Environmental Impact of Cryptocurrencies

Environmental Impact of Cryptocurrencies

Make Cryptocurrencies Sustainable

Cryptocurrencies are here to stay. Many cryptos like Bitcoin, however, use an energy-intensive proof-of-work mining process. It is therefore said that they are a disaster for the environment. According to the Bitcoin Energy Consumption Index, Bitcoin has an annualized carbon footprint of 97.14 Mt CO2. That is the same size Kuwait’s carbon footprint has.

We can now help mitigating that impact: We have offset the carbon footprint of our flagship Bitcoin ETP with project-based carbon credit, and we will be applying the same methodology to our other crypto ETP.

Make an Impact

We acknowledge the threat of climate change on the environment and recognize that it is imperative to use our position as a global asset management platform to implement positive change and offset any negative impact.

Our mission is to have a carbon-neutral product range. In our opinion, this is the next stage in the evolution of an alternative, blockchain-powered financial system.

How to Invest Sustainably in Crypto

We use a transaction-based methodology that has been developed by the Frankfurt School Blockchain Center (FSBC) to determine the carbon footprint of the cryptomining process linked to our exchange traded products (ETPs). This methodology is currently the most transparent method for holders of Bitcoin and users of corresponding blockchains.intas.tech, a spin-off of FSBC and Plutoneo Consulting, periodically recalculates the CO2 footprint for us, so these emissions may be offset in the long term. This is accomplished through the purchase of CO2 certificates supporting impact-oriented projects that have been tested and certified by renowned climate and nature conservation groups.

Reaching Net Zero

As a global ETP issuer, we want to facilitate climate-smart investing in crypto assets. Working with Carbon Trade Xchange, the leading global spot trading platform for voluntary carbon credits, we identified the first of many carbon-neutral projects: the Envira project in the Brazilian Amazon basin, a Reducing Emissions from Deforestation and forest Degradation project (REDD project).

The Envira project is being developed and registered by Verra, the world’s leading voluntary greenhouse gas programm, under the Verified Carbon Standard (VCS) and the Climate, Community and Biodiversity Standard (CCBS) to ensure that our carbon offsetting approaches are fully implemented. Verra not only verifies every carbon project at launch but provides an ongoing monitoring to ensure the standards are still met.

Benefits of DDA’s first CO2 carbon credits project:

● offsets around 12.6 million tonnes of CO2 emissions within a period of ten years
● saves up to 200,000 hectares tropical forest from deforestation
● promotes biodiversity
● reduces poverty through employment

Download the full project description

How We make our Bitcoin ETP Carbon Neutral

Using the transaction-based methodology by the Frankfurt School Blockchain Center, our Physical Bitcoin ETP generated a carbon footprint of approximately 37 tonnes of carbon dioxide equivalent (tCO2eq) over the analyzed period from April 15 to June 30, 2021 (Q2 2021).

To have these emissions offset in the long term, we have purchased and redeemed (i.e. permanently removed from circulation) CO2 certificates to support impact-oriented projects that have been tested and certified by renowned climate and nature conservation groups.

About the Study: Carbon Emissions of Bitcoin from an Investor Perspective

Text: In this study, the Frankfurt School Blockchain Centre addresses together with intas.tech one of the most impactful criticisms of Bitcoin – its electricity consumption. This study analyzes the current global CO2 footprint caused by the Bitcoin network and outlines a new approach to offset the CO2 emissions.

About the Study: Carbon Emissions of Bitcoin from an Investor Perspective

Text: In this study, the Frankfurt School Blockchain Centre addresses together with intas.tech one of the most impactful criticisms of Bitcoin – its electricity consumption. This study analyzes the current global CO2 footprint caused by the Bitcoin network and outlines a new approach to offset the CO2 emissions.

Download the Report

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Disclamer

In no event will you hold Deutsche Digital Assets GmbH, its subsidiaries or any affiliated party liable for any direct or indirect investment losses caused by any information in this article. This article is not investment advice or a recommendation or solicitation to buy any securities.
 
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