Greenpeace Says Wall Street Should Be Accountable For Bitcoin Emissions

Greenpeace Says Wall Street Should Be Accountable For Bitcoin Emissions

Greenpeace USA has issued a new report in which it has targeted Wall Street. The environment-focused NGO has claimed that financial institutions are responsible for supporting the Bitcoin mining industry.

The non-government organization (NGO) has also issued other papers on the Bitcoin mining industry. However, this report is different.

The difference

This is because the report in question is not focused on the BTC miners, but on the banking industry and Wall Street.

According to Greenpeace, economic incentives have been created by big finance and this supports the emission-intensive bitcoin mining industry.

Therefore, the ecological threat associated with the bitcoin mining industry has continued to persist. The top five financiers named in the report, are supporting carbon pollution via bitcoin mining firms.

These include prominent names like MassMutual, Vanguard, BlackRock, Stone Ridge Holdings, and Trinity Capital.

The report revealed that in 2022, these five companies were responsible for more than 1.7 million metric tons of carbon dioxide.

This is the equivalent of emissions of 335,000 homes in the US that use electricity in a year. Greenpeace asserted that the bitcoin mining industry has transitioned into a huge, commercial operation.

The role

A significant amount of capital is required for purchasing computing equipment and building mining facilities.

Mining companies rely on asset managers and banks for capital. The banking industry and Wall Street respond to this need because they are eager to share the profits.

As per the report, there needs to be accountability for companies like BlackRock for supporting the mining industry.

It said that it is the duty of asset managers and banks to provide their clients and shareholders with complete risk disclosure.

These people are not aware of the climate risks associated with Bitcoin. Greenpeace also criticized the lack of scrutiny of traditional finance companies making investments in Bitcoin mining operations.

The criticism

According to the NGO, there is no transparency and disclosure in the crypto mining industry. Therefore, Bitcoin mining firms are not held accountable for their actions.

Hence, most people remain unaware of the climate problem related to Bitcoin. It said that regulators, stakeholders and investors who may want to follow green policies are unable to make an informed decision.

This is because there is no emissions reporting. It believes that financial companies should make disclosures about the emissions linked to their Bitcoin mining investments.

Greenpeace is also called banks hypocritical for setting sustainability and green goals and then making investments in the crypto mining industry.

One of the biggest hotspots for Bitcoin mining in the United States is Texas. After China imposed a mining ban, a number of miners shifted their operations to Texas.

According to Greenpeace, Wall Street firms are responsible for financing these miners. This has resulted in the construction of numerous BTC mining facilities.

The report also shed light on the facility of Riot Platforms near Rockdale. Greenpeace estimated in 2022 that the facility has the largest output of carbon emissions.

State Street, Morgan Stanley, BlackRock, and Vanguard are the main financiers of the facility in question.