The Bitcoin ESG Forecast has released a report indicating that Bitcoin mining using sustainable energy has reached a record high of 54.5%, with an overall increase of 3.6% in sustainable mining throughout 2023. The analysis utilized data from the Bitcoin Energy and Emissions Sustainability Tracker (BEEST Model) and publicly available data to compare Bitcoin's sustainable energy usage with other industries over the past four years.
Among various sub-sectors, Bitcoin mining stands out with the highest proportion of sustainable energy use at 54.5%, showcasing a growth of 3.6% in sustainable mining in 2023 when compared to other global industries. An interesting finding in the report highlights the use of methane emissions by off-grid Bitcoin miners. Small oil producers in Canada and the United States are obligated to pay for permits to burn natural gas, some of which emit methane. However, certain mining companies harness the emitted methane to generate electricity for Bitcoin mining, resulting in a reduction in environmental impact compared to releasing it into the atmosphere.
The report suggests that the Bitcoin network achieved an all-time high in uncompensated emissions reduction, decreasing emissions by 7.3%. This marks the most substantial level of uncompensated emissions reduction observed in any industry. The growth of off-grid renewable energy mining, such as Tether's expansion into hydro-mining in Latin America, and the identification of more off-grid mining operations reducing methane emissions, contribute to the Bitcoin network's increased reliance on sustainable energy.
Following China's mining ban and Kazakhstan's effective ban on mining, miners predominantly shifted operations to green grids or sustainable off-grid locations in North America. The report also notes a global trend toward a greener power grid, advancing at a rate of 0.7% per year. However, it highlights that the emissions intensity of grid-connected Bitcoin miners increased by 29% compared to 2021.
