A group of more than 20 companies, made up of cryptocurrencies, finance, technology, energy and NGOs, have joined forces to focus on the environmental impact of cryptocurrencies.

The Crypto Climate Accord announcement today, inspired by the 1958 Paris Climate Agreement, says it addresses “the large and growing energy consumption of cryptocurrencies and blockchains, and the impact of their energy consumption on the climate.” The group, which is formed from the non-profit Energy Web Foundation, Rocky Mountain Institute, and Alliance for Innovative Regulation, is collaborating with well-known crypto firms such as blockchain-based payment company Ripple, Canadian miner Hut 8, and digital investment firm CoinShares, Ethereum. Consensys Software Corporation, among others.

“The global economy industries are beginning to decarbonize their business,” the group said. We can do the same in encryption. We have the opportunity to carbonize the industry. ”

One of the long-term goals of the Crypto Climate Agreement is to convert all global blockchains into 100% renewable energy sources according to the United Nations Framework Convention on Climate Change in 2025 and to develop an open-source accounting standard to measure emissions from the cryptocurrency industry. … the group has also set a target for the entire crypto industry to be zero carbon by 2040 – a term that indicates when anthropogenic carbon emissions can be effectively removed from the atmosphere.

Many fintech and crypto companies have publicly pledged green initiatives as the impact of digital assets on the environment becomes more apparent. Last year, Ripple announced that it intends to completely eliminate carbon emissions by 2030, in partnership with the Energy Web Foundation and investing in decarbonization technologies.

“The Crypto Climate Agreement recognizes that financial technology, including blockchain and cryptocurrency, is well positioned to lead the global financing drive to a sustainable future,” said Ripple in response to today’s launch. “Recent studies show that until 2023 are the most important years for the adoption of the cryptocurrency, and we know that the longer we wait, the more difficult it is to ‘reverse engineer’ the stability of the system.”

Bitcoin (BTC) and blockchain have both been praised for their role in transforming global finance, as well as criticizing the impact of technology on climate change. The energy required to maintain the Bitcoin network is estimated at 95.4 TWh per year, according to Digiconomists’ Bitcoin Energy Consumption Index – an amount comparable to energy consumption in Kazakhstan. Bitcoin’s annual carbon footprint – 45.34 megatons of carbon dioxide – rivals Hong Kong.

If “decarbonizing the cryptocurrency industry in record time” is the goal of the Crypto Climate Agreement, the challenges it faces will be similar to those signed in the Paris Agreement, which aims to ensure that Earth cannot warn by more than 0.5 ° C above. Preset value. Industrial level. Reports show that global carbon dioxide emissions fell 6.4% last year, when the epidemic slowed or shut down many industries. However, this figure remained low due to the 7.6% reduction, which, according to the United Nations Environment Program, was necessary to meet the figures set out in the Paris Agreement.

Source: CoinTelegraph