Banks Fueling Bitcoin’s Environmental Impact, Says Greenpeace

Greenpeace USA has released a report titled “Bankrolling Bitcoin Air pollution: How Massive Finance Helps a New Local weather Risk,” criticizing major Wall Street financial institutions for supporting the Bitcoin mining industry. The report argues that these institutions, including Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual, are indirectly responsible for significant carbon emissions by financing Bitcoin mining operations. In 2022, their investments reportedly resulted in over 1.7 million metric tons of CO2 emissions, equivalent to the annual emissions of more than 335,000 American homes.
Greenpeace claims that Bitcoin mining companies rely on substantial financial backing to build and maintain their operations, and banks and asset managers are eager to provide this support, driven by profit motives. The report calls for these financial institutions to disclose the climate risks associated with their investments and criticizes the lack of transparency and accountability in the crypto mining sector.
The NGO highlights the contradiction between the sustainability goals of institutions like BlackRock and their substantial investments in Bitcoin mining, which contribute to significant carbon emissions. Greenpeace suggests that regulation and taxation, such as President Joe Biden’s proposed Digital Asset Mining Energy (DAME) tax, are necessary to mitigate the environmental impact of Bitcoin mining. Additionally, Greenpeace advocates for Bitcoin to transition from its current proof-of-work (PoW) consensus mechanism to the less energy-intensive proof-of-stake (PoS) model, similar to Ethereum’s transition.
The report also accuses the Bitcoin industry of greenwashing by making misleading claims about the environmental benefits of Bitcoin mining and using Renewable Energy Credits (RECs) to artificially lower their reported carbon footprints. Greenpeace’s stance has sparked controversy within the cryptocurrency community, which largely opposes changes to Bitcoin’s consensus protocol.