Crypto Tech Firm BlockFills to Offer ESG Credits to Miners

The firm said it is working with Isla Verda Capital to sell carbon offsets to miners who get their power from renewable energy sources.

AccessTimeIconSep 13, 2022 at 5:14 p.m. UTC
Updated May 11, 2023 at 6:47 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto financial-services and technology firm BlockFills is working with Isla Verde Capital to offer crypto miners environmental credits to help them offset their carbon emissions.

Crypto miners, and those on the Bitcoin network in particular, have been facing severe criticism for their carbon footprint. The industry consumes as much energy as some small countries, not all of which is renewable, which has irked environmentalists and authorities alike.

  • Bitcoin Miner Bitfarms Warns of Default
    04:20
    Bitcoin Miner Bitfarms Warns of Default
  • Stronghold Digital CEO on State of Bitcoin Mining Amid FTX Fallout
    07:43
    Stronghold Digital CEO on State of Bitcoin Mining Amid FTX Fallout
  • Bitcoin Is Trading With the Markets Right Now ‘for Better or for Worse,’ Expert Says
    05:43
    Bitcoin Is Trading With the Markets Right Now ‘for Better or for Worse,’ Expert Says
  • Solar-Powered Bitcoin Miner Aspen Creek Raises $8M Despite Bear Market
    06:45
    Solar-Powered Bitcoin Miner Aspen Creek Raises $8M Despite Bear Market
  • Through the partnership with Isla Verde, which specializes in such offerings, BlockFills will sell carbon emissions offsets and renewable energy credits (REC) and other carbon accounting instruments to miners, according to a Tuesday press release. RECs are certificates that represent the production of electricity from renewable sources.

    "Miners are seeking sustainable solutions to their challenges in the energy industry, while also fighting public scrutiny over their consumption and carbon footprint,” Neil Van Huis, a partner and director at BlockFills, said in the press release.

    Isla Verde co-Chief Investment Officer Ronnie Virissimo said that "it is becoming more imperative that all groups, particularly those on the blockchain, are proactive about reporting on and lowering their carbon footprint, with greater potential for regulation and rules to be put in place."

    Elliot David, head of strategy and partnerships at Sustainable Bitcoin Protocol, a company that is developing an on-chain product for miners looking to certify their energy use, said that "unless a miner is holding the RECs attributed to their power consumption, they can't technically claim that they're using clean energy. As a result, we've seen miners take a wide range of existing approaches" from nothing at all to buying high-quality RECs.

    Last week, the Biden administration's office for technology and science policy released a report that called on standards to be set for the industry so that its impact on the environment is limited.

    UPDATE (Sept. 13, 2022 7:45 p.m. UTC): Adds quote from David.



    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.