Wall Street giants are being called out by Greenpeace USA for their role in funding the environmentally harmful Bitcoin mining industry, according to a fresh report by the environmental NGO.
In a departure from past reports on Bitcoin mining, Greenpeace’s latest publication, titled “Bankrolling Bitcoin Pollution,” shifts the focus from the miners themselves to the financial institutions supporting them.
The report alleges that major financial players like Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual are the top backers of carbon-intensive Bitcoin mining operations. Together, these institutions were responsible for emitting over 1.7 million metric tons of CO2 in 2022, equivalent to the emissions from more than 335,000 American households using electricity for a year.
Greenpeace argues that the growth of Bitcoin mining as a commercial industry has been facilitated by the need for significant capital, which banks and asset managers are providing. Despite touting sustainability goals, these financial entities are allegedly turning a blind eye to the environmental impact of their investments.
The NGO criticizes the lack of transparency in the crypto mining industry, which it claims allows companies to avoid accountability for their carbon emissions. Greenpeace insists that financial institutions involved in Bitcoin mining should disclose the emissions associated with their investments to enable stakeholders to make informed decisions.
Moreover, Greenpeace accuses Wall Street of financing climate change by supporting the expansion of Bitcoin mining operations, particularly in the United States. The report highlights the role of companies like BlackRock, Vanguard, and MassMutual in enabling carbon-intensive mining activities, despite their professed commitment to sustainability.
In response to the environmental concerns raised by Greenpeace, the NGO proposes regulatory measures and taxation to compel Bitcoin miners to bear the full environmental, social, and economic costs of their operations. This aligns with efforts by the Biden administration to introduce a Digital Asset Mining Energy tax, aimed at incentivizing cleaner mining practices.
While Greenpeace’s recommendations may spark controversy within the cryptocurrency community, the NGO remains steadfast in its stance against the deceptive tactics employed by some Bitcoin miners to downplay their environmental impact. As debates over the future of Bitcoin mining in the U.S. continue, the role of major financial institutions in shaping the industry’s environmental footprint remains a point of contention.