Wall Street's Major Role in Bitcoin Mining Carbon Emissions Revealed by Greenpeace
Summary:
Greenpeace USA's recent report suggests that Wall Street firms contribute significantly to the environmental damage caused by Bitcoin mining by providing the industry with financial incentives. The report cites Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual as the primary financiers of carbon emissions from Bitcoin mining. Greenpeace advocates for these companies to disclose the climate risks associated with their support for Bitcoin mining. The NGO criticizes the lack of transparency in the industry and calls for increased regulation, including the proposed Digital Asset Mining Energy tax. Additionally, Greenpeace controversially suggests Bitcoin transition from a proof-of-work to a proof-of-stake consensus protocol, similar to Ethereum.
Greenpeace USA has put the spotlight on powerful Wall Street entities in a recent report, claiming they are significantly contributing to the damaging environmental impact caused by Bitcoin mining. This new stand broadens the NGO's usual focus on miners alone, alleging that major financial institutions instead encourage the ecologically damaging practice through financial incentives. The report identifies Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual as the biggest financiers behind Bitcoin mining companies' pollution, attributing nearly 1.7 million metric tons of CO2 emissions in 2022, equivalent to 335,000 American homes' electricity in a year.
The organization explains that Bitcoin mining has expanded into a substantial commercial industry needing substantial capital for buying computers and establishing facilities. Wall Street and the banking sector have allegedly responded enthusiastically to miners' calls for support. Greenpeace calls for accountability from entities, such as BlackRock, that facilitate the mining industry, highlighting the responsibility they have in reporting risks to their shareholders and clients.
Greenpeace objects to the lack of transparency in the industry, making it difficult for authorities to enforce green regulations. The NGO also takes issue with the financial companies' profiting from Bitcoin mining while maintaining green or sustainability goals.
The U.S. state of Texas, which has become a global hub for Bitcoin miners, especially those who left China after its pseudo-ban, is flagged by Greenpeace as a significant contributor to climate change. The report points to Vanguard, BlackRock, Morgan Stanley, and State Street as the primary financiers behind the pollution-intensive Riot facility.
The organization criticizes BlackRock for its hypocrisy, given that it is a member of the Net Zero Asset Managers initiative even as it is one of the primary financiers of Bitcoin mining. Greenpeace alleges that asset managers and loans from MassMutual and M&T Bank are contributing to the CO2 emissions. Moreover, Greenpeace faults Bitcoin miners for misleading public opinion with false green claims.
It calls for regulation and taxation of Bitcoin miners and is supportive of President Biden's proposal of the Digital Asset Mining Energy tax. However, some believe it may harm the U.S crypto mining industry.
Additionally, Greenpeace urges Bitcoin to change its consensus protocol from proof-of-work to proof-of-stake, similar to Ethereum. That controversial suggestion has been met with substantial opposition from the Bitcoin community, which views it as a threat to Bitcoin’s decentralized nature.
Published At
6/14/2024 12:00:00 PM
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