XRP Ledger blockchain energizes decarbonization, but tokenization a challenge

One of the first initiatives that Ripple has committed to is a partnership with the Energy Web Foundation, a nonprofit organization using 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 enable any blockchain network to decarbonize by purchasing "Tokenized" renewable energy.

According to Weber, Energy Web Zero will enable Ripple to purchase renewable energy within the United States, the United Kingdom and the Philippines.

Jesse Morris, the Energy Web Foundation's chief commercial officer, told Cointelegraph that the Energy Web Zero application establishes digital identities for real-world assets such as large-scale wind and solar facilities around the world.

Once these assets are tied to a digital identity, that data is anchored to the Energy Web blockchain, which powers the Energy Web Zero application.

Digital energy attribute certificates are then produced from this data to represent renewable energy.

Morris shared that Ripple and the XRP Ledger Foundation, an independent nonprofit entity, will be the first organizations to use Energy Web Zero to ensure offsets are purchased for consumption on the XRP Ledger.

An open-source framework allows for the entire blockchain ecosystem to take advantage of the Energy Web Zero application for decarbonization.

"Companies like Google and Facebook have impressive sustainability targets and can make decisions on how to achieve their goals, but given the decentralized nature of blockchain communities, we can't do that. Therefore, using tokenized EACs across a blockchain network is a powerful way to get a decentralized ecosystem to purchase renewables to offset energy consumption."Tokenization and blockchain effectiveness?

Although the concept makes sense - and has even been implemented by companies outside the blockchain space - tokenizing energy attribute certificates and putting them on a blockchain network may be challenging due to unclear regulations and a lack of industry standards.