Energy-intensive mining of crypto-assets

The mining of cryptoassets requires an enormous amount of electricity and therefore has a major negative impact on the climate. Production leads to major emissions of greenhouse gases and threatens the climate transition.

The method – Proof of Work – used to mine bitcoin, for example, requires a lot of electricity. Since cryptoproducers have largely placed their operations in countries with low energy prices and a high share of fossil-dependent electricity production, this entails large emissions of greenhouse gases.

Other mining of cryptoassets uses renewable energy, but the energy needed for this mining is increasing, which means that there is a risk that renewable energy will not be sufficient in the future for the crucial climate transitions that we need to make.

We therefore propose the following measures:

  1. That the EU investigate a ban on the energy-intensive mining method Proof of Work. There are other methods for mining cryptoassets that reduces energy consumption by 99.99 per cent with maintained functionality.
  2. That Sweden in the meanwhile oppose the broad establishment of cryptomining using energy-intensive activities.
  3. That companies striving to operate their business in line with the Paris Accord cannot call themselves sustainable if they trade and invest in cryptoassets that were mined using the Proof of Work method.

Last reviewed: 2022-10-13