Process Overview
Last updated
Last updated
To ensure the integrity and efficacy of Bitcoin Emissions Certificates, a rigorous and transparent methodology has been developed. This section outlines the systematic approach and procedures employed to audit, verify, and certify BECs.
The cornerstone of the BEC methodology is the meticulous collection and verification of data related to energy consumption in Bitcoin mining operations. This process begins with miners providing detailed records of their electricity usage, including monthly electricity bills, grid energy mix reports, and any onsite, behind-the-meter renewable generation data. These records are then subjected to a thorough audit by the Clean Incentive team under the supervision of the BEC Alliance (BECA). This certification process involves a multi-tiered review system where the data is analyzed and validated by different experts within the working group. Only after passing this rigorous review is a BEC issued to the miner.
To ensure accuracy, Clean Incentive cross-references the provided data with real-time monitoring systems and meters installed at the mining facilities. These systems offer granular insights into the energy consumption patterns, enabling the identification of the exact energy sources powering the mining rigs. The combination of historical records and real-time data forms a comprehensive energy profile for each mining operation.
Upon verification of the energy data, BECA certifies the clean energy attributes of the mining operation. The Clean Incentive team, including internal and external energy experts, review the data collected and issue a sustainability report along with one BEC certificate for each verified clean Bitcoin mined during the audit period. The certification process is done on a quarterly basis and certificates are issued directly to the miners. For each mining facility added to the platform, a historical audit will be done. Past certificates will be issued where applicable.
A key aspect of the BEC methodology is the integration of blockchain technology to enhance transparency and security, specifically through the use of ordinals and inscriptions on the Bitcoin blockchain. All verified energy data is inscribed onto the Bitcoin blockchain, creating an immutable ledger of clean energy usage. This ledger not only prevents tampering but also allows stakeholders to independently verify the claims made by miners.
Inscriptions are utilized to identify and tag each BEC. This ensures that certificates are generated only when the required criteria, governed by the BECA, is met. Each BEC represents a specific amount of Bitcoin mined using clean energy, akin to how Renewable Energy Certificates (RECs) correspond to megawatt-hours of clean electricity. The Bitcoin blockchain records the creation, ownership, and transfer of BECs, maintaining a transparent and traceable history of each certificate.
Once issued, Bitcoin Emissions Certificates (BECs) can be traded on Clean Incentive's BEC Marketplace, a platform designed specifically for the buying and selling of these certificates. This marketplace leverages the decentralized nature of the Bitcoin blockchain to facilitate transparent, secure, and efficient transactions.
The BEC Marketplace operates using the Bitcoin blockchain's infrastructure, utilizing ordinals and inscriptions to record and manage transactions. Each transaction on the marketplace is inscribed onto the blockchain, ensuring a permanent and immutable record of certificate ownership and transfer. This system enhances transparency and trust, as all parties can independently verify the authenticity and history of each BEC.
Miners who generate BECs by using clean energy can monetize their sustainability efforts by selling these certificates to ESG investors. Clean Incentive's BEC Marketplace provides a seamless platform for miners to represent the environmental attribute of their Bitcoin through BECs and investors to take ownership of those attributes for their own GHG accounting needs. Once ESG investors acquire BECs, they can utilize these certificates in various ways to enhance their sustainability profiles.
