Energy Web and RMI have launched a project based on a blockchain approach to assessing the material impact of renewable energy purchases.
The Green Evidence for BTC project approach, which is currently being tested with bitcoin diggers but is applicable to each sector, uses a quantitative method to measure the impact of net emissions from renewable energy orders from companies.
Products such as renewable energy certificates and guarantees of origin are commonly used by companies and other organizations to reduce their carbon emissions, but determining their impact in the real world can be a challenge.
The proposed approach, which is now open to consultation, aims to address this issue by assessing and evaluating both the emissions generated by the company’s activities and the emissions mitigated by their energy certificates.
This should enable companies and the public to understand the real impact of emissions from their operations and pave the way for investors and others to engage exclusively with actors who are actively contributing to a cleaner network, according to an Energy Web statement.
“Environmental, social and governance factors are paramount for senior decision-makers and corporate boards in every industry, including crypto,” said Jesse Morris, CEO of Energy Web.
He added that while the approach is suitable for use in any number of industries, bitcoin in particular is beneficial and many bitcoin miners have advised its initial design.
“By pairing the design criteria with our decentralized technology solution for certification of renewable mining, we can help accelerate the decarbonisation of bitcoin and other cryptocurrencies.
The initiative is one of the goals of the Crypto Climate Accord, launched by the Energy Web, RMI and the Innovative Regulations Alliance in April 2021 to decarbonise the crypto industry.
It aims to form the basis for a possible program for certification of accreditation operations for digging and hosting with renewable sources.
“Material impact”, the concept on which the approach is based, refers to contracts with the effect of reducing net emissions by relocating operations or financing new renewable assets to cover energy consumption.
“The approach we have developed has the potential to transform carbon and sustainability reporting in any sector that uses market-based renewable energy mechanisms,” said Josh Henrettig, Managing Director of RMI’s Climate Intelligence Program.
“However, when REC markets are scarce, this solution creates greater transparency and impact checks than anything that has come before.”
Comments on the proposal Approaching can be filed until June 10. The finalized approach will then provide information on the development of certification criteria that will be used to issue verifiable credentials to eligible miners and hosting companies.