In a concerted push to tackle the environmental impact of digital assets, the European Commission has bagged an 800,000 euro contract. The above-said move unlocks a gateway for the development of a methodology and sustainability standards for the mitigation of the environmental hazards related to cryptocurrencies.
The exploration into this field sprouts from the realization of how cryptocurrencies, based on the consensus mechanism leveraged for transaction validation, can have a significant impact on the environment, economy, and society. The concerns run deeper as the wellbeing of our environ, under the current circumstances, is persistently challenged by the surging demand for crypto-assets and crypto-mining within the European Union. The EU alarm bells are rightly ringing, given the potential of such activities to dent climate and sustainability objectives drafted in the Paris Agreement.
To bring you back to scores, the Paris Agreement of 2015 emerged as a global blueprint to counter climate change. Countries across the globe align their national climate action plans to it, pivoting their strategies to target a limit in global warming – well below 2°C compared to pre-industrial levels.
Despite the EU being in full swing with the Agreement, cryptocurrencies have posed concrete threats to the climate change combat motives. Thus, the European Commission, on November 10, released a series of standards contributing to future tactical moves, potentially mitigating crypto’s environmental impact. Furthermore, the initiative entails the introduction of unique energy efficiency labels solely designed for blockchains. The 13-month contract showcases the Commission’s earnest efforts to evaluate the impact of crypto-mining on the environment.
Strikingly, the funding put forth for addressing crypto assets’ environmental impact closely aligns with the EU’s investment plans to juggle multiple challenges and to foster sustainability. Rigorously following the guidelines outlined in the European Green Deal and the REPowerEU Plan, the Union emphasizes energy efficiency and clean energy transitions. Apart from taking steps to curb the environmental footprint left by varying industries like digital assets, the EU is also keen on nurturing skills required for these pivotal transitions.
Additionally, the REPowerEU plan unearths strategical solutions to waiver off the massive impact of the Russian-Ukrainian conflict on European energy supplies. The European Commission seizes this crisis as an opportune time to propel a transition towards cleaner energy.
A pivotal point of action involves regulating the information and communications technology sector’s consumption tariffs – notably blockchains, under this broad canopy. The Commission is also set to roll out an exhaustive year-long study pulling apart environmental concerns linked to crypto-assets, notably its water consumption, waste product generation, natural resource utilization, and energy usage.
In a nutshell, the fervent push by the European Commission to counter the cross-border technological advancements, synergizing their environmental concerns might appear diced with a slice of skepticism, but it reflects the need for a balanced digital future. This balance is what ought to drive the promising landscape of crypto-assets – paving the way for a greener tomorrow.
Source: Cryptonews
