The company announced on Tuesday that its goal is to become a net-zero carbon net contributor to operations by 2030, and hopes to help promote the adoption and efficiency of renewable energy in the Bitcoin ecosystem.
Square said that it has planned a path to achieve a net-zero carbon goal by reducing its own carbon footprint and expanding its proven carbon removal product portfolio, and Square plans to launch the product in the first quarter of 2021.
The Bitcoin Clean Energy Investment Initiative is part of Square's extensive efforts to support clean energy.
The company has also cooperated with Watershed, which powers the climate programs and reduces its carbon footprint.
"We believe that cryptocurrency will eventually be powered completely by clean power, eliminating its carbon footprint and driving adoption of renewables globally," said Square CEO Jack Dorsey, who is also the founder of Twitter. "Published estimates indicate bitcoin already consumes a significant amount of clean energy, and we hope that Square’s investment initiative will accelerate this conversion to renewable energy."
In the Bitcoin mining industry, hydropower has always been a promoter, especially in China and Canada, both of which are able to provide better electricity prices for industries near certain hydroelectric dams. According to the latest report on the global mining ecosystem released by CoinShares at the end of 2019, 73% of the global Bitcoin mining business comes from the renewable energy system. In addition, the report estimates that miners are still mainly concentrated in areas that use cheap hydropower.
This report directly contradicts various media reports on the environmental impact of cryptocurrency mining over the years, and implies that most mining operators are using green energy. In addition, the mining industry's use of some of these resources directly provides solutions for the excess or wasted energy produced by hydropower plants.
Christopher Bendiksen, head of research at CoinShares, talked about the general trend in cryptocurrency mining. First, Bendiksen emphasized the cruel nature of the ecosystem and focused on the profitability of the moral considerations surrounding green energy: it happens that the cheapest energy on earth is renewable energy. "Hydropower energy producers and natural gas and oil companies seem to be the most advantageous energy sources in the mining space. Bendixson also supports this:
"I installed my panels during 2018. The profits had been two fold. Using energy from my panels I save 75% of the energy cost. But also when the energy price is low which it has been during 2020, currently I get 1,300% more by mining Bitcoin than selling the energy to the grid. I believe energy producers will wake up to this fact."