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Elon Musk wants a greener bitcoin. Has he got a plan or a pipedream?

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Elon Musk says Tesla won’t use or accept bitcoin until he can be sure it’s produced sustainably. He may be waiting some time.

Musk announced his new position in a major U-turn on Wednesday, prompting speculation among some experts about whether he had a plan to wean the crypto industry off the fossil fuels that power “mining,” the energy-intensive process that creates coins.

Tesla could itself take an active role in helping make bitcoin greener by investing in new projects aimed at boosting the use of renewable energy in mining, according to more than a dozen cryptocurrency specialists interviewed by Reuters.

“Musk and Tesla certainly have the resources to support existing efforts to fully move bitcoin to renewable energy,” said Diana Biggs, CEO of crypto startup Valour.

But such ventures could take years to get off the ground.

Another potential route is for Tesla to shift from bitcoin to more eco-friendly digital currencies that don’t rely on mega-computers spawning new tokens, according to the experts.

Yet this too presents major headaches, they say, not least gaining broad crypto industry agreement for software changes and resolving regulatory concerns over smaller coins.

Musk tweeted that while Tesla would no longer accept payment in bitcoin – two months after announcing that it would – the company wouldn’t sell its bitcoin holdings, instead intending to use them when mining became greener energy.

Tesla is also looking at other cryptocurrencies that use less than 1% of the energy burned by bitcoin, he added.

The industry experts interviewed by Reuters said they thought it was unlikely that Musk had been blissfully unaware until now of the environmental concerns surrounding bitcoin production.

The move may represent an attempt to bolster Tesla’s environmental credentials amid growing competition in the electric vehicle sector, said Sasja Beslik, head of sustainable business development at Bank J. Safra Sarasin in Zurich.

“My indication of this is that it is a way to further strengthen the brand,” he said. “It’s up to them to hold any currency they want. But given the fact that it has a heavy CO2 footprint … it is a challenging thing.”

Tesla did not immediately respond to a request for comment.

GREENER OPTIONS?

After his original tweet, Musk followed the next day with a chart showing bitcoin’s power consumption. “Energy usage trend over past few months is insane,” he wrote.

Yet environmentalists have criticised bitcoin’s energy consumption and its reliance on fossil fuels for years, not months.

“As it stands, the use of bitcoin doesn’t align with Tesla’s own mission statement,” said Alex De Vries, founder of research platform Digiconomist.

“That’s not something that suddenly happened during the past two months in which Tesla first decided to accept bitcoin. The network was already running on fossil fuels like Chinese coal – nothing has really changed in such a short timeframe.”

Bitcoin mining uses about the same amount of energy annually as Egypt did in 2019, data from the University of Cambridge shows.

Much of it is powered by coal, the dirtiest of all fossil fuels. Chinese miners accounted for about 70% of production, data from the university shows . Many use fossil fuels, switching to renewables like hydropower during the rainy summer months.

 

(Graphic – Bitcoin: Power hungry – )

 

WATERMARKED BITCOIN?

Tesla could invest in greener mining options, said Yves Bennaim, the founder of Swiss crypto think-tank 2B4CH. It could create by itself groups of bitcoin miners that use green energy, or connect customers to mining pools, he added.

Projects globally are looking for ways to shift bitcoin mining towards cleaner energy, or at least to reduce its carbon footprint, from repurposing heat generated by mining using flare gas – a by-product from oil extraction – for crypto mining.

Payments company Square Inc, run by Twitter CEO Jack Dorsey, last year said it would give $10 million https://squareup.com/us/en/press/carbon to support firms boosting the use and efficiency of renewables in the bitcoin sector.

In theory, blockchain experts have said, it would be possible to track which bitcoins have been produced sustainably, also giving Tesla an option to only accept greener bitcoins.

“He can probably invest in some green energy miners and mandate that Tesla will only get paid by greenly mined bitcoin,” said Maya Zehavi, a cryptocurrency and blockchain consultant.

“There’s also been a lot of talk of watermarked bitcoin, splitting bitcoin mined by Western countries and those mined in China and North Korea.”

BITCOIN ALTERNATIVES

Tesla could also switch its focus on cryptocurrencies towards tokens that run on a less power-hungry system for producing new digital coins are created.

Through bitcoin’s protocol, or underlying code, computers hooked up to its network competed against each other to solve complex maths puzzle. The system, known in crypto lingo as “proof of work”, is highly energy intensive.

An alternative protocol lets users create new tokens by committing existing cryptocurrencies to digital contracts – potentially lessening reliance on energy-guzzling computers.

Ether, the second-biggest cryptocurrency, is moving to this system, known as “proof of stake”. Still, many existing coins that use this system are still relatively hard to use at scale, and are less widely known than bitcoin.

“The only real answer is 1. actively investing in renewable mining farms and making mining “greener” or 2. switching to a protocol that is based on proof of stake,” said Larry Cermak, director of research at crypto site The Block.

Cryptocurrencies that consume less energy, such as seventh-largest coin XRP, may present other concerns, experts said.

Investors have worried about XRP since U.S. regulators charged blockchain firm Ripple, a major backer of the cryptocurrency, with an $1.3 billion unregistered securities offering last year. Ripple has denied the charges.

Some have also suggested changing bitcoin’s protocol itself, to lower its power consumption. Yet getting all users in bitcoin’s decentralised network of miners, run by no oversight body, to agree would be challenging, experts warned.

“The whole bitcoin mining ecosystem has invested billions of dollars in hardware,” said Jack Liao, CEO of Chinese mining firm LightningAsic. “How can they change the protocol? Change means a loss of billions.”

 

(Reporting by Tom Wilson and Anna Irrera; Editing by Pravin Char)

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World on pace for significantly more warming without immediate climate action, report warns

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The world is on a path to get 1.8 degrees Celsius (3.2 Fahrenheit) warmer than it is now, but could trim half a degree of that projected future heating if countries do everything they promise to fight climate change, a United Nations report said Thursday.

But it still won’t be near enough to curb warming’s worst impacts such as nastier heat waves, wildfires, storms and droughts, the report said.

Under every scenario but the “most optimistic” with the biggest cuts in fossil fuels burning, the chance of curbing warming so it stays within the internationally agreed-upon limit “would be virtually zero,” the United Nations Environment Programme’s annual Emissions Gap Report said. The goal, set in the 2015 Paris Agreement, is to limit human-caused warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) since pre-industrial times. The report said that since the mid-1800s, the world has already heated up by 1.3 degrees Celsius (2.3 degrees Fahrenheit), up from previous estimates of 1.1 or 1.2 degrees because it includes the record heat last year.

Instead the world is on pace to hit 3.1 degrees Celsius (5.6 degrees Fahrenheit) since pre-industrial times. But if nations somehow do all of what they promised in targets they submitted to the United Nations that warming could be limited to 2.6 degrees Celsius (4.7 degrees Fahrenheit), the report said.

In that super-stringent cuts scenario where nations have zero net carbon emissions after mid-century, there’s a 23% chance of keeping warming at or below the 1.5 degrees goal. It’s far more likely that even that optimistic scenario will keep warming to 1.9 degrees above pre-industrial times, the report said.

“The main message is that action right now and right here before 2030 is critical if we want to lower the temperature,” said report main editor Anne Olhoff, an economist and chief climate advisor to the UNEP Copenhagen Climate Centre. “It is now or never really if we want to keep 1.5 alive.”

Without swift and dramatic emission cuts “on a scale and pace never seen before,” UNEP Director Inger Andersen said “the 1.5 degree C goal will soon be dead and (the less stringent Paris goal of) well below 2 degrees C will take its place in the intensive care unit.”

Olhoff said Earth’s on a trajectory to slam the door on 1.5 sometime in 2029.

“Winning slowly is the same as losing when it comes to climate change,” said author Neil Grant of Climate Analytics. “And so I think we are at risk of a lost decade.”

One of the problems is that even though nations pledged climate action in their targets submitted as part of the Paris Agreement, there’s a big gap between what they said they will do and what they are doing based on their existing policies, report authors said.

The world’s 20 richest countries — which are responsible for 77% of the carbon pollution in the air — are falling short of their stated emission-cutting goals, with only 11 meeting their individual targets, the report said.

Emission cuts strong enough to limit warming to the 1.5 degree goal are more than technically and economically possible, the report found. They just aren’t being proposed or done.

The report ”shows that yet again governments are sleepwalking towards climate chaos,” said climate scientist Bill Hare, CEO of Climate Analytics, who wasn’t part of the report.

Another outside scientist, Johan Rockstrom, director of the Potsdam Institute for Climate Impact Research, said the report confirms his worst concerns: “We are not making progress and are now following a 3.1 degree path, which is, with next to zero uncertainty, a path to disaster.”

Both the 3.1 degree and 2.6 degree calculations are a tenth of a degree Celsius warmer than last year’s version of the UN report, which experts said is within the margin of uncertainty.

Mostly the problem is “there’s one year less time to cut emissions and avoid climate catastrophe,” said MIT’s John Sterman, who models different warming scenarios based on emissions and countries policies. “Catastrophe is a strong word and I don’t use it lightly,” he said, citing the Intergovernmental Panel on Climate Change’s latest report saying 3 degrees of warming would trigger severe and irreversible damage.

The report focuses on what’s called an emissions gap. It calculates a budget of how many billions of tons of greenhouse gases — mostly carbon dioxide and methane — the world can spew and stay under 1.5 degrees, 1.8 degrees and 2 degrees of warming since pre-industrial times. It then figures how much annual emissions have to be slashed by 2030 to keep at those levels.

To keep at or below 1.5 degrees, the world must slash emissions by 42%, and to keep at or below 2 degrees, the cut has to be 28%, the report, named, “No more hot air… please !” said.

In 2023, the world spewed 57.1 billion metric tons (62.9 billion U.S. tons) of greenhouse gases, the report said. That’s 1,810 metric tons (1,995 U.S. tons) of heat-trapping gases a second.

“There is a direct link between increasing emissions and increasingly frequent and intense climate disasters,” United Nations Secretary-General Antonio Guterres said in a video messaged released with the report. “We’re playing with fire, but there can be no more playing for time. We’re out of time.”

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Read more of AP’s climate coverage at http://www.apnews.com/climate-and-environment

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Follow Seth Borenstein on X at @borenbears

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The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.



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Hamilton Tiger-Cats sign Canadian kicker Liegghio to extension

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HAMILTON – The Hamilton Tiger-Cats signed Canadian kicker Marc Liegghio to a two-year contract extension Thursday.

Liegghio, 27, of Woodbridge, Ont., remains under contract with Hamilton through the 2026 season.

Liegghio has made 39-of-44 field goals (88.6 per cent) and 37-of-38 converts (97.4 per cent) this season. The five-foot-seven, 198-pound kicker was named Hamilton’s top 2024 special-teams player Wednesday.

He has appeared in 66 regular-season games over four CFL seasons. He has made 117-of-138 field goals (84.8 per cent) and 125-of-139 converts (89.9 per cent). He began his pro career with the Winnipeg Blue Bombers (2021-22) before joining the Ticats last season.

Liegghio played collegiately at Western Ontario. He was selected in the fifth round, No. 39 overall, by Winnipeg in the 2020 CFL draft.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.



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Rogers Communications reports $526M third-quarter profit, up from loss a year ago

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TORONTO – Rogers Communications Inc. reported a third-quarter profit of $526 million compared with a loss a year ago.

The company says the profit amounted to 98 cents per diluted share for the quarter ended Sept. 30.

The result compared with a loss of $99 million or 20 cents per diluted share in the same quarter last year.

Revenue for the quarter totalled $5.13 billion, up from $5.09 billion a year earlier.

On an adjusted basis, Rogers says it earned $1.42 per diluted share in its latest quarter, up from an adjusted profit of $1.27 per diluted share a year ago.

Analysts on average had expected a profit of $1.36 per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 24, 2024.

Companies in this story: (TSX:RCI.B)

The Canadian Press. All rights reserved.



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