Ripple has announced it has committed $100 million in funding towards blockchain innovation meant to scale carbon removal.

The funding will be used to fund companies operating in carbon markets. Ripple also stated that the funds are earmarked for climate-focused fintech startups.

According to the press release, the funds will also go into Ripple’s portfolio of programs targeted at helping it become net zero by 2030. Ripple will also use the funds for support of efforts in carbon credit tokenization (NFTs).

This, according to the company, will take place on the XRP Ledger, (XRPL), and blockchain technology will help ensure that carbon credit NFTs are authentic.

A ‘call for action’ regarding climate change

Brad Garlinghouse (CEO of Ripple) stated that funding was the company’s “direct reaction to the global call for action ” regarding climate change. As part of the global response to reducing emissions, companies are being encouraged and supported to use resources and even their talent.

“While reducing emissions and transitioning to a low-carbon future are paramount, carbon markets are also an important tool for meeting climate goals. Blockchain and crypto can play a catalytic role in allowing carbon markets to reach their full potential, bringing more liquidity and traceability to a fragmented, complex market,” Garlinghouse added.

Today, @Ripple is committing to invest $100M to modernize carbon markets globally, through investing in carbon removal companies and supporting growth in carbon credit tokenization functionality (Hear me out, NFTs aren’t just about digital art…) https://t.co/MYrxEO6WfN

— Brad Garlinghouse (@bgarlinghouse) May 19, 2022

According to the Ripple chief, the $100 million commitment is one more step towards ensuring rising global temperatures are limited below 1.5 degrees Celsius.

Ripple has partnered several companies in the carbon markets to achieve its goals. These include CarbonCure Technologies, UN-backed tokenization startup Xange.com, and Invert, a carbon offsetting company.

The company also collaborates with Energy Web Foundation and the Alliance for Innovative Regulation.