Wall Street giants like BlackRock and Vanguard contribute to the environmental damage caused by mining the first cryptocurrency. This was stated in the American division of Greenpeace.
In the report "Financing Bitcoin Pollution: how large organizations support the new climate threat" it says that companies must take responsibility for supporting the industry with high carbon emissions.
According to the authors of the document, major players advocate bitcoin mining, creating economic incentives, thereby preserving the environmental threat.
Greenpeace named Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard and MassMutual among the most significant "pollution sponsors". According to the report, in 2022 they accounted for more than 1.7 million tons of carbon dioxide (CO2), which is equivalent to the emissions of 335,000 American households.
The organization believes that mining has become a serious commercial industry, where access to significant capital is needed for the construction of facilities and the purchase of equipment. Therefore, cryptocurrency mining firms rely on support from banks and asset managers, and Wall Street "listens to these urges."
"Banks and management companies are required to disclose risks to shareholders and customers who currently lack important information about the climate threat associated with bitcoin," the eco—activists noted.
Double standards
The lack of environmental regulations "allows mining companies to avoid responsibility and hide the scale of the climate problem," Greenpeace says.
The organization called it "hypocrisy" that banks prioritize the environmental agenda, but also invest or finance the bitcoin industry.
Greenpeace stressed that BlackRock is a participant in the Net Zero Asset Managers initiative, which includes a commitment to maintain zero emissions by 2050 in line with efforts to combat global warming.
Environmental activists also accused Wall Street companies of financing a "new gold rush" that led to the construction of many bitcoin mining facilities.
The report mentions a Riot Platforms facility in Texas. According to Greenpeace estimates, the company produces the highest carbon dioxide emissions. It accounts for about 526,000 tons of CO2.
Worse than cigarettes and oil
The organization accused direct participants in the bitcoin industry of false "green" statements regarding the environmental impact of mining. Greenpeace believes that companies promote renewable energy sources, but in fact rarely use them.
The authors of the report compared the mining industry to a "combination of the tobacco and fuel industries." According to them, the leading players in the segment publish "misleading research in predatory scientific journals in an attempt to paint a green image."
Many articles claim that energy-intensive mining is good for the environment, as it stimulates the purchase of outdated renewable energy and ensures the stability of the power grid. However, Greenpeace considers these ideas "speculative, controversial or false."
Some miners artificially reduce their carbon footprint by buying renewable energy credits (REC). Thus, they report on the wider use of renewable energy sources and demonstrate low carbon dioxide emissions in the documents.
Eco-activists said that REC tools are "notoriously unregulated" and are often useless in the context of environmental protection.
Greenpeace is convinced that regulation and taxation should be used to "eliminate the huge energy appetites" of bitcoin miners. Therefore, the United States needs a policy that "forces companies to pay for the environmental, social and economic costs of their activities," the report says.
The organization has approved attempts by the administration of President Joe Biden to impose a 30% tax on the extraction of digital assets. Its representatives believe that fees can "encourage miners to clean up their activities."
In March 2022, environmental activists initiated the "Change the Code, not the Climate" campaign in collaboration with other groups and Ripple co-founder Chris Larsen. Their main goal is to achieve the transfer of digital gold from the Proof-of-Work algorithm to Proof-of-Stake.
In the spring of 2023, Greenpeace unveiled a mascot that embodies the "dangerous amounts of pollution" caused by mining the first cryptocurrency.
Later, the creator of the image, artist Benjamin von Wong, stated that his work "was never intended to fight bitcoin."
Recall that in January 2024, Greenpeace criticized the decision of the U.S. Securities and Exchange Commission regarding spot bitcoin ETFs.
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