US Crypto Miners will have to reduce CO2 emissions

US crypto miners will be required to reduce their carbon dioxide emissions if lawmakers adopt the “Clean Cloud 2025” decree. The bill, crafted by Senators Sheldon Whitehouse and John Fetterman, proposes setting quotas on CO2 emissions for enterprises using over 100 kilowatt-hours of electricity, which are engaged in digital asset mining and AI software processing. By the end of 2025, the parliamentarians propose setting a limit, reducing it by 11% annually, aiming for zero emissions by 2035.

Data centers can assist companies that produce clean energy, but they currently collaborate with firms that burn fossil fuels, leading to higher electricity costs for individuals. The Senate Committee on Environment and Public Projects emphasizes that adopting the Clean Cloud 2025 decree would protect the environment and ensure businesses contribute to this cause.

Mining farms exceeding the CO2 emission quotas could face fines to compel them to meet the requirements. The funds collected through these fines are intended to be granted to municipalities to finance startups operating in renewable energy generation, primarily focusing on wind and solar power plants.

According to the International Monetary Fund, last year, US crypto miners and data centers serving AI developers consumed 2% of the country’s electricity, generating 1% of CO2 emissions. By 2025, these facilities are expected to increase their capacity by 75%, consuming 3.5% of the nation’s electricity. Consequently, they will be responsible for emitting 1.75% of carbon dioxide. Considering this data, IMF experts suggest implementing measures to regulate CO2 emissions and minimize the environmental impact of cryptocurrency mining and artificial intelligence industries.