Blockchain payments company Ripple has announced a $44 million Environmental, Social and Corporate Governance (ESG) joint venture with financial technology provider Nelnet Renewable Energy to fund the implementation of green solar energy initiatives in the United States.
According to the announcement, the new fund is expected to offset more than 1.5 million tons of carbon dioxide over 35 years, corresponding to the energy consumption of 180,635 homes annually.
In March 2021, Nelnet Inc. On the commendable E1 ESG accreditation from S&P Global Ratings’ Solar Equity Tax Fund Evaluation Board for $9.9 million. The project provides financial support for the construction of four solar panels in New York State.
The assessment was conducted on three environmental priority criteria: transparency, management and constraints, with the project receiving 88, 86 and 80 points out of 100 possible points, respectively.
Ken Webber, Head of Social Performance at Ripple, spoke about an environmental precedent that a partnership with Nelnet could create in the broader market:
“We are pleased to partner with Nelnet as we deliver on our commitment to reduce the carbon footprint of financial services around the world and deliver on our promise that the cryptocurrency industry is carbon neutral.”
In October 2020, Weber told Cointelegraph that Ripple cares about the environment by purchasing carbon offsets and choosing green products and services, as well as investing in decarbonization technologies. Around the same time, the company is also mapping out plans to reduce carbon emissions by 2030.
On the topic: Ripple launched a $250 million fund for NFT Creators
In April 2021, Ripple joined the Crypto Climate Accord – an initiative inspired by the values of the Paris Climate Agreement – which brought together a consortium of 20 companies from the crypto, finance, technology and energy sectors to work together to achieve transformation goals for all blocks. Make full use of renewable energy sources by 2025, as well as make the crypto-neutral zone by 2040.
To better understand the importance of sustainability measures in this sector, Cointelegraph spoke with Peter Zou, chief researcher at VeChain.
Zhou shared his views on crypto and blockchain companies implementing open, transparent, and accountable carbon tracking and reporting systems:
“In pursuit of our goal of a healthier planet with green technologies, we intend to demonstrate that a blockchain platform can support green businesses and be a truly resilient infrastructure on which businesses can build their smart contract solutions.”
VeChain recently released a report on the carbon emissions of the entire public blockchain VeChainThor, which states that “the total annual carbon emissions generated by VeChainThor are approximately 4.58 tons, which is about 2.4% of the carbon emissions generated by bitcoin mining.”