With tech giants like Google and Facebook announcing plans to become carbon-free companies by 2030, small businesses are doing the same. The only difference is that innovative startups take smart approaches that aim to be more efficient than those of large, centralized firms.
For example, Ripple – a fintech company that allows banks, payment providers, and digital asset exchanges to send money using the blockchain – has pledged to reduce carbon emissions by 2030. To achieve this goal, Ripple has introduced a number of initiatives, primarily using blockchain. Technique.
Ken Weber, Ripple’s head of social performance, told Cointelegraph that Ripple is focusing on reducing carbon emissions through making sustainable choices, purchasing carbon offsets and investing in decarbonization technologies. One of the first initiatives Ripple pledged was to partner with the Energy Web Foundation, a non-profit organization that uses blockchain to accelerate low-carbon electricity systems. The Energy Web Foundation and Ripple have created “Energy Web Zero,” a new open source tool designed to de-carbonize any blockchain network by purchasing “token” renewable resources.
Energy symbol attribute certificates
Weber said Energy Web Zero will allow Ripple to buy renewable energy in the US, UK and the Philippines. This will be done through Token Attribute Certificates, or EACs, which serve as evidence of the company’s acquisition of renewable energy.
Jesse Morris, web director for the Energy Web Foundation, told Cointelegraph that the Energy Web Zero app identifies digital identities for real assets such as major wind and solar farms around the world. When these assets are associated with a digital ID, this data is anchored to the Energy Web blockchain, which manages the Energy Web Zero application. Then certificates of digital energy attributes are generated from this data to represent renewable energy.
Morris shared that Ripple and the XRP Ledger Foundation, an independent not-for-profit organization, will be the first two organizations to use Energy Web Zero to secure the purchase of consumption refunds at the XRP Ledger. “We are using the blockchain to solve our own problems,” Morris said.
The benefits of blockchain to achieve carbon neutrality
Interestingly, the blockchain used to achieve carbon neutrality makes a lot of sense due to the transparency built into the technology. Companies like Google may claim to be removing their carbon footprint by buying high-quality compensation, but they don’t disclose how much of the change.
There will always be evidence of the public blockchain doing the transactions. According to Morris, the power grid is an open source architecture, which means that anyone can download a client and start interacting with it or looking for transactions: “Open source platforms are essential to openness and trust, and that makes a big difference.” …
Additionally, the open source platform allows the entire blockchain ecosystem to use the Energy Web Zero app to de-carbonize it. Morris noted that this is the goal as the app is designed to encourage other blockchain ecosystems to begin carbonization:
Companies like Google and Facebook have great sustainability goals and can make decisions about how to achieve them, but due to the decentralized nature of blockchain communities, we can’t. Hence, the use of EAC tokens on the blockchain network is a powerful way to create a decentralized ecosystem for purchasing renewable energy to offset energy consumption. ”
Efficient coding and blockchain?
While this concept makes sense and is implemented even by companies outside the blockchain realm, certifying symbolic energy attributes and placing them on the blockchain network can be difficult due to vague rules and a lack of industry standards.
Cameron Brill, a climate market advocate and vice chair of the Sustainability Working Group at the InterWork Alliance, a non-profit group that aims to create global standards for token ecosystems, told Cointelegraph that understanding whether a token is effective depends on whether the assets are tied. … to actual, reliable and standardized carbon credits. Additionally, Brill noted that these token loans should also provide better liquidity and rates than standard carbon credit instruments.