A new certification system, Green Proofs for Bitcoin, has been launched by non-profit organization Energy Web, with the goal of incentivizing sustainable practices in the bitcoin mining industry. Despite growing concerns regarding the environmental impact of bitcoin mining, miners argue that their efforts contribute positively to the decarbonization process.
Additionally, certifications such as Green Proofs for Bitcoin could play a pivotal role in securing the future of the crypto mining industry. By offering transparency into companies’ decarbonization initiatives, this new scoring system can help bridge the gap between sustainable bitcoin miners and companies wanting to invest in the sector.
Location-based clean energy scores are given to miners, taking into account total electricity consumption and the grids being utilized. The scoring system also considers a miner’s “market-based” ways of procuring energy. Consequently, miners now have a platform to demonstrate their sustainability credentials and connect with like-minded organizations.
Critics, however, argue that the industry tends to focus too much on novel solutions, without giving enough attention to traditional decarbonization strategies such as the use of clean grids and market-based purchases of renewable electricity.
While some miners may not currently meet the threshold required for certification, it is hoped that they will strive to do so in the long run. As the industry gets cleaner, the requirements for certification will also evolve. Energy Web intends to provide more detailed examinations of miners’ demand flexibility in the future.
Five miners, including Argo Blockchain, solutions>DMG Blockchain Solutions, and technologies>Hive Blockchain Technologies, have already received certification. Other large mining companies are yet to adopt the system.
Despite the controversies surrounding the environmental impact of bitcoin mining, new certifications like Green Proofs bring hope for a more sustainable future in combination with smarter technologies and legislative changes.