The UK-based crypto platform Zumo has been awarded funding from the UK government as part of a drive to continue crypto decarbonisation initiatives.
According to reports, the Edinburgh-based crypto platform, has completed its Zero Hero pilot project - a live trial to buy Renewable Energy Certificates (RECs, where 1 REC equals 1 MWh of green electricity) to make up for the electricity usage of bitcoin bought via the Zumo app.
Throughout the pilot period, £1.5mn bitcoin has been covered by Zero Hero REC purchases, with a total of 850 megawatt-hours (MWh) of electricity compensated through the programme. This is enough energy to drive an electric vehicle for over three million miles, the platform says.
Zumo has also found that public opinion is appreciative of the initiative, after polling revealed that 84% of customers believe the issue of environmental sustainability in crypto is a critical subject the sector should be addressing. 84% of respondents also agreed that they are more likely to use a crypto wallet offering built-in features that help reduce crypto’s environmental impact.
RenewableCrypto project supports the Crypto Climate Accord
Zero Labs, a partner to Zumo, has been awarded a grant by Innovate UK, the UK’s national innovation agency, to drive research into the decarbonisation of crypto. Commencing shortly, the RenewableCrypto project will see Zumo working with Zero Labs to find practical ways in which wallets and platforms can scale the use of renewable energy.
The RenewableCrypto project will serve as a global showcase supporting the Crypto Climate Accord, to which both Zumo and Zero Labs are signatories, and work to demonstrate technology-based climate leadership from the UK. Its core aim is to set a new example not only in the crypto industry but also the wider financial services sector around the direction the sector needs to move - taking climate action and proving it.
Zumo decarbonisation initiative report
The findings of Zumo’s research are are presented in Zumo’s recent report entitled ‘Decarbonising Crypto: Towards Practical Solutions’. The study exames the outcomes of the programme and presents several practical answers for crypto solution providers using best attrition methodology and best practice approaches to renewable energy procurement.
The study references, particularly, that REC markets should improve sophistication in efficiency if they are to meet the current requirements of net zero strategies. Critically, crypto’s emerging electricity-focused sector has a distinct opportunity to disrupt the marketplace and generate new demand.
Future goals in crypto decarbonisation for Zumo
Speaking about the UK government funding and Zumo’s decarbonisation strategy, Doug Miller, Co-Founder, Zero Labs, said, “Zumo is demonstrating leadership in the Crypto Climate Accord (CCA) community in two ways: leading dialogues about how to estimate the energy use of BTC holdings and procuring clean energy to power Zumo platform customers’ holdings in a verifiable way. Zero Labs is thrilled to support Zumo with scaling a solution across its growing customer base to increase demand for clean energy around the globe and convert the wider crypto industry into a newfound source of demand for clean energy in voluntary markets.”
Kirsteen Harrison, Environmental and Sustainability Adviser, Zumo, continued, “The results of our Zero Hero pilot project are hugely encouraging, showing both what is possible and a significant appetite from customers for clean energy solutions. But this is just the beginning, and the story can only continue through the collaboration of all market participants – miners, platforms and end users – within the crypto sector. We hope that our new report will help continue to shift the dial from talk towards action.”
She added, “Along with our partners at Zero Labs, we’re aiming to lead this charge and explore new, digital-led solutions that remove practical barriers to voluntary renewables procurement and verifying green credentials. With electricity being the most significant part of crypto’s carbon footprint, we have a unique opportunity as a sector to rapidly decarbonise.”
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