Alliance of major firms aims to reduce crypto's carbon footprint

Friday 09 April 2021, 6:03 AM AEST - 2 weeks ago

A group of more than 20 firms comprising crypto, finance, technology, energy, and non-government organizations has banded together to focus on the environmental impact of cryptocurrency.

In an announcement today, the Crypto Climate Accord — reportedly inspired by the 195-signatory Paris Climate Agreement — said it aims to address the "large and growing energy consumption of cryptocurrency and blockchain, and the climate impact of their energy use." Launched by nonprofits Energy Web Foundation, the Rocky Mountain Institute, and the Alliance for Innovative Regulation, the groups partners include high-profile firms in the crypto space like blockchain-based payments company Ripple, Canadian mining firm Hut 8, digital asset investment firm CoinShares, Ethereum software company Consensys, and others.

"Industries from across the global economy are beginning to decarbonize their operations," said the group. "We can do the same in crypto. We have the opportunity to decarbonize the industry."

Among the Crypto Climate Accords long-term goals are transitioning all of the worlds blockchains to be powered by 100% renewable energy by the United Nations Framework Convention on Climate Change in 2025 and developing an open-source accounting standard for measuring emissions from the cryptocurrency industry. The group has also set a target for the entire crypto industry to become carbon net-zero by 2040 — this term refers to a time when human-made carbon emissions can effectively be removed from the atmosphere.

Many fintech and crypto firms have made public pledges for greener initiatives as the environmental impact of digital assets becomes more apparent. Last year, Ripple announced it would be committing to become carbon net-zero by 2030 by partnering with the Energy Web Foundation and investing in carbon-removal technologies.

Were proud to join the @CryptoClimAcc alongside @energywebx, @UNFCCC, @AIRinnovate,

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