The Crypto Climate Accord has been launched as an initiative for the crypto community to decarbonise the cryptocurrency industry.
Behind the initiative are blockchain pioneers Energy Web, the energy sector blockchain developer, one of its cofounders Rocky Mountain Institute and the fair financial system promoter Alliance for Innovative Regulation (AIR).
In the wake of increasing scrutiny of the energy intensive nature of Bitcoin, a growing number of initiatives have sprung up to ‘green’ the crypto industry, from development of a clean energy mining pool to avoiding renewables curtailment with mining as a service.
But these individual offerings are just a start and until now there has been no industrywide effort, with the Accord supported by the United Nations and more than 25 companies from the energy and other sectors.
The Accord is focussed on decarbonising the cryptocurrency industry “in record time”, it reads. While this encompasses primarily the public blockchains, one of the key objectives provisionally set is powering all the world’s blockchains with 100% renewables by the time of the 2025 COP conference (usually held near year-end).
Other objectives are to develop an open-source accounting standard for measuring emissions from the cryptocurrency industry and the entire crypto industry including all business operations beyond blockchains achieving net-zero emissions by 2040.
Doug Miller, head of global marketing at Energy Web, says the organisation anticipates in the next year dozens of novel approaches coming to market focused on decarbonising the crypto industry.
Energy Web offers its EW Zero open source blockchain application to procure renewable energies as a solution to meeting these objectives.
EW Zero was developed with the digital payment provider Ripple as a tool to decarbonise the XRP Ledger public blockchain payment network, which has become the first to achieve this status.
Miller says that EW Zero can help the crypto industry decarbonise on both the demand and supply sides. On the demand side crypto holders can directly decarbonise their crypto holdings by purchasing renewable energy equal to the non-renewable energy used to create and maintain their cryptocurrency holdings.
On the supply side crypto networks can decarbonise from the bottom-up with tracking and verification of the renewables powering the production.
Miller adds that these use cases available on EW Zero today are expected to be supplemented with a whole new category of ‘negative emissions’ products. Here, instead of purchasing renewable energy, cryptocurrency holders invest in different negative emissions projects from around the world to remove and lock away carbon associated with their crypto holdings.