The EU will collect data proving that cryptocurrency PoW mechanisms seriously harm the environment and plans to develop sustainability standards

Odaily News The European Commission on Tuesday released a tender contract worth 800,000 euros (approximately $842,000) aimed at mitigating the “significant harm” caused by cryptocurrencies to the environment. The study, which will close out of competition on November 10, will set standards to be incorporated into potential future EU policies to curb the impact of cryptocurrencies on climate change and develop a new energy efficiency label for blockchain. The European Commission said in the tender document that there is “evidence that crypto-assets can cause significant damage to the climate and environment” and could undermine EU targets to cut greenhouse gas emissions, suggesting that new sustainability standards laws may be adopted in the future. EU lawmakers are concerned about the energy-intensive PoW consensus mechanism that underpins blockchains like Bitcoin. The EU study, which will be completed within a year, will examine green issues such as cryptocurrencies’ use of water, waste, natural resources and energy. (CoinDesk)