Ripple has made a commitment of $100 million (£79.4m) to scale and strengthen global carbon markets using blockchain and crypto.
The investment is expected to accelerate the removal of carbon and help modernise carbon markets through investments in innovative carbon removal companies and climate-focused fintechs.
The company also plans to build a portfolio of 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.
Ripple believes 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.
It adds 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.
In 2020, the company announced plans to go carbon-neutral by 2030 and suggests it is on track to achieve it by 2028.
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.”