The KPMG report said bitcoin miners could adopt four strategies to reduce their carbon footprint.

KPMG, a major accounting firm, analyzed Bitcoin’s alignment with environmental, social, and governance (ESG) principles, highlighting its potential contributions to sustainability. The report focuses on four carbon-reduction techniques used by bitcoin mining firms.

Bitcoin miners seek affordable renewable energy sources like solar and wind, reducing costs and supporting renewable energy projects in remote areas. The flexibility of bitcoin’s computing load helps balance electrical grids by reducing demand during peak periods. During the Texas Winter Storm Uri, bitcoin miners curtailed energy consumption, giving back 1,500 megawatts to the grid through a demand response system. (Bitcoin.com)

Some miners recycle the intense heat generated by mining rigs to warm buildings and greenhouses, replacing carbon-intensive heating fuels.

Others use flared natural gas from oil fields to power bitcoin mining data centers, reducing methane emissions, a potent greenhouse gas.

Some startups mine bitcoin at landfills, converting methane into electricity, significantly reducing the world’s carbon footprint.

According to an estimate by KPMG, the flared gas emissions originating from oil production in the United States and Canada alone would be sufficient to support the entire bitcoin network.

Utilizing waste methane for mining could further reduce carbon emissions from landfills.

In order to benefit from these emissions-reducing approaches, KPMG suggests that bitcoin mining companies should engage in collaborations with renewable energy developers, grid operators, and landfill managers. Joining industry groups promoting energy and materials stewardship practices can also aid miners in adopting cleaner technologies.

Despite concerns about energy consumption, it is possible that careful facility location and participatory grid management can counterbalance related emissions.

The KPMG report underscores bitcoin mining’s potential to contribute significantly to “Net Zero” or “Carbon Neutrality” goals through proactive partnerships and innovation.

However, miners must disclose energy sourcing, emissions profiles, and sustainability strategies to build confidence in the bitcoin ecosystem’s commitment to minimizing carbon footprints.

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