The validation process of Bitcoin's blockchain requires vast amounts of electricity. We demonstrate a methodology for estimating the associated carbon footprint based on IPO filings of major hardware manufacturers, insights on mining facility operations, mining pool compositions, and localization of IP addresses. Our findings provide empirical insights into the carbon footprint of Bitcoin. These results, combined with the risk of collusion and concerns about control that we discuss, may help policy-makers in setting the right rules for a sensible adoption of blockchain technology.

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Global greenhouse gas emissions need to reach net-zero around mid-century to limit global warming to 1.5 °C. This decarbonization challenge has, inter alia, increased the political and societal pressure on companies to disclose their carbon footprints. As a response, numerous companies announced roadmaps to become carbon neutral or even negative. The first step on the journey towards carbon neutrality, however, is to quantify corporate emissions accurately. Current carbon accounting and reporting practices remain unsystematic and not comparable, particularly for emissions along the value chain (so-called scope 3). Here we present a framework to harmonize scope 3 emissions by accounting for reporting inconsistency, boundary incompleteness, and activity exclusion. In a case study of the tech sector, we find that corporate reports omit half of the total emissions. The framework we present may help companies, investors, and policy makers to identify and close the gaps in corporate carbon footprints.