The investment targets cutting US carbon emissions by more than 1.5 million tons over the next 35 years.
Ripple has partnered with Nelnet Renewable Energy, a business unit of renowned conglomerate Nelnet, in an ESG deal. A press release disclosed this news on October 11, noting the two firms have entered into a joint investment that will see them inject $44 million (£32.32 million) in one of Nelnet’s solar energy investment funds. Reportedly, Ripple contributed the bulk of the funds.
According to an official press release, Ripple funded the majority of the latest joint investment. The joint investment will fund solar energy projects throughout the U.S. in support of the transition to a cleaner and more stable energy future.
In the recent announcement, Nelnet mentioned that the solar projects financed by the Ripple Nelnet Renewable Energy Fund are estimated to offset over 1.5 million tons of carbon dioxide over 35 years. Ripple is part of the crypto climate accord. Ripple formed several partnerships in 2021 to facilitate a carbon-neutral future for global finance. Last year, the blockchain company collaborated with Energy Web and the Rocky Mountain Institute to decarbonize the XRP Ledger. Crypto mining has been a hot topic of discussion inside and outside of the crypto community because of its environmental impact. Many have advocated the use of clean energy for cryptocurrency mining.
“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,” said Ken Weber, Head of Social Impact at Ripple. “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.”
The collaboration between Ripple and Nelnet is part of Ripple’s latest efforts at sustaining carbon neutrality for global finance. Ripple is a member of the Crypto Climate Accord, a private sector-led initiative that’s set to decarbonize cryptocurrencies and turn the entire crypto industry 100% renewable by 2030. Ripple also has concurrent partnerships with Energy Web and the Rocky Mountain Institute to decarbonize the XRP Ledger, setting the pace for the industry as the first global blockchain to enter such a partnership.
“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 U.S.,” said Scott Gubbels, Executive Director of Nelnet Renewable Energy. “Investments like these help create jobs, provide cost-competitive energy to the market, and promote sustainability for years to come.”