Cryptocurrencies are a major source of CO2 emissions: IPCC

Cryptocurrencies are a major source of CO2 emissions: IPCC 2

The United Nations arm raised points against the increasing leading tech innovation, causing huge environmental challenges, which includes blockchain technologies.

The adoption of the Crypto and Blockchain industry is rapidly increasing because of its significant potential for data trust and online operations, where the need to trust the data remains a priority. Here we should not consider that blockchain technology is limited to crypto because year by year new things are coming into this world with the use of blockchain technology. 

On 4 April, Intergovernmental Panel on Climate Change (IPCC) released its report and named all those significant technology-based operations, which are actively causing huge emissions of carbon dioxide (CO2) in the environment and causing huge environmental pollution. 

IPCC mainly dragged blockchain technology-based operations, Data centers and claimed that these are major sources of increasing CO2 emissions at present time. 

The report noted that Carbon emission from these industries from 2010 to 2019 was causing an increase in the earth’s temperature by 1.5°C with a total of 50% probability but now this probability factor has been changed into more. 

Report added: 

“While it is clear that the energy requirements of global Bitcoin mining have grown significantly since 2017, recent literature indicates a wide range of estimates for 2020 (47 TWh to 125 TWh) due to data gaps and differences in modeling approaches.”

IPCC noted that almost every technology can introduce some Carbon emission reduction-based provisions with better management.

“They can enhance energy-efficient control, reduce transaction cost for energy production and distribution, improve demand-side management (…) and reduce the need for physical transport.”

EU ban provisions on Proof-of-work Consensus-based digital assets 

In late 2021 EU’ MiCA framework introduced a provision to ban all cryptocurrencies, which are causing huge environmental pollution. 

Later the crypto industry raised its voice at a high level against the drafted bill. Later EU officials introduced some additional provisions and ensured that they will not ban Bitcoin or any other Proof-of-work based assets but surely they will keep eye on such assets except Bitcoin. 

Read also: Coinbase exchange is eager to expand operations in India