White House science office looks at crypto’s effect on climate, despite scarce data
The White House Office of Science and Technology Policy (OSTP) has weighed in on the environmental and energy impact of crypto assets in the United States, finding that crypto makes a significant contribution to energy usage and greenhouse gas (GHG) emissions. It recommends monitoring and regulation in response.
The report, released Sept. 8, was the latest to come out of the U.S. President Joe Biden’s March executive order (EO) on the development of digital assets. The EO charged the OSTP with investigating the energy usage associated with digital assets, comparing that usage with other energy outlays, investigating uses of blockchain technology to support climate protection and making recommendations to minimize or mitigate the environmental impact of digital assets.
The study found that crypto assets use approximately 50 billion kilowatt-hours of energy per year in the U.S., which is 38% of the global total. A lack of monitoring made accurate energy accounting impossible. The report upheld the tradition of making creative energy usage comparisons, however, saying that crypto assets are responsible for slightly more energy usage in the U.S. than home computers, but less than home lighting or refrigeration. Furthermore:
High energy usage wears down grids and drives up energy prices, the report said. The role of Proof of Work staking in crypto asset energy consumption was clearly noted, as was the fact that changes in consensus mechanism usage and the field’s rapidly evolution make forecasting future energy usage impossible as well.
Related: White House office seeks public opinion on crypto-climate implications
In any case, the report said, “Crypto-asset mining using grid electricity generates greenhouse gas emissions –
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