UK lawmakers have called for more regulatory power to address the growth of green economic hygiene, a deceptive practice in which the company overestimates or fabricates the use of green energy.
A report from the House of Commons Treasury Across Policy Committee called on the UK government to clarify the definition of environmentally conscious investing and to consult on the potential use of green labels on financial products. The report notes that green financial investment requirements are often overrated and may not meet customer expectations:
“In some cases, it is clear that the designations or descriptions of the” green “or” climate-related “indicators do not match the legitimate expectations of consumers of what they usually think.
The call to gather lawmakers came on the same day that Twitter CEO Jack Dorsey and Tesla CEO Elon Musk agreed that Bitcoin (BTC) could become completely green and undermine the image as a technology dangerous to the environment.
Musk and Dorsey responded to a new report from Square (the latter being the CEO) and Ark Invest, which is looking into Bitcoin’s green energy potential. The report, titled “Bitcoin – The Key to a Rich Future with Clean Energy,” claims that when combined with renewable energy storage, the energy-intensive nature of Bitcoin can be a solution to the problem of losing renewable energy often in times of plenty.
Investors’ desire to work only with environmentally conscious companies has led to an increase in investment in ESG, which sees environmental, social and corporate governance factors as key factors in making sustainable investments.
UK-based mining company Argo Blockchain CEO, Peter Wall, told Cointelegraph that he has seen an increase in ESG conversation in the mining industry in recent months. Wall noted, however, that not all of this appears to be true:
“There has definitely been a lot of talk about ESG in the cryptocurrency mining industry in recent months, which is cool and moves things in the right direction. However, talking without work is not enough and can lead to ridicule.”
Argo is a Bitcoin mining company that uses renewable energy sources in the form of hydropower in various mining operations in Canada. The company’s share price is now 4000% higher than it was at this time last year, and it recently bought 320 acres of land in Texas to expand its mining operations in the United States.
Wall agreed to recent calls from UK lawmakers to force companies to reassert their green energy requirements:
“We think an important step in preventing the green slip is making sure that companies can validate the claims they make and demonstrate that they are really making an effort to positively impact the environment, and we do.”
Wall said that demand from environmentally conscious investors could naturally speed up the process as clearer definitions would be applied to green labels.
“Reducing the impact of climate change is critical, so it is important to ensure that companies do their best to reduce greenhouse gas emissions and their impact on the environment. Investor demand can contribute to this, and clear guidance is needed to enable companies to invest in cleaner technologies. , Wall said.
Not everyone agreed that Bitcoin’s future was as green as it seemed. According to the BBC, Bitcoin critic and author David Gerrard described the Square / ARC article as “a satirical money laundering exercise”.
“The truth is that bitcoins run on coal,” Gerrard told the BBC, referring to the recent coal mining accident in Xinjiang, China, which temporarily undermines bitcoin miners’ ability to produce new coins.
Bitcoin’s dependence on fossil fuels from China is undeniable, but compared to the resource consumption of the current monetary system, its impact on the environment appears less scandalous.