European Commission Initiates €800,000 Study to Address Crypto's Environmental Impact
On Tuesday, the European Commission awarded an 800,000 euro ($842,000) contract as part of its efforts to address the environmental impact of cryptocurrencies.
In a tender document released on September 26, titled "Developing a Methodology and Sustainability Standards for Mitigating the Environmental Impact of Crypto-assets," the European Commission highlighted concerns about the environmental and climate impact of cryptocurrencies.
"There is evidence that crypto-assets can cause significant harm on the climate and environment and generate negative economic and social externalities, depending on the consensus mechanism used to validate transactions."
The EU noted that depending on the consensus mechanism used for transaction validation, crypto-assets can have significant adverse effects on the environment, economics, and society.
In response to the increasing demand for crypto-assets and crypto-mining, even within the EU, the Commission has expressed concerns over the potential to undermine the region's climate and sustainability objectives outlined in the Paris Agreement.
In 2015, world leaders established the Paris Agreement to combat climate change. Its primary goals are to limit global warming to well below 2°C above pre-industrial levels, aiming for 1.5°C.
Countries submit national climate action plans (NDCs) to reduce emissions, regularly enhancing these plans. Transparency and financial support for developing nations are key.
The Paris Agreement became effective on November 4, 2016, after ratification by at least 55 countries responsible for over 55% of global emissions, with all EU nations onboard.
However, due to the recent pressure from crypto, the Commission's recent action, for which bids will be accepted until
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