Thus, as part of the cooperation, the partners will create a $44 million fund to finance Nelnet Renewable Energy projects; in the field of solar energy in the United States. Moreover, most of the capital will be allocated by Ripple.
According to the press release, the projects supported by the fund will compensate for more than 1.5 million tons of carbon dioxide over 35 years. This is equivalent to CO2 emissions from the consumption of approximately 583 million liters of gasoline.
A more sustainable world
“Guaranteeing an environmentally friendly energy future is one of the top priorities for every industry. Not only to stimulate economic growth, but also to ensure a more sustainable world. As the adoption of cryptocurrencies and blockchain continues to grow. It is obvious that the technology will underpin our future financial systems,” said Ken Weber, Ripple’s head of social impact.
The partnership will help the company fulfill its obligations to reduce the carbon footprint of the financial services sector, he added.
Earlier, Ripple joined the Crypto Climate Accord (CCA) initiative aimed at decarbonizing the crypto industry; and its full transition to renewable energy by 2030. In 2020, the fintech company began working with Energy Web and Rocky Mountain Institute (RMI) to reduce the carbon emissions of the XRP Ledger network to zero.
The impact of mining
In addition, discussions regarding the impact of mining the first cryptocurrency on the environment escalated after Tesla‘s decision to suspend sales of electric cars for the first cryptocurrency in May. The company referred to carbon emissions from mining.
Elon Musk has also repeatedly spoken out on this topic. According to the survey, his tweets about the harm of Bitcoin mining to the environment; negatively influenced the opinion of investors.