modernization of the carbon credit market.
Announcing the investment, the company’s CEO, Brad Garlinghouse said that carbon markets allow companies and individuals to trade carbon credits for offsetting CO2 emissions that some companies cannot eliminate.
He noted that Ripple will also invest in new functionality that enables the tokenization of carbon credits, adding that blockchain companies can play “a catalytic role” in improving carbon markets.
In October 2021, Garlinghouse was quoted as saying that a single Bitcoin transaction consumed 75 gallons of gasoline, to highlight the wastefulness of mining, adding that the Ripple-backed XRP cryptocurrency is being pitched as an energy-efficient alternative.
A recent study had also shown that combining crypto trades with carbon offsets could help dramatically reduce the environmental impact of the largest cryptocurrency. Due to looming regulations, Bitcoin miners have started focusing on achieving carbon neutrality.
Story was adapted from the Cryptonomist