Introduction
Last updated
Bitcoin Emissions Certificates
Last updated
Bitcoin Emissions Certificates (BECs) represent an innovative approach to quantifying and attributing greenhouse gas (GHG) emissions within the Bitcoin network. As organizations increasingly integrate Bitcoin into their operations and balance sheets, the need for credible, transparent carbon accounting solutions has never been more pressing. By issuing BECs based on a miner’s daily share of the Bitcoin network’s hashrate—alongside the miner’s verified emissions factors—we aim to create a scalable, auditable mechanism for attributing and ultimately reducing Bitcoin’s carbon footprint.
Traditional GHG protocols do not yet offer a standardized method for reporting emissions associated with cryptocurrency holdings or transactions. In particular, Scope 3 (value-chain emissions) calculations remain challenging due to the decentralized and global nature of Bitcoin mining. BECs address this gap by building on well-established principles from market-based frameworks in other sectors—such as renewable energy certificates (RECs) and book-and-claim systems—adapting them to the unique requirements of proof-of-work mining.
BEC issuance is tied to the daily average hashrate. For each day, a miner’s proportional share of the network hashrate determines how many BECs that miner is eligible to receive. This ensures that emission allocations align with actual network participation over time.
A BEC signifies the emissions associated with holding one (1) BTC for one (1) day, referred to as a BTC-day. This time component provides the needed resolution to accurately account for the network emissions associated with holding Bitcoin.
Each miner’s emissions factor is based on the lower of its location-based or market-based Scope 2 emissions. In other words, if the miner achieves lower emissions via contractual instruments (e.g., renewable PPAs or RECs), that cleaner factor is passed on to the BEC. Conversely, if location-based accounting proves lower, the BEC methodology will reflect that. Once total emissions for the audit period are determined, that figure is divided among all BECs issued for that miner’s operation during the same period.
BECs are overseen by a dedicated, multi-stakeholder governance body called the BEC Alliance (BECA). BECA serves as a neutral forum where Bitcoin miners, corporate BTC holders, environmental NGOs, and carbon-accounting experts can review, refine, and enforce the BEC methodology. This alliance model ensures the framework evolves with the Bitcoin ecosystem while adhering to high standards of transparency and integrity.
To enhance transparency, every BEC issuance and retirement event is inscribed on the Bitcoin blockchain as a data record. However, the BEC instruments themselves are centrally managed by the registry. They are not digital assets or tokens on the Bitcoin network. This hybrid approach combines the immutability of Bitcoin inscriptions—making certificate activity publicly auditable—with the practical advantages of a centralized system for direct oversight, stakeholder feedback, and robust dispute resolution.
This whitepaper outlines:
Methodology: How BECs are calculated, including the daily hashrate mechanism, emissions factor allocation, and our commitment to established GHG accounting best practices.
Governance & Stakeholder Engagement: The structure and responsibilities of the BEC Alliance (BECA), along with the processes for public commentary, annual methodology reviews, and pilot transactions.
Implementation: Details of our registry software architecture, on-chain inscription strategy, retirement rules, and alignment with broader carbon reporting frameworks.
Pilot Phase: Our initial set of pilot transactions between green miners and corporate Bitcoin holders, which will validate the BEC concept and gather real-world data to refine the system before broader adoption.
The Bitcoin Emissions Certificate framework aspires to drive transparency, accountability, and decarbonization in Bitcoin mining and custody. By merging daily hashrate-based allocation with scope 2 emissions data and robust governance, BECs provide a credible tool for corporate ESG reporting, investor due diligence, and broader environmental stewardship. We invite all stakeholders—miners, institutional holders, policymakers, NGOs, and individual enthusiasts—to review the methodology, participate in the BEC Alliance, and join our pilot transactions. Together, we can shape an accountable framework that aligns the evolution of Bitcoin with global climate objectives.
