Ripple and Nelnet announce $44m ESG fund
Ripple’s aim is to help build a carbon-neutral future for global finance.
The provider of blockchain and cryptocurrency solutions, Ripple and fintech provider Nelnet Renewable Energy have announced a $44m (£32m) environmental, social and corporate governance (ESG) joint investment into one of Nelnet’s solar energy investment funds.
The joint investment, with the majority of funding coming from Ripple, will fund solar energy projects throughout the US in “support of the transition to a cleaner and more stable energy future”.
The solar projects financed by the Ripple Nelnet Renewable Energy Fund is estimated to offset over 1.5 million tons of carbon dioxide (CO2) over 35 years. That is equivalent to the volume of CO2 emissions created by the consumption of 154 million gallons of gasoline.
The news comes as the US Department of Energy’s Solar Futures Study has predicted that 45% of all energy in the US could be produced by solar power by 2050.
Ripple is part of the Crypto Climate Accord
Ripple is part of the Crypto Climate Accord, which is a private sector-led initiative focused on decarbonising cryptocurrencies and making the crypto industry 100% renewable by 2030.
The partnership between Ripple and Nelnet is part of Ripple’s aim to help build a carbon-neutral future for global finance.
Last year, Ripple also partnered with Energy Web, a global non-profit organisation attempting to accelerate achieving a low-carbon, customer-centric electricity system and Rocky Mountain Institute, an organisation in the US dedicated to research in the field of sustainability to decarbonise the XRP Ledger. Additionally, Ripple has made the commitment to become carbon net-zero by 2030 or sooner by reducing emissions and investing in carbon removal projects such as reforestation, biochar and carbon sequestration.
“A carbon-negative cryptocurrency industry”
Ken Weber, head of social impact at Ripple, said: “Guaranteeing a clean energy future is a major priority across every industry, not only to drive future economic growth but also to ensure a more sustainable world. As the adoption of cryptocurrencies and blockchain continues to grow, it’s evident that the technology will underpin our future financial systems. We’re excited to work with Nelnet as we pursue our commitment to reduce the carbon footprint of financial services globally and to deliver on the promise of a carbon-negative cryptocurrency industry.”
Scott Gubbels, executive director of Nelnet Renewable Energy, said: “We are thrilled to have a best-in-class investor platform that enables us to work with investors like Ripple to further our effort toward advancing clean energy generation within the US. Investments like these help create jobs, provide cost-competitive energy to the market, and promote sustainability for years to come.”