Environmental Impact of Cryptocurrencies

Facilitating climate-smart investing in crypto assets

Our Commitment to Sustainable Investing

As the cryptocurrency industry has grown in popularity and size, there has been a growing recognition of the need to address its environmental impact and a growing effort to develop more sustainable and environmentally friendly technologies, practices, and business models within the industry.

To help mitigate the impact, Deutsche Digital Assets has committed to offsetting the carbon emissions generated by its DDA Physical Bitcoin ETP through a comprehensive carbon offsetting program. The program funds impact-oriented projects that have been tested and certified by renowned climate and nature conservation groups and are effectively neutralizing the carbon footprint of the product. Explore further to find out how to invest sustainably in Bitcoin.

DDA PHYSICAL BITCOIN ETP

Methodology – How to Invest Sustainably in Bitcoin

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 calculates the CO2 footprint for DDA, 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.

FIND OUT MORE ABOUT THE METHODOLOGY HERE

Invest Sustainably in Crypto, DDA Bitcoin ETP

Project Details

As a crypto and digital asset manager, we want to facilitate climate-smart investing in crypto assets and provide investors the opportunity to invest sustainably in Bitcoin. 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 DDA Physical Bitcoin ETP Carbon Neutral

DDA offsets the DDA Physical Bitcoin ETP’s ongoing carbon footprint on an ongoing basis helping investors achieve their sustainability goals. According to the transaction-based methodology by the Frankfurt School Blockchain Center, DDA Physical Bitcoin ETP generated a carbon footprint of approximately:

37 tonnes of carbon dioxide equivalent (tCO2eq) over the analyzed period from 15 April to 30 June 2021 (Q2 2021)
90 tonnes of carbon dioxide equivalent (tCO2eq) for the period from 1 July 2021 to 31 December 2022

Since the launch of the product in early 2021, together with CTX Carbon Exchange, a leading global spot trading platform for voluntary carbon credit, DDA has offset 140 tonnes of carbon dioxide equivalent (tCO2eq) by permanently removing (“retiring”) the carbon credits from circulation.

As a crypto and digital asset manager, we enable environmentally conscious investing in crypto assets and provide sustainable investment opportunities for those interested in investing in Bitcoin.

Downloads

Certificates of Verified Carbon Unit (VCU) Retirement

Bitcoin Carbon Footprint Analysis 2021

Bitcoin Carbon Footprint Analysis 2022

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

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

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.

Deutsche Digital Assets GmbH is not registered as an investment advisor in any jurisdiction. You agree to do your own research and due diligence before making any investment decision with respect to securities or investment opportunities discussed herein.

Our articles and reports include forward-looking statements, estimates, projections, and opinions which may prove to be substantially inaccurate and are inherently subject to significant risks and uncertainties beyond Deutsche Digital Assets GmbH’s control. Our articles and reports express our opinions, which we have based upon generally available information, field research, inferences and deductions through our due diligence and analytical process.

Deutsche Digital Assets GmbH believes all information contained herein is accurate and reliable and has been obtained from public sources we believe to be accurate and reliable. However, such information is presented “as is,” without warranty of any kind.