Gemini, a major cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is responding to Bitcoin’s (BTC) environmental issue by purchasing carbon credits.
On Thursday, the company announced its long-term initiative to incorporate climate-conscious measures into its business, launching a collaboration with Climate Vault, a nonprofit founded at the University of Chicago.
Through the initiative, Gemini plans to purchase carbon credits for nearly 350,000 metric tons of carbon to offset non-renewable energy consumed by Bitcoin miners and help decarbonize Bitcoin on the Bitcoin network.
According to the announcement, the partnership will have Gemini purchase carbon permits directly from government-related cap-and-trade markets and erase them from circulation. In doing this, Gemini prevents other market players from using these carbon credits to emit CO2 and thus cuts the overall supply of carbon permits. According to Gemini, the resulting reduction in allowed emissions is equivalent to almost 1 billion miles driven by a passenger car.
Gemini will keep working with Climate Vault in an ongoing campaign to cut and ultimately remove the carbon emissions of the Bitcoin that Gemini custodies, the announcement notes. Gemini has also allocated $1 million through the Gemini Opportunity Fund to support sustainability-focused companies and projects as part of its environment-conscious program, Gemini Green.
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“As Bitcoin emerges as a dominant store of value, it’s imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonizing of Bitcoin,” Gemini CEO Tyler Winklevoss said.
Earlier in June, crypto-focused hedge fund One River Digital said that over 75% of assets in its Bitcoin private fund committed to shift to its new carbon-neutral share class in a move to offset Bitcoin’s environmental impact.