Crypto-assets versus climate change and energy market in the U.S.

The White House published a report on the impact of the crypto-asset market on climate change and energy market in the United States (Climate And Energy Implications of Crypto-Assets in The United States). The report contains data on crypto-assets that rely on Blockchain.

The United States host about a third of global crypto-asset operations and the world’s largest Bitcoin mining industry. It is estimated that around 38% of Bitcoin mining activity takes place in the U.S.  The crypto-asset electricity usage in the U.S. is comparable with the electricity usage of all U.S. home computers or home lighting. This has an impact on the U.S. natural environment and climate goals, for example reduction in greenhouse gas (GHG) emissions by 2030 and implementation of a carbon pollution-free electricity system by 2035. Crypto-asset operations are estimated to result in GHG emissions at a level similar to emissions from diesel fuel used in railroads across the United States.

The report contains recommendations on the transition of the crypto-asset industry to clean energy, with a particular emphasis on the need to reduce GHG emissions, by developing and using environmentally responsible crypto-asset technologies. The technologies should, in particular, include standards for very low energy intensities, low noise generation, low water usage, and clean energy usage. Should those measures prove ineffective, the U.S. Congress may take actions to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining. An emphasis was also placed on the need to minimise the negative impact from the crypto-asset industry on local communities and environment and to avoid operations that reduce the reliability of electric grids or increase the costs for electricity users.

More details about the report can be found here:

https://www.whitehouse.gov/ostp/news-updates/2022/09/08/fact-sheet-climate-and-energy-implications-of-crypto-assets-in-the-united-states/

https://www.theverge.com/2022/9/8/23341685/crypto-mining-bitcoin-energy-environment-impact-report-biden