Gemini, a prominent player in the cryptocurrency landscape, has committed to offsetting its carbon emissions in response to growing concerns about bitcoin’s environmental impact.
To achieve this, the firm has partnered with Climate Vault, a non-profit organization established at the University of Chicago. Gemini is contributing to the acquisition of carbon permits aimed at offsetting approximately 350,000 metric tons of carbon emissions. These permits will counterbalance the non-renewable energy used by miners in the Bitcoin Network, which is essential for securing the bitcoins held in custody by Gemini.
The environmental ramifications of bitcoin mining have been a topic of discussion for some time, but the matter gained heightened attention recently when Tesla, led by Elon Musk, reversed its decision to accept bitcoin for vehicle purchases, citing environmental concerns.
Through its collaboration with Climate Vault, Gemini is purchasing permits directly from government-regulated cap-and-trade markets, effectively removing them from circulation. This proactive approach contributes to a significant reduction in permissible emissions, equivalent to the carbon footprint of nearly a billion miles traveled by an average passenger vehicle.
Moreover, the Winklevoss-led firm is investing $1 million to support organizations, initiatives, and nonprofits dedicated to enhancing sustainability within the cryptocurrency sector.
“As bitcoin solidifies its position as a leading store of value, integrating sustainability practices is essential for the benefit of future generations. We are excited to partner with Climate Vault to mitigate our reliance on non-renewable energy and help decarbonize bitcoin,” stated Tyler Winklevoss, CEO of Gemini.