Bitcoin Mining Hits Record High in Sustainable Energy Usage, Leads Industry in Emission Reduction
Summary:
The Bitcoin ESG Forecast reports a record 54.5% of Bitcoin mining now utilizing sustainable energy. Analyzing data from the BEEST model, the study confirms Bitcoin as the highest user of renewable energy across industries. Also, off-grid Bitcoin miners are harnessing vented methane to power operations, leading to a 7.3% reduction of emissions without offsets. After mining bans in China and Kazakhstan, miners predominantly switched to greener alternatives in North America and sustainable off-grid locations.
A recent report from the Bitcoin ESG Forecast has disclosed an all-time high in sustainable energy usage for Bitcoin mining, reaching 54.5%. The data also showed that sustainability in mining has seen an increase of 3.6% for 2023. The forecast analyzed data from the BEEST model, comparing Bitcoin's use of sustainable energy with other industries over a four-year period using accessible public information.
The gathered data demonstrates that Bitcoin mining stands as the leading entity in the utilization of green energy, at 54.5%, compared to all other subsectors. Additionally, the Bitcoin mining industry has exhibited a continuous overall increase in sustainable practices.
The report revealed that Bitcoin miners operating off-grid make use of methane emissions. The research specifies that smaller oil manufacturers in both the U.S. and Canada obtain permits to flare natural gas, and some release methane directly, which is more challenging to trace. However, reducing environmental damage, certain mining companies employ this vented methane to create electricity for Bitcoin mining.
This adaptation implies that the Bitcoin network now counteracts 7.3% of all its emissions without relying on offsets, marking a new record and positioning it as the leading industry in non-offset-related emission reduction.
According to the report, the expansion in off-the-grid renewable mining activities, demonstrated by Tether's growth into hydro mining in Latin America and the identification of further methane-reducing mining, signifies that the Bitcoin network is utilizing more green energy than ever before.
Since the ban on mining activities in China and the unofficial ban in Kazakhstan, miners have mainly shifted to North American greener grids or sustainable off-grid locations. The published report affirms that global grids are becoming more sustainable at a rate of 0.7% annually. This translates into a 29% enhancement in emission intensity for on-grid Bitcoin miners from 2021 onwards.
Published At
1/18/2024 3:45:55 PM
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