Ripple announced a partnership with Nelnet’s financial services division to reduce the carbon emissions of the cryptocurrency industry.
Under the partnership, they will create a $44 million fund to finance Nelnet Renewable Energy projects in solar energy in the United States. Ripple will provide the majority of the capital.
According to the press release, the fund-supported projects over 35 years will offset more than 1.5 million tonnes of carbon dioxide. This is equivalent to the emissions from consuming about 583 million litres of gasoline.
“Ensuring a clean energy future is one of the top priorities for every industry, not only to drive economic growth but also to ensure a more sustainable world. As adoption of cryptocurrencies and blockchain continues to grow, it is clear that the technology will underpin our future financial systems,” said Ken Weber, head of Ripple’s social impact division.
The partnership will help the company meet its commitments to reducing the carbon footprint of the financial services sector, he added.
Earlier, Ripple joined the Crypto Climate Accord initiative aimed at decarbonising the crypto industry and its full transition to renewable energy by 2030.
In 2020, the fintech company began collaborating with Energy Web and the Rocky Mountain Institute to bring the carbon emissions of the XRP Ledger to zero.
Earlier this year, Ripple CEO Brad Garlinghouse criticised Bitcoin and Ethereum for energy-inefficient mining.
Discussions about the environmental impact of mining intensified after Tesla suspended the sale of electric cars for Bitcoin, the first cryptocurrency, in May. The company cited the carbon emissions from mining.
Elon Musk has repeatedly spoken on this topic and, according to survey data, his tweets about the environmental harm of Bitcoin mining have negatively affected investors’ views.
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