As the United Nations Climate Change Conference (COP 26) begins in Glasgow, a crypto trade group called Global Digital Finance is lobbying for more concrete parameters on how to measure the environmental impact of digital assets.

Why should we care?
Bitcoin mining has been scrutinized for its excessive use of electricity. While many industry participants are working to mitigate its environmental impact through the use of renewable energy, much of the mining is still reliant on fossil fuels. The industry is pushing back against the view that crypto mining is an environmental disaster, a narrative that Global Digital Finance said is “intellectually dishonest in its assertions and conclusions.” But given the increased attention on adherence to environmental, social and corporate governance (ESG) principles, the industry faces pressure to manage its environmental impact. Global Digital Finance, whose members include BitMEX, Coinbase, and Abu Dhabi Global Market, is calling for greater transparency on how to measure the climate impact of digital assets. “It may be time for our industry to partner with established leaders in carbon accounting and reporting to develop a bespoke, standardized framework for assessing and disclosing the climate impacts of crypto mining, trading, and holdings,” Coinbase Chief Policy Officer Faryar Shirzad said. But data gathering – and reaching agreed-upon standards to do so – will likely be a challenge.