Non-profits based cryptocurrency platform Pledge has unveiled its patent pending carbon offset initiative for supporting verified carbon offset projects via cryptocurrency transactions. As per the company, the mining process connected to cryptocurrency, which is logged on the blockchain, uses energy and contributes to global carbon emissions. Hence, Pledge plans to commission the environmental consulting firm Three Squares Inc, for a cryptocurrency environmental impact assessment to quantify the carbon emissions of cryptocurrency transactions made on its platform.
Pledge wants to unlock cryptocurrency donations for being a new source of funding for nonprofits around the globe in a sustainable way, James Citron, CEO, Pledge, said. “Inspired by our core values of care and community, we wanted to respond to environmental concerns about crypto, which is why we are leading with the patent-pending invention to ensure that every crypto transaction through Pledge will support UNverified projects. This ensures that PledgeCrypto will not only be the most accessible way for donors to donate their digital assets and for nonprofits to receive them but also in the most environmentally conscious way in the industry,” he added.
While the final emissions might vary based on energy, location, and currency, Pledge estimates that roughly 100 donations will generate approximately 2.6 tons of carbon dioxide (CO2) emissions. To compensate for this environmental impact, Pledge claims to cover 100% of the carbon footprint for each donation at no additional cost to donors.
Eight of the most used cryptocurrencies were evaluated to quantify the emissions associated with a single transaction. This analysis factored the total estimated energy of the cryptocurrency, matched with recent transaction volumes. A weighted electricity emissions factor was derived based on the regional breakdown of transaction locations around the globe. Multiple data sets were also used to ensure optimal data integrity.