In a press release, Ripple, the Blockchain company of cryptocurrency, Ripple has unveiled to the public its contribution to carbon emission reduction with an investment worth of $100 million.
Why The Investment?
According to the company’s CEO, Brad Garlinghouse, the investment was Ripple’s role in the global plea to address climate change. He believes Blockchain and crypto have a leading role in ensuring the full potentials of the carbon market are met.
The latest development is in line with Ripple’s future commitment. He noted that despite the growing need for a future with reduced carbon emission, the carbon markets are equally necessary for attaining climate goals. By 2023, he hopes to keep carbon at net-zero.
The Crypto Climate Accord was co-founded in 2021 by Ripple and over 500 members are already onboard. Blockchains and crypto are expected to be transparent, verifiable and scalable and he believes if all those qualities are met, the market would enjoy growth and desired results.
Ripple have already partnered with climate-conscious fintechs to create a carbon free market. As noted by Steven Witte, “The industry needs to evolve its existing infrastructure and verification methodologies to address our climate needs.”
Crypto’s Role in Carbon Emission
Bitcoin remains the world’s leading cryptocurrency and is often used as the standard in discussing crypto-related issues. Cryptocurrencies have been accused of being major contributors to the growing global issue of carbon emission. The effect of mining pace setter cryptos, such as Bitcoins, is rather alarming.
In ranking the level of damage, Bitcoin consumed as much power as Argentina. That is according to a sustainability think tank called Thinkthrough Consulting. In 2020, it took 131.80 terrawatt-hours of power to execute the necessary algorithsms needed for mining.
Estimated yearly carbon emission of 22-22.9 million metric tons is almost as much as Jordan and Sri Lanka’s. Crypto companies have resolved to lessen their impact on climate change. Rather than employ a “proof of work” technology, the new plan is a “proof of stake”. Cardano and Ripple are considered as being eco-friendly tokens.