New research suggests that banning Bitcoin mining in eco-friendly nations could unintentionally increase global carbon emissions. Researchers from Exponential Science argue that government policies in countries with greener energy sources might do more harm than good if they force mining operations to relocate to regions with higher carbon footprints.
“Well-intentioned policies may lead to unintended consequences, notably the redirection of mining activities to regions with higher carbon intensities,” the researchers said in a recent report reviewed by Cointelegraph.
How Bitcoin Mining Bans Could Backfire
The report highlights that not all Bitcoin mining is the same, as countries vary widely in their energy sources and environmental impacts. If nations with lower emissions, such as those relying on nuclear or hydro-electric energy, ban Bitcoin mining, the activity could move to more carbon-intensive regions, ultimately worsening global carbon emissions.
“A mining ban in countries like Canada, which extensively uses nuclear and hydro-electric energy, would have significant negative environmental repercussions,” the researchers noted. For example, a ban on mining in Canada could increase global Bitcoin network emissions by 5.6%, or around 2.5 million tonnes of CO2 annually.
This phenomenon, known as “carbon leakage,” occurs when environmentally friendly policies in one country push carbon-intensive activities to other regions, inadvertently increasing overall global emissions.
Manitoba Extends Pause on Crypto Mining
In April, Cointelegraph reported that the Canadian province of Manitoba extended its moratorium on new Bitcoin mining requests to its government-owned utility, Manitoba Hydro. The extension applies to any new crypto mining requests or infrastructure agreements that had not yet been executed. This move is part of ongoing efforts to manage the growing demand for electricity from cryptocurrency operations in the region.
The pause in Manitoba reflects a broader trend in countries with abundant renewable energy sources, where governments are grappling with the economic and environmental impacts of Bitcoin mining.
Russia’s New Crypto Mining Framework
While some countries are pausing or contemplating bans, Russia is moving in a different direction. On November 1, Russian President Vladimir Putin signed a series of laws establishing a regulatory framework for crypto mining in the country. Though the new legislation defines key legal terms and creates guidelines for the industry, experts caution that it does not fully legalize crypto mining. Instead, it introduces a structure of controls and restrictions for the sector.
Despite Russia’s regulatory progress, concerns remain about how these new laws will impact the broader crypto mining landscape and the environment.
The Bigger Picture
As Bitcoin mining continues to grow worldwide, the environmental impact of where and how it is conducted remains a pressing concern. While bans in certain countries may seem like a step toward reducing emissions, researchers warn that these policies could have the opposite effect by pushing mining to regions with higher carbon footprints.
By focusing on cleaner, more efficient energy solutions for Bitcoin mining, nations can avoid exacerbating global carbon emissions and contribute to a more sustainable future for cryptocurrency operations.
