The European Commission has taken the initiative to commission a study aimed at developing a comprehensive methodology to reduce the environmental impact of crypto-assets. The Commission’s call for proposals explicitly addresses the need for innovative solutions to minimize the carbon footprint of cryptocurrencies. The Commission has allocated approximately 800,000 euros for this study, which is expected to span 13 months. The crypto sphere, led by Bitcoin, has long been under scrutiny for its energy-intensive operations. Bitcoin, in particular, relies on a process called proof-of-work (PoW) to validate transactions and secure its network. PoW demands substantial computational power and electricity, resulting in a massive carbon footprint. The energy consumption of Bitcoin alone has been likened to that of entire countries, causing a ripple effect on global energy resources and carbon emissions.This heightened energy usage has far-reaching implications. Firstly, it exacerbates the climate crisis by significantly increasing greenhouse gas emissions. Secondly, it places immense pressure on energy infrastructure, potentially leading to energy shortages in certain regions. Lastly, it threatens the European Union’s commitment to meeting its climate and sustainability goals, as outlined in the Paris Agreement.The European Commission’s forward-thinking approach aims to pave the way for greener and more sustainable practices. By addressing the energy consumption issues associated with these asset types, the EU aims to strike a balance between technological innovation and environmental responsibility, ensuring that the crypto industry aligns with the broader goals of combating climate change and preserving the planet for future generations. The European Commission has initiated a tender process aimed at adopting a model-based approach to mitigate the substantial environmental impact posed by the mining of cryptocurrencies. This move underscores the European Union’s commitment to upholding its climate and sustainability objectives as outlined in the Paris Agreement. Interested parties have until November 10th to submit their tenders or requests to participate in this groundbreaking project.

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Information	Details
Geography	Europe
Countries
Sentiment	positive
Relevance Score	9
People	Proof-of-Work, Paris Agreement, European Commission, Bitcoin, European Union
Companies	TradingView.com, Proof-of-Work, Paris Agreement, European Commission, Bitcoin
Currencies	None
Securities	None