Major blockchain companies join the Crypto Climate Accord

Hottest New Crypto Listing On Major Exchanges
Hottest New Crypto Listing On Major Exchanges

Major blockchain companies join the Crypto Climate Accord

By Alice Leetham - min read
Image of a Bitcoin next to a plant

The accord is focused on decarbonising the crypto industry and aims to make blockchain 100% green by 2025.

Environmental impact has been a sticking point for many when it comes to cryptocurrency adoption. In fact, research from the University of Cambridge estimates that Bitcoin alone consumes almost 140 TWh of electricity annually, which is more than the countries of Sweden or Ukraine.

Crypto doesn’t have to be bad for the environment though, and many people and companies in the sector are already exploring ways to reduce their carbon footprint. This is why the Crypto Climate Accord was formed.

The Crypto Climate Accord was unveiled yesterday and was founded by Energy Web, RMI, and the Alliance for Innovative Regulation. It already has the support of more than 20 companies and individuals, including ConsenSys, Ripple, CoinShares, Exaion, and Hut 8 Mining.

The accord is a private sector-led initiative inspired by the Paris Climate Agreement that is focused on decarbonising the cryptocurrency industry. The group said, “Our collective ambition will create wins for both the planet and the global economy. The accord will catalyse one of the fastest industry-wide decarbonisation efforts ever.”

The Crypto Climate Accord will not mark individual tokens as green, as it wants cryptocurrencies to remain fungible. Instead, it will find a long-term solution that ensures all blockchains are green. For some, this means investing in more energy-efficient consensus mechanisms like proof of stake.

For blockchains which stick with proof of work, the accord will accelerate green mining by anonymously measuring and reporting how much of the network is powered by renewables. To this end, the accord will support the development of open source software which can be installed by crypto producers, renewable energy companies, and grid operators, to prove the origin of electricity used. Miners will then be able to verifiably claim they are contributing to decarbonisation and build stronger relationships with policymakers.

The accord also intends to act as a coordinating framework to enable corporate, institutional, and retail investors to decarbonise their crypto holdings by purchasing renewables. These transactions can then be linked to specific renewable energy projects through open source technologies to verify their impact on decarbonising the industry.

The Crypto Climate Accord aims to enable all blockchains to be powered by 100% renewables by 2025 and to achieve net zero emissions for the entire industry by 2040, including retroactive emissions and business operations beyond blockchains.