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ESG Study: Methane-Fuel Bitcoin Mining Can Eliminate 5.32% of Global Emissions

ESG Study: Methane-Fuel Bitcoin Mining Can Eliminate 5.32% of Global Emissions

It’s about methane. Finally, an ESG analyst reviews the data and gives bitcoin mining the praise it deserves. In the article “Quantifying the potential impact of Bitcoin mining on global methane emissions”, Daniel Batten confirms what was said by Bitcoinist. Bitcoin mining is an ally of the environment. Furthermore, it is the only industry that has the characteristics and the incentive structure to do so.

And Daniel Batten, an analyst at ESG and ClimateTech VC, published the study under the Batcoinz brand. This is the first article on the page and it has already caused quite a stir. “Bitcoin mining is currently the only way to reduce these methane emissions that is technologically feasible and does not require significant behavioral change to work,” the document states.

Related Reading | Is ESG Behind Bitcoin’s Next Bullish Narrative?

And Batten and company say it’s “the only way” because bitcoin mining has “the unique combination of being location-independent, mobile, and preemptible that makes bitcoin mining the only economically feasible use case for both.” major sources of leaky methane emissions examined in this paper.”

We publish the methodology, the calculations for everyone to review and we appreciate your consideration. This is a first attempt to quantify the impact of climate change. We invite others to contribute to research calibrating bitcoin mining growth rates and restrictions.

— Daniel Batten (@DSBatten) May 24, 2022

And “for those who previously believed that BTC had a negative impact on the environment,” Batten and company have a message. “We are fully aware that this discovery may come as a surprise. As environmentalists, we too were shocked and had to wrestle with inherent biases, as each new fact contradicted each previous belief.

It is important to note that Daniel Batten also states: “We did not receive any funding for this research. We have no affiliation with Bitcoin mining companies or the like. If you find any defects, please let us know. We will continue to improve.

Table of Contents:

What does the ESG study say about methane?

Why is Bitcoin constantly under attack from the ESG crowd? Because “the energy consumption of bitcoin mining is obvious, but its environmental benefit is not immediately obvious. Perhaps for this reason, it is easy to make a premature and superficial assessment based solely on energy consumption that Bitcoin has a net negative environmental impact. Such reasoning is flawed, as the net impact can only be established by considering both environmental costs and benefits.

And what is the advantage in this case? Well, the study only looks at methane, and its results reflect the “lowest achievable target.” This means that the percentage of global emissions that bitcoin can eliminate is probably higher than 5.32%. The study explains:

“We only quantified the net impact in CO2 equivalent where Bitcoin mining was the only economically viable technology capable of burning this methane. Our results will give a minimum achievable goal, as we only quantify the benefit of the environmental impact of the combustion of flared gas and landfill.” gas: these being the largest emitters of methane, collectible by miners.

BTC price chart for 05/28/2022 at Capital.com | Source: BTC/USD on TradingView.com

dispel misconceptions

The study quotes Inger Andersen, Executive Director of UNEP, as saying that “reducing methane is the most powerful lever we have to slow climate change over the next 25 years and complements efforts needed to reduce carbon dioxide.” However, the general public has several misconceptions about “bitcoin mining using methane as an energy source”.

While the study dispels these misconceptions, we learn that using methane-fueled power for something more practical “is neither economically nor logistically possible. Unless you want to build a hospital or a residential town in the middle of an oil field. Power can only travel so far. On the other hand, “mobile Bitcoin miners are the only location-independent user happy to be located in the oil field, who can start using this power and remove harmful methane immediately.”

Conclusion: Bitcoin is the best friend of the environment

Facts are facts: “Using Bitcoin mining to burn leaking methane sources may eliminate 5.32% of all global emissions by 2045. This represents 23% of all global methane emissions.” : More than half of UNEP’s 45% methane reduction target by 2045.” These are big numbers.

An #ESG attack on #BTC weakens the credibility of #ESG, not #BTC

— Daniel Batten (@DSBatten) May 26, 2022

However, this not all. “Bitcoin mining has the realistic potential to help humanity avoid almost 0.15% of warming by 2045. To our knowledge, no other technology can legitimately claim this,” the study statement read. And it does it all on its own, bitcoin doesn’t need “carbon credits, government regulation, and government funding.” How can you achieve this? Because since bitcoin mining “makes business sense for both the issuer and the miner, it can be done through private business deals.”

Related Reading | Bitcoin mining rigs could be heating up Vancouver homes next year. Take that, ESG FUD

After reviewing the numbers and producing the study, what does Daniel Batten think now? He said via Twitter: “An ESG attack on BTC weakens the credibility of ESG, not BTC.”

Featured Image by awsloley from Pixabay | Charts by TradingView

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