10 INDUSTRIES THAT POLLUTE MORE THAN ALL OF CRYPTO COMBINED
In tandem with the recent NFT boom, most negative press present in the space has been based around the supposed “negative environmental impact” of NFTs due to the current proof of work system that the Ethereum blockchain uses. So what does that mean? Currently, when any transaction is processed on the Ethereum blockchain, requests go out to several computers who compete to solve equations to process transactions and, in return, receive a small fee called a “gas fee.” So what is the problem with this? Critics voice the concern that the proof of work system is unsustainable because the process wastes electricity in sending requests to multiple mining computers instead of just one. This is a fair point, but the significance of these transactions in the grand scheme of things is incredibly minor. It should be mentioned that “Satoshi Nakamoto”’s 2008 white paper proposed “a peer-to-peer electronic cash system.” And that Proof of Work was and is essential to the decentralized validation of transactions. Though as we see alternative decentralized blockchains emerge, such as Cardano, we begin to see options of what decentralized POS systems might look like
Remember, Ethereum is not the only blockchain out there. Projects run on blockchains such as Cardano, Polygon (Matic), or Tezos use a system called Proof of Stake which, while slightly less decentralized, essentially negates all environmental issues present in Proof of Work, allowing for just one computer to solve the algorithm necessary to process transactions. And the even better news is that Ethereum, the most widely used blockchain for decentralized applications (dapps), is planning on transitioning to Proof of Stake by the end of summer 2021. This will result in much smaller “gas fees,” incredibly quick processing times, and virtually no environmental impact. If you would like to see this process in action, you can set up a Temple wallet and buy some Tezos very easily and try out a transaction on a platform such as Hic Et Nunc to see how painless this process is. But I digress. In the spirit of sustainability, journalism, and crypto; I would like to present a formal list of 10 industries that pollute significantly more than not just Ethereum, but the entire world of NFTs and DeFi combined.
So to accomplish this, let’s aggregate the current “facts” surrounding the supposed “environmental impact” of crypto. First, the most cited fact at the moment, according to the CATO institute is that the “electricity now consumed by the Bitcoin network, at 73 TWh per year, at last count, rivalling the amount consumed by countries like Austria and the Philippines.” This, considering that bitcoin is only used by around 1% of the world’s population can initially sound quite grim. Furthermore, A paper in 2018 from Ohio’s Oak Ridge Institute found that the energy took to mine one dollar’s worth of bitcoin “took 17 megajoules of energy, more than double the amount of energy it took to mine one dollar’s worth of copper, gold and platinum.” These kinds of comparisons are ludacris as the process of electronically processing massive dollar transactions, and the process of mining physical ore is in no way the same. Not to mention that this comparison is laughable considering the traditional mining industry is the world’s least sustainable industry (read on to see why). Finally, another study from the UK published in 2020 stated that the “computer power required to mine Bitcoin quadrupled in 2019 compared with the year before.” This, along with the other examples, is just another decontextualized, inflammatory statement, that in no way measures the actual rise of the environmental impact of the industry. Yes, Bitcoin most definitely 4xed, at least, from 2019 to 2020. Groundbreaking journalism, truly. These kinds of figures coming from reputable outlets ranging from The Guardian to Wired are unfortunate and ultimately misleading to people looking to learn more.
Bitcoin aside, one of the current major case studies being shared around the NFT space as a token of NFTs being unsustainable is a project started by artist Memo Akten. Memo decided to trace the blockchain activity associated with 18,000 different NFT artworks. He found that the process went far beyond minting and included the other transactions present in the space (listing, bidding, fast flips, auctions, etc). This ‘revelation’ led Akten to create Crypto art.WTF—a gamified website that selects crypto art at random and presents the viewer with a rough approximation of the energy use and emissions associated with it. So apart from attacking artists at random, regardless of their socioeconomic background, this site is apparently meant to be educational. However, is calculating the supposed carbon emissions of our every virtual action the way to do this? Should we start monitoring all of our energy expenditures? According to John Crain, the CEO of SuperRare:
“It’s flawed to equate blockchain transactions with carbon emissions, the website sensationalizes the issue by trying to attach a specific energy use figure number to an artwork. There is a whole ecosystem of people who are creating emissions, so I don’t think it’s fair to the artists to say that you created this amount of CO2.” And what of the carbon emissions associated with the traditional, physical art world? Everything from the flights and shipping of sculptures in crates to the gallery lights and security systems.”
This is a very good point! We have to remember that we still all do use digital intermediaries, such as Visa and Mastercard, in most of our daily lives. And this intermediation is not costless. According, again to the CATO institute: “Payment networks typically have large corporate structures and expend large amounts of resources to facilitate transactions. Mastercard, which as of 2016 accounted for 23 percent of the credit card and 30 percent of the debit card market in the U.S., employs more than 13,000 staff worldwide. Its annual operating expenses reached $5.4 billion in the fiscal year 2017. Its larger competitor Visa had running costs of $6.2 billion.” These costs shouldn’t be made invisible when comparing such a new and emerging industry such as crypto which could actually do a lot of good in improving the environmental sustainability of the global payment system.
Finally, before getting into the larger offending industries at hand, it should be noted that instead of focussing on the problem, we should be seeking solutions. If we require exponentially more energy to power our exponentially more digital lives, we should be investing in more sustainable mass-market options of electricity production. For instance, Canada uses hydroelectric power to generate 59 percent of its electricity. According, once again, to the CATO Institute: “In the crypto-favourite province of Quebec, 95 percent of power is hydroelectric, and prices are particularly low. While the overall environmental impact of hydropower is contested, there is agreement that its carbon footprint is a fraction of those of gas- and coal-fired plants.” If more countries took initiatives such as this to promote the use of solar panels, wind and water turbines, and geothermal energy solutions; this conversation might even become mute. Now, in comparison with these case studies and examples, let’s take a look at some of the industries that actually are the leading offenders of unsustainable practices and write some negative press about them for a change:
#1: The Mining Industry.
Despite the irony, the world’s largest environmental offender isn’t crypto-miners, but the traditional mining industry itself at large. Etched across the global landscape, we find disastrous evidence of mining from thousands and even hundreds of years ago. Vast open mines and massive manmade underground caverns dot the planet. As demand for products has increased and is continuing to do so, the demand for materials such as copper, iron, coal, natural gases and other minerals is equally increasing. Mining can cause a number of water-pollution problems, such as acid mine drainage, metal contamination, and increased sediment levels in streams and rivers. Sources can include active or abandoned surfaces and underground mines, processing plants, and waste-disposal areas.
The results can impact domestic water supplies, irrigation animal water supply, fisheries, and even local swim-spots. Particularly Acid mine drainage is a potentially severe pollution hazard. It can contaminate surrounding soil, groundwater, and surface water, killing all present life, corroding culverts, pumps, and other metal equipment that come into contact with the acid water. Mining pollution can lead to detrimental health and environmental effects. High lead levels in the blood can cause devastating health effects, such as seizures, coma, and even death.
#2 The Meat & Dairy Industry
The meat and dairy industries, on the global stage, have the second most significant impact on the environment. Deforestation for pastures and agricultural land to grow food for livestock; huge amounts of water usage, land and energy needed for meat production; energy for transportation, and more. Throughout its complex processes, meat and dairy products can cause air pollution, water pollution, and deplete local freshwater sources. One reason why the meat and dairy industry has such a significant impact on the environment is because of the processes required to produce meat. These industries must feed the livestock, clearcut forests to create pastures, go through massive amounts of fossil fuels to process and transport livestock and products. Not to mention the extremely unsustainable process of packaging and manufacturing to pass products on to consumers. According to one study, though more than 80% of farmland is used for livestock, it only produces 19% of food calories and 37% of the protein consumed. This has led some people to state that a vegan diet might be the biggest way to reduce your impact on the planet. Definitely more impactful than shaming early crypto adopters. While many still debate the topic, there is a strong argument for at least trying to, as a society reduce our regular meat and dairy consumption.
#3 The Leather Tanning Industry
For thousands of years, leather has been a crucial part of our clothing, equipment, horse riding essentials, and more. Today nearly anything can be made in leather, from wallets to armchairs. The tanning process itself involves the processing of raw leather in order to make it resilient and strong enough for consistent use. In the past, there was little regulation around the results of environmental health, but today, large companies are very careful about where they get their products from. However, there are still some abandoned tannery sites and some small-scale tanneries that still pose a risk to the local environment and population. Water waste is the main source of pollution from tanning. Contaminated water that contains chemicals such as chromium is created in vast amounts and, if untreated, can have a devastating impact on local waterways. Although the situation has improved significantly in recent decades, more needs to be done in developing worlds to help ensure local communities are not affected further.
#4 Chemical Manufacturing
The chemical manufacturing industry includes producers of chemicals such as organic and inorganic products, industrial gases, and specialty chemicals such as pharmaceutical products and essential oils. Furthermore, this industry includes all aspects of mixing, blending, diluting or converting basic chemicals to make chemical products like pesticides, detergents and cosmetics. Water and air pollution are a big concern in regard to chemical manufacturing. Pollution by chemical factories and the pollution of water and environments was happening historically, but current preventive measures have seen a decline. Though that doesn't mean that reports haven't surfaced of some companies being careless with chemicals and waste. While chemical pollution may affect any water, air, and soil, chemical pollution could pose an even more serious long-term risk when present in water bodies, such as oceans, because of the possible long-term impact on fish and other aquatic life.
#5 Lead Smelting Industry
Smelting is a key process within lead product production, and involves heating lead ore or recovered lead with chemical reducing agents. The lead processing and smelting factories work with both primary lead, which is mined, separated from ore, and refined into various products and secondary lead, which is recovered from used objects, like batteries, for use in other products. Lead is a very useful material and one that has become a staple part of our industrial development. Toxic air pollution is a dangerous side effect of lead smelting. The smelting process produces sulphur dioxide gas, which is emitted into the atmosphere. In some areas where the largest smelting complexes are housed, there have been a record number of acid-damaged lakes, land damaged from acid rain, and even negative health impacts on local human and animal populations. Nowadays, there are regulations in place in more areas to curb the number of harmful emissions that are released into the atmosphere. But, unfortunately, regulations are broken and accidents happen.
#6 Product Manufacturing
As globalization continues, more and more consumer products are being created to satisfy an ever-increasing need. This, in turn, creates a demand for product manufacturing. It is perhaps not surprising that product manufacturing is a major contributor to an individual country's GDP income and, in turn, the global economy. Pollutants from this industry vary widely across the different types of product manufacturing, however, there are some consistencies across themes. For example, the emission from energy sources used to power the production and pollution from wastewater and solid waste. There are millions of different products available to the public today. Each one causing a different type of pollution at some point during its manufacturing stage. We're shown more options. We continue to want more things. And companies continue making more products. A never-ending cycle that continues to affect the environment in a constantly changing variety of means.
#7 The Dye Industry
In close association with fashion, the dye industry is a significant polluter. We find dyes in paints, textiles, inks, papers, and plastics, which we all use every day. One of the main polluting factors of the dye industry is water pollution which, in turn, has an impact on local environments and populations. The water waste from dye production carries a host of different chemicals. Chromium, lead, mercury, arsenic, as well as a host of other pollutants, enter water sources after being directly dumped into surface water without treatment. It won't take you long online to find photographs from alleged dye factories that run their waste directly into rivers, often causing visible changes in the water. Even without visible change, unchecked dumping of dye water waste has a massive impact on the local environments in which the factories are based.
#8 The Fashion Industry
Fashion has been the focus of a lot of attention recently as a primary environmental offender. Most of fashion’s impact is due to its constituent elements and processes, many of which have already been discussed. Nevertheless, "fast fashion," has had a considerable impact on the environment in recent history, in particular through water pollution. Since the year 2000, global clothing production has more than doubled in size and, with thousands of new clothing lines being released every year, consumers are constantly encouraged to buy the newest trends. A shocking amount of fast fashion pieces end up in landfill sites within a year of being purchased. What most consumers don’t consider is that the production of clothes requires land for factories, cotton production for material, water and fuel for manufacturing, and more. Not to mention that there is the potential for lots of toxic chemicals being used in the dying process and other unsustainable industries previously mentioned.
#9 Industrial Dumpsites
It would be hard to put an exact number on the number of industrial dumpsites that exist in the world. Some countries are less forthcoming about the number of large-scale dumpsites they have. Nevertheless, the polluting impact of these sites is well-known. Both open dumpsites and municipal landfills are used around the world, often containing scrap metal, agricultural waste, hospital and household waste, and chemical waste from industrial processes. The mixture of toxic substances and decaying organic material can impact the soil quality of the areas surrounding a landfill site. Add rain into the mix, and the result is serious contamination of the local groundwater. As a result, no one would want to leave anywhere near them, but unfortunately, as a 2017 study brought to light, around 15 million people live and work within huge municipal dumpsites around the world. Many of these people who are born and raised in these environments have an average life expectancy of around 35 years, and many face multiple health issues associated with pollution from these dumpsites.
#10 Agriculture
Last, but not least, There can be no denying that pesticides and other chemicals used by the agricultural industry pollute the environment. Studies continue to show the negative impact that these chemicals can have on local wildlife and water sources. There is no single cause of agriculture pollution. Pesticides and fertilizers, contaminated water, soil erosion and sedimentation, and livestock diet and waste requirements can cause health-related issues and have an effect on aquatic animals and beyond. In 2016, the Guardian covered a report which stated that “farming was the biggest cause of air pollution in Europe.” The study at the heart of the 2016 Guardian article takes it a step further by highlighting the industries impact on air pollution: “When the nitrogen compounds are mixed with air already polluted from other industries, they combine to form solid particles that can stick in the fine lung tissue of children and adults, causing breathing difficulties, and impaired lung and heart function...eventually leading premature expiration.”
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So when you put the impact of Bitcoin, NFTs, Ethereum; crypto as a whole - and compare it to any of these 10 industries, and many more, there is almost no argument to be made. If anyone is mad about the impact of proof of work, you should be far worse about the fashion industry, or the mining industry, or the way your food is being made. There are so many problems in our world, and though it may feel foreign, crypto is coming in as a solution - not a problem. The use of crypto in place of traditional transactions, industries, and international banking methods is actually a sustainable alternative! So it’s unfortunate that right as it begins to get some initial press that so much of it is so inflammatory. While Proof of Stake is not the ultimate solution, as many Bitcoin maximalists far prefer it as a secure means of financial transactions, the crypto space is still in its infancy. All of these subsections (NFTs, Bitcoin, etc.) are still evolving and cannot, justifiably, yet be compared to established industries, let alone entire countries. I really hope that after reading this article you will go out and do some research of your own and look into what real changes you can make in your daily life to lessen your own personal environmental footprint.
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