Cryptocurrency solutions provider Ripple, known for facilitating easier and more efficient global payments, has announced a ESG partnership with Nelnet Renewable Energy. Ripple’s ESG – Environmental, Social and Governance – investment will offer funding for solar energy projects undertaken anywhere across the U.S.
Nelnet Renewable Energy is part of Nelnet. This partnership will see an investment of $44 million to support solar projects. Ripple will be the majority fund partner in the tie-up. The collaboration aims to work toward building a stable and cleaner energy future.
Investment Aims to Reduce Environmental Impact of Financial Services
The rising prominence of cryptocurrency and blockchain technology forms the backdrop of this investment. Cryptocurrencies such as bitcoin (BTC) and Ethereum (ETH) are witnessing faster adoption globally. It is becoming increasingly clear that cryptocurrencies and blockchain applications will have an undeniable impact on future global financial systems.
The carbon footprint of the cryptocurrency industry is a growing cause of concern globally. By committing to this investment, Ripple aims to effect a decrease in carbon footprint caused by the global financial services industry.
Solar projects funded by the joint investment by Ripple and Nelnet Renewable Energy are estimated to offset a carbon dioxide footprint amounting to over 1.5 million tons, produced over 35 years. The companies state that this amount is equal to carbon dioxide emissions resulting from 154 million gallons of gasoline use.
Ripple is not new to partnerships focused on environmental protection. Ripple is already in the Crypto Climate Accord. With this partnership, Ripple aims to de-carbonize cryptocurrencies; the company also aims to transform the cryptocurrency industry into a 100% renewable energy-based industry by 2030.
Ripple was also the first major blockchain company globally to decarbonize its XRP Ledger. Ripple had partnered with Rocky Mountain Institute and Energy Web in 2020 for the purpose.
The partnership between Ripple and Nelnet Renewable Energy comes at a crucial time of growing concern of the eco-impact of cryptocurrency and blockchain. This partnership is likely to motivate more players in the cryptocurrency industry to take up more eco-initiatives.