New Crypto Sustainability Coalition to Investigate Potential of Web3 Technologies in Fighting Climate Change

Published

21 Sep 2022

2022

Madeleine Hillyer, Media Relations and Public Affairs, mhll@weforum.org

Today the World Economic Forum launched a new coalition to investigate and highlight the potential of web3 technologies, such as crypto and blockchain, in accelerating action on climate change
Using blockchain tools, for example, can improve the transparency of the global carbon credits market while crypto-mining has potential to boost the business case for renewable microgrids through its decentralized, off-peak demand
The coalition, which features 30 organizations, aims to better inform governments on how they regulate web3 technologies and incentivize investment and research into their development
Read and learn more about the Sustainable Development Impact Meetings 2022

New York, USA, 21 September 2022 – The World Economic Forum today launched the Crypto Sustainability Coalition, which will investigate how web3 and blockchain tools can be leveraged to achieve positive climate action.

Web3, which includes technologies like blockchains, cryptocurrencies, and NFTs, has become a catch-all term for the vision of a new, better internet. Members of the coalition will explore the potential positive impacts these technologies can bring to environmental and social agendas.

The coalition launch is timely as there is an urgent need to support the decarbonization of cryptocurrency and ensuring the industry is part of the climate solution. Furthermore, there needs to be regulatory clarity that promotes web3 innovation, protects consumers, and improves financial inclusion.

“I am excited about the work we are expecting from the Crypto Sustainability Coalition. An important and unique aspect of web3 is that it uses technology to support and reward direct community engagement and action. This means we can coordinate the work of many individuals directly with one another, enabling collective action without centralized control – a powerful accelerator for grass roots action,” said Brynly Llyr, Head of Blockchain and Digital Assets, World Economic Forum.

The Crypto Sustainability Coalition is a public-private initiative hosted by the World Economic Forum and comprises 30 partners. It is convening working groups to tackle three specific issues:

Energy usage – this working group will analyse the crypto industry’s consumption of energy and materials to build a clearer picture of its impacts on climate and nature.
Web3’s potential for climate action – this working group will investigate ways in which web3 innovations could tackle challenges facing the low-carbon transition at the pace required to hit the Paris Agreement’s targets. For example, the decentralized nature of crypto-mining and its ability to operate at off-peak times may provide a new business model for utilities and investors looking to develop renewable energy microgrids.
“On-chain” carbon credits – members of the coalition believe blockchain-based carbon credits could address current flaws in global carbon markets, including: the lack of transparency around carbon offsets for either providers or buyers; the failure of markets to remove carbon emissions at the scale and pace required; and the inability of millions of the world’s smallholder farmers, forest stewards and Indigenous communities to participate in or benefit from carbon credit markets.

The Crypto Sustainability Coalition will investigate, collate and highlight industry standards, best practices and examples of tangible action that attest to how web3 technologies can support communities most vulnerable to the impacts of climate change. The coalition’s wider aim is to foster a broad education campaign on what web3’s potential and capacity look like, to better inform governments on how they regulate these technologies and incentivize investment and research into their development.

The coalition’s partners include Accenture, Avalanche, Avatree, CC Token, Circle, Climate Collective, CRADL, Crypto Council for Innovation, Emerge, Energy Web Foundation, eToro, EY, Flowcarbon, Heifer International, KlimaDAO, Lukka, NEAR Foundation, Nori, PlanetWatch, Plastiks, Rainforest Partnership, Recykal, ReSeed, Ripple, Solana, Stellar Development Foundation, STEWARD, Sustainable Bitcoin Protocol, The Global Brain, Toucan Protocol, University of Lisbon, and Zero Labs.

The new coalition is part of the Crypto Impact and Sustainability Accelerator (CISA), a grant-funded initiative launched by the Forum in January 2022 with a mission to encourage a greater understanding of the environmental, social and governance (ESG) impacts of crypto technologies.

For more information on the Crypto Sustainability Coalition and how to join, contact cisa@weforum.org

Notes to editors:
Learn more about the Crypto Impact and Sustainability Accelerator (CISA) and the Forum’s Blockchain Platform
Learn more about the Sustainable Development Impact Meetings 2022
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All opinions expressed are those of the author. The World Economic Forum Blog is an independent and neutral platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.