Greenpeace USA has spotlighted major Wall Street firms like BlackRock and Vanguard for their role in the environmental impact of Bitcoin mining. According to Greenpeace, these financial giants are funding an industry notorious for its high carbon emissions, making them significant contributors to climate change.
Bitcoin Mining and Environmental Impact
In its report, “Bankrolling Bitcoin Pollution: How Big Finance Supports a New Climate Threat,” Greenpeace shifts the blame from Bitcoin miners to the financial institutions backing them. By offering financial incentives, these companies perpetuate the ecological damage caused by Bitcoin mining.
Top Financial Backers Identified
Greenpeace identifies Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual as the top financiers, collectively responsible for over 1.7 million metric tons of CO2 in 2022. This is equivalent to the emissions from more than 335,000 American homes.
Growth of Bitcoin Mining
Bitcoin mining has grown significantly, requiring large amounts of capital for infrastructure and equipment. This growth is supported by banks and asset managers seeking profits from the booming industry.
Lack of Transparency and Accountability
“Banks and asset managers have a duty to disclose risks to their shareholders and clients who are currently missing vital information on the climate risks from Bitcoin,” Greenpeace states. They criticize the lack of transparency and accountability, which hinders informed decision-making about green policies.
Hypocrisy of Financial Institutions
Greenpeace condemns the hypocrisy of banks that promote sustainability while financing Bitcoin mining. They call for financial companies to disclose the emissions linked to their Bitcoin mining investments.
Bitcoin Mining in Texas
Texas has become a central hub for Bitcoin mining in the U.S., especially after China’s mining ban. Greenpeace highlights Riot Platforms’ facility near Rockdale as a major emitter, with financiers including Vanguard, BlackRock, Morgan Stanley, and State Street. The Riot facility alone is responsible for 526,000 metric tons of CO2 annually, equivalent to the emissions from 100,000 U.S. homes.
Contradictions in Sustainable Investment
Despite being a signatory to the Net Zero Asset Managers initiative, aiming for net-zero emissions by 2050, BlackRock ranks third among the 540 financial institutions in Greenpeace’s study for carbon emissions from Bitcoin mining investments.
Greenwashing Accusations
Greenpeace accuses the Bitcoin industry of making “false and greenwashing claims” about its environmental impact. They compare these tactics to those used by the tobacco and fossil fuel industries, alleging that Bitcoin mining leaders publish misleading studies to present a green image.
Renewable Energy Credits (RECs)
Greenpeace criticizes Bitcoin miners for artificially reducing their carbon footprint by purchasing Renewable Energy Credits (RECs) and reporting market-based emissions. These credits often fail to significantly reduce carbon emissions or promote renewable energy development.
Regulation and Taxation
To curb Bitcoin mining’s energy consumption, Greenpeace advocates for regulation and taxation. They support the U.S. administration’s Digital Asset Mining Energy (DAME) tax proposal, which aims to incentivize cleaner mining operations.
Cryptocurrency Regulation and Politics
As the U.S. elections approach, cryptocurrency regulation is a hot topic. Former President Donald Trump supports Bitcoin mining, while President Joe Biden’s administration takes a more critical view, potentially impacting voter sentiment in key swing states.
Proof-of-Work vs. Proof-of-Stake
Greenpeace’s push for Bitcoin to transition from proof-of-work to proof-of-stake, similar to Ethereum, remains controversial. The Bitcoin community largely opposes this change, viewing it as a threat to Bitcoin’s decentralized nature.
Conclusion
The ongoing clash between environmental concerns and the cryptocurrency industry’s growth is set to intensify, especially with Greenpeace’s critical stance and the financial sector’s significant role in supporting Bitcoin mining.
