Bitcoin mining bans may increase carbon emissions by 5.6%

A recent research paper has suggested that banning Bitcoin (CRYPTO:BTC) mining could inadvertently lead to higher global carbon emissions in certain regions. 

The study indicates that prohibiting mining activities in areas with significant renewable energy resources, such as Canada, Norway, or El Salvador, might drive operations to countries that rely more heavily on fossil fuels, like Kazakhstan, Russia, or China.

Conducted by researchers from the not-for-profit group Exponential Science and University College London, the paper has not yet undergone peer review.

Bitcoin mining, which operates on a proof-of-work blockchain model, requires substantial energy for computational processes. 

This energy consumption has prompted calls for bans on mining to reduce fossil fuel usage and greenhouse gas emissions.

According to the report, a ban on Bitcoin mining in Canada could result in a 5.6% increase in global mining emissions, releasing an additional 2.5 million tonnes of CO2 into the atmosphere. 

Canada is one of the top Bitcoin miners globally and utilizes renewable energy for over 17% of its total energy supply.

In contrast, a nationwide ban in the United States could lead to a 0.64% rise in emissions, contributing an estimated 287,000 tonnes of greenhouse gases. 

However, the environmental impact varies significantly by state.

The researchers noted that while banning mining in fossil fuel-heavy states like Kentucky could reduce emissions, similar actions in states with abundant renewable energy sources like New York could have the opposite effect.

A European Union-wide ban was estimated to increase emissions by 523,000 tonnes.

The authors of the paper posited that miners would likely relocate to countries with lower energy costs to maintain profitability.

While some bans may be beneficial for emission reductions—such as one in Kazakhstan, which could decrease network emissions by approximately 7.6%—the researchers advocate for “alternative regulatory approaches.”

These alternatives include incentivizing renewable energy use for mining operations and offering tax breaks to attract miners to low-carbon jurisdictions.

At the time of reporting, the Bitcoin (BTC) price was $68,060.41.