Crypto platform Gemini has partnered with a non-profit organization Climate Vault to launch Gemini Green, a climate-conscious initiative that aims to ultimately contribute to the decarbonizing of Bitcoin.
Tyler Winklevoss, CEO of Gemini, commented on the company’s commitment to sustainability:
"As bitcoin emerges as a dominant store of value, it's imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonizing of bitcoin,"
The carbon emissions that the Bitcoin industry produces has resulted in the industry facing huge criticism from environmentalists. With statistics that estimate that Bitcoin has a comparable carbon footprint to that of New Zealand, crypto companies have increasingly turned to greener alternatives, or climate-conscious initiatives to reduce their carbon footprint.
Climate Vault currently works with over twenty different traditional and non-traditional organizations, such as crypto platforms, to assist them in offsetting their carbon footprint. The latest collaboration with Gemini will take the form of a three-step approach:
Climate Vault uses contributions to purchase emissions permits in carbon markets in North America, of which Gemini purchased about $4 million in credits to help offset the carbon emissions footprint of the Bitcoin it holds in custody. Climate Vault prevents other market participants from using these permits to emit CO2 which reduces the overall CO2 allowed under the market's "cap." As the last step, Climate Vault uses the “monetary value of these permits to fund the actual removal of CO2 from the atmosphere by enterprises that are deploying breakthrough carbon dioxide removal (CDR) technologies”.
Here’s what the Co-Founder of Climate Vault, Michael Greenstone, has to say on the collaboration with a crypto company:
"Slowing and ultimately reversing the total amount of CO2 entering the atmosphere is vital to preventing disruptive climate change. Climate Vault is providing a simpler, faster, and more reliable path to net-zero emissions, not just for traditional businesses, but now – thanks to Gemini – for the innovative world of cryptocurrency”
As part of their commitment to sustainability, Gemini has also allocated $1 million through the Gemini Opportunity Fund, that will go towards supporting sustainability in the crypto market.
Bitcoin’s growing sustainability problem is one that will require a multi-pronged approach to find a solution that will satisfy all parties involved. As regulatory bodies increase their oversight of cryptocurrency, it is likely that the attention being paid to environmental factors will also increase in turn.
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