The European Commission’s financial services directorate has announced a tender for a model-based approach to address the environmental impact of crypto-assets.
The Commission is increasingly concerned about the negative environmental effects stemming from the significant power consumption associated with the crypto industry. According to the tender document, “The rising demand for crypto-assets and the expansion of crypto-mining, including within the EU, could hinder the EU’s efforts to meet its climate and sustainability goals, in accordance with the Paris Agreement.” The initiative aims to enhance the EU’s capacity to assess and mitigate the impact of crypto-mining while developing specific sustainability standards.
The objective of the project is to create a methodology to measure the climate and environmental impact of the consensus mechanisms used by crypto-assets. Additionally, it aims to evaluate the feasibility of establishing environmental sustainability standards, anticipating future financial legislative measures.
The estimated total value of the tender is €800,000, with a submission deadline for applications set for 10 November.