The Energy and Climate Implications of Digital Assets

The document argues that proof-of-work digital currencies, specifically Bitcoin, cause significant environmental harm through soaring electricity demand, increased greenhouse gas emissions, and the generation of substantial electronic waste. It highlights the negative impacts on local communities, such as increased electricity prices and thermal pollution in water bodies, and notes that these operations can strain critical semiconductor supply chains. The authors propose several mitigation strategies, including stringent EPA permit reviews, the creation of a mining operation registry by the OMB, energy efficiency standards from the DOE, and transparency requirements from financial regulators like the SEC and CFTC.

• Bitcoin's electricity consumption is growing rapidly and exceeds that of some entire nations. Between April 2017 and April 2022, its demand increased 20-fold, from 7 TWh to 151.2 TWh. Estimates suggest Bitcoin mining consumes 153.67 TWh per year, which is more than the electricity used by Sweden or Poland.
• Proof-of-work mining is significantly more energy-intensive than other validation methods. Proof-of-stake cryptocurrencies generally require far less electricity, with energy consumption per transaction being "two-to-three orders of magnitude" lower than Bitcoin. Ethereum estimates that transitioning from proof-of-work to proof-of-stake will reduce its electricity use by 99.95%.
• Bitcoin mining contributes substantially to global greenhouse gas emissions. U.S.-based miners account for one quarter of global emissions from Bitcoin mining. In 2020, the electricity used for Bitcoin mining resulted in nearly 60 million tons of carbon dioxide emissions.
• Cryptocurrency mining operations cause localized environmental and economic harm. In upstate New York, mining increased electric bills by approximately $165 million for small businesses and $79 million for individuals. Specific examples include the Greenidge Generation Station, where CO2 emissions increased 479% in its first year of mining and which discharges up to 134 million gallons of hot water daily into Seneca Lake, and the Hardin Coal Plant in Montana, where CO2 emissions increased 850% in 2021 compared to the prior year.
• Proof-of-work mining generates significant electronic waste due to the rapid obsolescence of hardware, which often lasts less than two years. In 2021, Bitcoin generated over 30,000 metric tons of e-waste, a volume comparable to the total e-waste produced by the Netherlands.
• The demand for application-specific integrated circuits (ASICs) by Bitcoin miners has contributed to global semiconductor chip shortages, impacting over 100 industries, including the electric vehicle sector.

APA

Earthjustice (2022). The Energy and Climate Implications of Digital Assets. https://earthjustice.org/wp-content/uploads/5.9.22_final_eo_national_comments.pdf

Chicago

Earthjustice. The Energy and Climate Implications of Digital Assets. 2022. https://earthjustice.org/wp-content/uploads/5.9.22_final_eo_national_comments.pdf.

Wikipedia

{{cite press release |author=Earthjustice |title=The Energy and Climate Implications of Digital Assets |date=9 May 2022 |url=https://earthjustice.org/wp-content/uploads/5.9.22_final_eo_national_comments.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{earthjustice2022energy, author = {{Earthjustice}}, title = {{The Energy and Climate Implications of Digital Assets}}, publisher = {Earthjustice}, year = {2022}, month = may, url = {https://earthjustice.org/wp-content/uploads/5.9.22_final_eo_national_comments.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }