Ripple, the cryptocurrency’s Blockchain firm, announced its $100 million investment in carbon emission reduction in a press statement.
Why is Ripple investing so much?
The investment represented Ripple’s involvement in the worldwide plea to address climate change, according to the company’s CEO, Brad Garlinghouse. He believes that blockchain and cryptocurrency will play a key role in realizing the full potential of the carbon market.
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.
Ripple co-founded the Crypto Climate Accord in 2021, and it now has over 500 members. Blockchains and crypto are expected to be transparent, verifiable, and scalable. Also, he believes that the industry will grow and achieve the desired outcomes if these three attributes are realized.
Ripple has already formed partnerships with environmentally-minded fintechs to establish a carbon-free market. According to Steven Witte, “The industry needs to evolve its existing infrastructure and verification methodologies to address our climate needs.”
The Impact of Crypto on Carbon Emissions
Bitcoin is still the most popular cryptocurrency in the world and often referenced while addressing crypto-related issues. Meanwhile, Cryptocurrencies are accused of being a major contributor to the global issue of carbon emissions. The impact of mining leading cryptos like Bitcoins is quite disturbing.
Bitcoin consumes as much electricity as Argentina in terms of damage. That is according to Think through Consulting, a sustainability think tank. In 2020, it took 131.80 terawatt-hours of energy to run the necessary mining algorithms.
Carbon emissions of 22-22.9 million metric tons per year are approximately equal to Jordan and Sri Lanka. Crypto firms have pledged to reduce their carbon footprint. The new strategy uses “proof of stake” technology instead of “proof of work. However, Cardano and Ripple are regarded as eco-friendly tokens.