As the spotlight turns once again towards the environmental impact of blockchain technologies, support for the Crypto Climate Accord has come from curious corners of the industry, raising questions about its signatories’ motives.
Authenticity of CCA’s Support Remains Debatable
With concerns surrounding blockchain’s environmental impact garnering a lot of attention, the alarms have grown so loud that crypto mining was the hottest topic of discussion during this year’s UN World Environment Day.
This echoed increased support for initiatives designed to restore the natural ecosystem, proposed by several prominent personalities and environmentally-conscious investors. For instance, this year’s mid-May crypto market crash started when Elon Musk suddenly tweeted that Tesla won’t be accepting Bitcoin as payment due to ‘environmental concerns.’
While blockchain is a powerful and transformative technology that can support real-world cases across a growing range of sectors, its energy footprint is a matter of concern. Blockchains relying on the proof-of-work (PoW) consensus mechanism require high-performance computers, which consume immense amounts of power, leading to inefficiency, non-renewable resource consumption, and significant electronic waste.
To address the carbon footprint of cryptocurrency mining, a newly announced Crypto Climate Accord (CCA) takes on the challenge of transitioning all blockchains to renewable energy by 2030 or sooner and eliminating greenhouse emissions by 2040. Led by private organizations operating within the blockchain and fintech industries, the Accord aims to build a sustainable crypto ecosystem with support from the UN’s Framework Convention on Climate Change.
As of now, the accord has garnered support from some influential names, including crypto company Ripple, blockchain software technology developer Consensys, billionaire climate activist Tom Steyer, and the UN’s ‘climate…