C L I M A T E A N D E N E R G Y I M P L I C A T I O N S O F
C R Y P T O - A S S E T S I N T H E U N I T E D S T A T E S
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Summary and Recommendations
The U.S. National Climate Assessment and the Intergovernmental Panel on Climate Change
(IPCC) show that reducing global anthropogenic greenhouse gas (GHG) emissions to net-zero by
mid-century will prevent the most severe damages to human health, ecosystems, and
infrastructure. These climate-driven damages include deaths caused by: heat waves; loss of
forests, homes, and infrastructure from increasing wildfires; flooding and extreme weather
events; property loss; damage to roads, bridges, public transit systems and the energy system;
inundation of coastal areas by sea level rise and storm surges; droughts; damage to crops; and
other harms to the ecosystems that sustain people.2,3 The damages intensified by climate change
are not borne equally; underserved communities are often disproportionally burdened with the
most severe impacts from climate change.4 Climate change is expensive: in 2021, climate
disasters cost the United States $145 billion.5 Climate change also poses risks to taxpayers, the
federal budget, and federal facilities; without increased action, climate change could reduce U.S.
gross domestic product by 3% to 10%, and U.S. federal revenue by 7% annually by the end of
the century.6 The United States is committed to combatting the climate crisis and reducing GHG
emissions by 50% to 52% below 2005 levels by 2030, achieving a carbon pollution-free
electricity grid by 2035, and reaching net-zero emissions no later than 2050, all while prioritizing
environmental justice.
At the same, the use of digital assets based on distributed ledger technology is expanding. Digital
assets are a form of value, represented digitally. As an emerging technological innovation, digital
assets have provided some benefits and value for some U.S. residents and businesses, and have
the potential for future benefits with emerging uses. Crypto-assets are digital assets that are
implemented using cryptographic techniques, and have a total current global market
capitalization of nearly $1 trillion. However, some crypto-asset technologies currently require a
considerable amount of electricity for asset generation, ownership, and exchange. Electricity
usage from digital assets is contributing to GHG emissions, additional pollution, noise, and other
local impacts, depending on markets, policies, and local electricity sources. Depending on the
energy intensity of the technology used, crypto-assets could hinder broader efforts to achieve
net-zero carbon pollution consistent with U.S. climate commitments and goals.
The U.S. government has a responsibility to ensure electric grid stability, enable a clean energy
future, and protect communities from pollution and climate change impacts. This report explores
the challenges and opportunities of crypto-assets for energy and climate change issues in the
United States, and answers four main questions asked in Executive Order 14067:
1. How do digital assets affect energy usage, including grid management and reliability,
energy efficiency incentives and standards, and sources of energy supply?
2. What is the scale of climate, energy, and environmental impacts of digital assets relative
to other energy uses, and what innovations and policies are needed in the underlying data
to enable robust comparisons?
3. What are the potential uses of blockchain technology that could support climate
monitoring or mitigating technologies?