Here’s everything you need to know about the Crypto Climate Accord – the push to make cryptocurrencies 100% green

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The non-profit Crypto Climate Accord (CCA) aims to eliminate carbon emissions from the crypto industry by 2030. More than 45 companies and individuals have signed up to the agreement so far. Countries and large corporations have cited crypto’s energy needs as a major concern to bring cryptocurrencies into the mainstream. Bitcoin propagators argue that the carbon emissions of cryptocurrencies are nothing compared to the value they provide. However, their impact on climate change – big or small – is used as a rationale by different countries, the economy, the World Bank and others to deter people from using digital money. And, the Climate Change Agreement (CCA) wants to avoid negative press at the pass. Bitcoin’s annual greenhouse gas emissions compared to other sources Hass McCook / Bitcoin Magazine via Nasdaq The CCA, announced in April this year, aims to limit the pages of history that will talk about the detrimental environmental impact of cryptocurrencies. Led by private sector players, the consortium wants to switch all blockchains to renewable energies by 2030, if not earlier.

And, by 2040, he wants the crypto industry to achieve “net zero” – or carbon neutral, emissions. This means that the greenhouse gases that continue to be emitted into the atmosphere will be offset by technology that also removes these gases.

CryptocurrencyTotal annualized carbon footprintCompared to countries’ annual carbon footprintBitcoin62.94 million tonnes of carbon dioxideSerbia and MontenegroEthereum25.32 million carbon dioxideBosnia and HerzegovinaSource: Diginomist

If achieved, these ambitious goals could solve a very real problem that could also spur other industries to step on the pedal.

The Accord, modeled after the Paris Climate Agreement, is a private sector-led initiative for the entire crypto community focused on decarbonizing the cryptocurrency industry in one step record.”

Definition of climate change agreements according to its creators – the Rocky Mountain Institute, the Energy Web Foundation and the Alliance for Innovative Regulation

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What is the Crypto Climate Agreement?

Inspired by the 2015 Paris Agreement, the CCA aims to decarbonise the crypto industry.

The initiative is led by three nonprofits: the Rocky Mountain Institute, the Energy Web Foundation and the Alliance for Innovative Regulation. The first two are nonprofits focused on sustainability and the transition to low carbon footprints, while the Alliance for Innovative Regulation is an international advocacy group that advocates for the implementation of fair financial systems.

Why do we need CCA? Climate concerns have not only been cited by countries, they have also been cited by crypto enthusiasts and billionaires looking to fund the industry. Tesla’s Elon Musk, for example, has flip-flopped on his company’s plans to deal with crypto due to concerns about climate change.

He recently teamed up with Twitter’s Jack Dorsey to sponsor a report that wanted to show how Bitcoin can be part of renewable energy projects.

On the other hand, countries like China have cited environmental concerns as one of the main reasons for their crackdown on the industry. A project from the University of Cambridge reported that mining Bitcoin alone can consume around 112.57 terawatt hours of energy per year, more than the total energy needs of some countries.

Even countries like El Salvador, which became the first nation-state to legalize Bitcoin earlier this month, said it was looking to find clean energy sources for Bitcoin mining indoors. of its borders – with volcanoes. What could possibly go wrong? While the CCA is sure to be a boon to the crypto industry, critics wonder if digital token mining would be the best use of renewable energy. Ultimately, the same energy could be used to power homes, schools, and hospitals. The US Energy Information Administration (EIA) forecasts global energy consumption of nearly 50% by 2050, driven by the growth of AsiaEIA / International Energy Outlook 2019. There is also a risk. Right now, Bitcoin’s hash rate is dropping and it is expected that “mining difficulties” will become easier, resulting in lower power consumption. However, if cryptocurrencies experience a boom due to the use of renewable energy and more people invest in mining, the underlying difficulty will increase again.

An increase would mean more energy consumption. And that would bring everyone back to square one – using fossil fuels to meet growing demand.

The expected net electricity generation by 2050 barely matches the expected increase in energy demand
EIA / International Energy Outlook 2019 The crypto industry has no choice but to support CCAN. Anyone remotely engaged in the tech industry can afford to ignore climate change today. According to a study published in the scientific journal Science this month, data centers accounted for 1% of global electricity consumption last year, and that figure more than quintupled between 2010 and 2018. Crypto mines are , in essence, determined data centers.

“We recognize that crypto uses a lot of energy, so let’s make it 100% green,” Jesse Morris, Chief Commercial Officer of Energy Web, told Al Jazeera. To this end, Energy Web has launched an open source software solution called Green Hashrate which will track and verify green mining of Bitcoin.

But not-for-profit organizations are not alone in recognizing the benefits and needs of CCA. For example, UK-based global cryptocurrency mining firm Argo Blockchain as well as crypto and blockchain firm DMG Solutions announced their partnership with CCA last month. Zumo, a company that makes B2B products for crypto companies, also signed the agreements.

“I am proud to support the Crypto Climate Accord and to collaborate with other like-minded players who believe this technology can lead to a renewable energy revolution through collective action,” told NSR Energy Meltem Demirors, CSO of digital asset investment firm CoinShares. earlier.

According to the CCA website, more than 45 companies and individuals from the crypto industry and related industries have joined the agreement as supporters. It is also supported by the United Nations Framework Convention on Climate Change (UNFCCC). For a more in-depth discussion, head over to Business Insider Cryptosphere – a forum where users can delve into all things crypto, engage in interesting discussions, and stay ahead of the game.

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