In celebration of Earth Month, we are delighted to announce that our patent for environmental carbon offsets, which allows for crypto donations through Pledge, has been issued! 🎉 At Pledge, we strongly believe in caring for our community and the environment, which is why we made it a priority to consider the environmental impact of cryptocurrency when we launched PledgeCrypto™ in 2022.
As a multi-trillion-dollar financial market that includes over 300M users and growing, cryptocurrency offers a huge opportunity to mobilize funding toward a positive impact. PledgeCrypto is the first fundraising platform to not only create a seamless experience offering both crypto and fiat (cash) donation options, we went above and beyond with a patent method of measuring the carbon footprint of these transactions and compensating fully for their associated emissions.
We’re proud to share that every crypto transaction through Pledge will support verified carbon offset projects via the United Nations Climate Neutral Now Initiative.
The mining process connected to how cryptocurrency is logged on the blockchain uses a significant amount of energy and contributes to carbon emissions. And while the true impact varies based on the type of energy used at the mining location, the collective climate cost is high. We can’t transition the world to renewable energy overnight, so the next best thing we can do is to ensure that our transactions work to support programs across the globe that yield environmental and social benefits.
Here’s How 🤓
PledgeCrypto commissioned Three Squares Inc. to conduct a cryptocurrency environmental impact assessment in order to quantify the carbon emissions of cryptocurrency transactions on the PledgeCrypto platform and develop a patent-pending approach to fully compensate for those emissions via carbon offset projects.
Eight of the most used cryptocurrencies were evaluated in terms of the emissions associated with a single transaction. To develop a cryptocurrency emissions factor (a multiplier that could be used to calculate total emissions per donation), the total estimated energy of the cryptocurrency was matched with published transaction volumes, and a weighted emissions factor was developed based on the regional breakdown of transaction locations.
Yes, that’s definitely a mouthful! But that’s what it took to be thorough and accurate.
The results of the analysis revealed that a volume-adjusted emissions factor for a generic cryptocurrency transaction is 23.92kg CO2e. Using such an average, we can estimate that every 100 transactions would result in approximately 2.6 tons of carbon dioxide emissions, which Pledge will offset on behalf of PledgeCrypto users - meaning that the carbon footprint of each donation is 100% covered by Pledge and free for users.
Pledge is tracking every cryptocurrency donation transaction, accounting for how Bitcoin in particular has the highest emissions per transaction, and will retire carbon credits on an annual basis based on total transactions and the environmental impact of the cryptocurrencies used.
Fast facts:
- Pledge will fully cover the cost of carbon offsets for your transactions, it’s free for you!
- Crypto mining location/energy source/market dynamics impact energy consumption
- Bitcoin has the highest emissions per transaction at an estimated 508 kg CO2e
- Carbon offsets provide environmental benefits and compensate for the environmental impact of mining
The Carbon Offset Project
We approached our carbon offset project selection process with a focus on two things we feel are vital in addressing climate change overall: energy and community.
In working with the UN Climate Neutral Now Initiative, we can ensure that the highest international standards are upheld in how the carbon projects are designed, implemented, and monitored for long-term accountability.
Through this program, organizations invest in Certified Emission Reductions (CERs), which are generated from Clean Development Mechanism (CDM) projects and located in developing countries. These projects earn 1 CER for each tonne of GHG emissions they reduce or avoid, and are measured in CO2e (the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas, calculated using Equation A-1 in 40 CFR Part 98).
Our projects are:
Carbon offsets will be divided evenly among the following two projects:
#1 - Energy Impact: Burgos Wind Project
Transitioning to renewable energy is vital for reducing carbon emissions and supporting global climate goals of staying below 1.5° of warming. The Burgos Wind Project is the largest wind farm in the Philippines and is located in one of the best areas in the country to generate clean energy from wind. The 150-MW facility has fifty (50) Vestas V90 wind turbines, each with a rated capacity of 3 MWs. It produces clean energy and displaces energy generated from fossil fuels.
The project complies with all local and national environmental policies, and maintains and monitors strict compliance to standards on land use, water and waste disposal, and noise monitoring. The Burgos Wind Team likewise leads projects and initiatives with the local governments and communities that promote the protection of the environment.
#2 - Community Impact: Cooking Stoves in Malawi
There is always a social dimension to addressing the harmful effects of climate change, which is why our second project is focused on the creation and distribution of efficient wood stoves in Nkhata Bay District, Malawi. This project is reducing greenhouse gas emissions as well as preventing deforestation and respiratory diseases in the region.
Traditional three-stone fires consume a huge amount of wood, resulting in major deforestation of the surrounding forest.They also cause health problems due to smoke inhalation and burns, mostly affecting women and children. The more efficient wood stoves reduce carbon emissions, prevent deforestation and allow reforestation, and improve the health and wellbeing of local communities. The project is also connected to related community benefits such as forest conservation and agroforestry, fishery conservation, women’s empowerment through employment, and education for children.
As always we #PledgeToDoGood in everything we do, and PledgeCrypto is no exception! Thank you for entrusting us with your passion to make a positive impact.
To create your first PledgeCrypto fundraiser, get started here.