COP28 & Bitcoin: Dawn of a New Crypto-Climate Alliance?

• COP28: Addressing Climate Change and the Crypto Twist
• Expectations and Skepticism
• Funding Climate Change Initiatives
• Crypto's role in Climate Change
• Bitcoin Mining Delegation at COP28

COP28: Addressing Climate Change and the Crypto Twist

The annual conference COP28 is underway in the United Arab Emirates (UAE), a leading global oil producer. This event brings together heads of states, including Pope Francis, despite his lung condition, to strategize on dealing with climate change issues. The urgency of the problem is underscored by a dramatic narrative focusing on the catastrophic implications of inaction.

Expectations and Skepticism

Regardless of the potential futility of the convention, there's an intriguing crypto perspective embedded within the chaos. Looking at COP's history, the first conference in 1995 urged governments to set concrete, legally-binding goals for lowering developed countries' emissions of greenhouse gases. Almost three decades on, these goals remain undefined.

The chairman of the event, Sultan Ahmed Al-Jaber, is the CEO of state oil company ADNOC, slated to increase oil production next year in line with the revised UAE OPEC+ quota. While Al-Jaber might possess the influence to hold the attention of other oil executives, ADNOC's aggressive expansion of international fossil fuel interests presents a conflicting interest.

Funding Climate Change Initiatives

It's universally recognized that combating climate change requires more resources. In 2009, donor countries agreed to generate $100 billion annually by 2020 to support developing countries in their shift away from fossil fuels. Although this goal was only achieved this year, a report from the International Energy Agency suggests that the actual yearly amount required is closer to $2.7 trillion.

Furthermore, policies aimed at reducing emissions are unpopular among voters, and could cause political backlash. Many national leaders are retracting climate promises due to internal pressures, such as UK Prime Minister Rishi Sunak's recent announcement of delays to the UK's decarbonization plans.

Crypto's role in Climate Change

Approaches to climate change should also consider technological advancements, such as Bitcoin$42,260 -0.64%, which can aid with decarbonization. Not too long ago, Bitcoin was heavily criticized for its environmental harm. However, research has debunked these claims and shifted the narrative. Bitcoin mining can economically support the construction and operation of renewable grids by acting as an adaptable energy consumer. Additionally, Bitcoin miners can reduce methane emissions from fossil fuel production by converting the gas into energy.

Bitcoin Mining Delegation at COP28

For the first time, COP28 will welcome a Bitcoin mining delegation. This official delegation marks a significant shift in narrative and reinforces Bitcoin's potential for climate change adaptation. Despite being early in its development, Bitcoin's technology is often misunderstood, and its use cases undervalued. However, its presence at a high-profile climate change conference indicates progress and hope for the future.

Edited by Jonathan Stoker