Ripple and Nelnet launch a $ 44 million fund for the carbon negative crypto industry

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Blockchain payments company Ripple has announced a $ 44 million environmental, social, and governance (ESG) joint venture partnership with fintech provider Nelnet Renewable Energy to fund the launch of green solar energy initiatives in the United States.

According to the announcement, the new fund will offset over 1.5 million tons of carbon dioxide over a 35-year period, equivalent to the energy consumption of 180,635 households per year.

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In March 2021, Nelnet Inc. received commendable E1 ESG accreditation from the S&P Global Ratings Evaluation Board for Nelnet’s $ 9.9 million solar tax equity fund. The project includes financial support for the construction of four photovoltaic solar projects in Upstate New York.

The evaluation was assessed against three parameters of the environmental priorities: transparency, governance and mitigation, for which the project received 88, 86 and 80, respectively, out of a maximum of 100 points.

Ken Weber, Head of Social Impact at Ripple, spoke about the environmental precedent partnering with Nelnet could set in the broader market:

“We are excited to partner with Nelnet as we pursue our commitment to reducing the carbon footprint of financial services around the world and delivering on the promise of a carbon-negative cryptocurrency industry.”

In October 2020, Weber told Cointelegraph that Ripple is practicing environmental awareness by purchasing carbon offsets and choosing sustainable products and services, as well as investing in technologies to eliminate carbon. Around the same time, the company also outlined plans to achieve net-zero carbon by 2030.

Related: Ripple is launching 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 has put together a consortium of 20 crypto, finance, technology and energy companies to get behind the goals of the Conversion of all blockchains to fully renewable energies by 2025 as well as the further development of the crypto space to net zero carbon by 2040.

To gain a better understanding of the importance of environmental sustainability measures in this sector, Cointelegraph spoke to Peter Zhou, Chief Scientist at VeChain.

Zhou shared his view on crypto and blockchain firms adopting open, transparent and accountable systems for carbon tracking and reporting:

“In pursuit of our goal of cultivating a healthier planet through green technologies, we intend to prove that a blockchain platform can support green business and be a truly sustainable infrastructure for companies to build their smart contract solutions on.”

VeChain recently released a report sharing the carbon footprint of VeChainThor’s entire public blockchain network, which summarizes that “VeChainThor’s total carbon emissions per year are about 4.58 tons, about 2.4% of CO2 emissions that are generated for the mining of a single bitcoin ”.