Principal adverse impacts on the climate and other environment-related adverse impacts of the consensus mechanism.
This document has been prepared for public website disclosure purposes on the basis of Article 66(5) of Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) and the presentation structure set out in Commission Delegated Regulation (EU) 2025/422. The information concerns the estimated principal adverse impacts on the climate and other environment-related adverse impacts of Bitcoin's proof-of-work consensus mechanism.
Note on data: Because Bitcoin mining is decentralised and the available data sources are model-based, the values are estimates and may differ depending on the methodology used.
The table below follows the S.1-S.16 structure of the MiCA regulatory technical standards for information on principal adverse impacts on the climate and other environment-related adverse impacts of the consensus mechanism. The information relates to Bitcoin and its in-scope consensus mechanism indicators as reported in the selected source disclosure, not to LocalBitcoins Oy's own office or server electricity consumption.
| No. | Field | Content |
|---|---|---|
| S.1 | Name | LocalBitcoins Oy |
| S.2 | Relevant legal entity identifier | 743700A4MPOAUC6DR431 |
| S.3 | Name of the crypto-asset | Bitcoin |
| S.4 | Consensus mechanism | Proof-of-work |
| S.5 | Incentive mechanisms and applicable fees | Bitcoin miners validate transactions through the proof-of-work consensus mechanism. Miners are incentivised through block rewards and transaction fees. LocalBitcoins does not operate the Bitcoin network, mining activity or the consensus mechanism, and has no ability to influence the technical design, energy consumption or incentive mechanisms of the Bitcoin network. |
| S.6 | Beginning of the period to which the disclosure relates | 2025-04-28 |
| S.7 | End of the period to which the disclosure relates | 2026-06-23. The quantitative indicators are based on the latest public sources reviewed for this disclosure. |
| S.8 | Energy consumption per year | 138,000,000,000 kWh/year, equivalent to approximately 138 TWh/year. According to the Cambridge Centre for Alternative Finance’s 2025 Cambridge Digital Mining Industry Report, Bitcoin mining’s estimated annual electricity consumption is 138 TWh. |
| S.9 | Energy consumption sources and methodology | The energy consumption estimate is based on the Cambridge Centre for Alternative Finance’s 2025 Cambridge Digital Mining Industry Report and CBECI methodology. Due to the decentralised nature of Bitcoin mining, precise and comprehensive data on electricity consumption and energy sources is difficult to obtain. The figures should therefore be understood as estimates rather than verified actual consumption data. |
| S.10 | Renewable energy consumption | 42.6% of energy from renewable generation resources. CCAF’s 2025 report estimates Bitcoin mining’s broader sustainable energy share at 52.4%, consisting of 42.6% renewables and 9.8% nuclear energy. The S.10 figure includes renewable energy only and does not include the broader sustainable energy share that also includes nuclear energy. |
| S.11 | Energy intensity | Approximately 747 kWh per transaction. This figure is calculated by dividing the CCAF 2025 annual Bitcoin mining electricity consumption estimate of 138,000,000,000 kWh/year by Digiconomist’s reported 184,677,340 Bitcoin transactions processed in 2024. This is a calculated estimate for disclosure purposes. It should be interpreted with caution, as Bitcoin’s proof-of-work energy consumption secures the network as a whole and is not directly caused by individual transactions. |
| S.12 | Scope 1 DLT GHG emissions – controlled | Not separately available from the public sources. Scope 1 DLT GHG emissions refer to direct greenhouse gas emissions from sources controlled by the DLT network nodes using the consensus mechanism. The selected public sources do not provide a separate MiCA S.12-formatted Scope 1 DLT figure for Bitcoin. |
| S.13 | Scope 2 DLT GHG emissions – purchased energy | Not separately available from the public sources. Scope 2 DLT GHG emissions refer to indirect emissions from the generation of purchased electricity or other purchased energy used by Bitcoin miners to maintain the consensus mechanism. The selected public sources do not provide a separate MiCA S.13-formatted Scope 2 DLT figure for Bitcoin. |
| S.14 | GHG intensity | Approximately 216 kgCO₂e per transaction. This figure is calculated by dividing CCAF’s estimated Bitcoin mining-related greenhouse gas emissions of 39.8 MtCO₂e/year by Digiconomist’s reported 184,677,340 Bitcoin transactions processed in 2024. This is a calculated estimate for disclosure purposes and is not presented as a Scope 1 / Scope 2 DLT split. |
| S.15 | Key energy sources and methodology | According to CCAF’s 2025 report, sustainable energy sources account for 52.4% of Bitcoin mining’s energy mix, consisting of 42.6% renewables and 9.8% nuclear energy. The report identifies natural gas as the largest single energy source at 38.2%, and coal at 8.9%. These figures are based on CCAF’s survey and modelling methodology and are used as public estimates of Bitcoin mining’s energy-source mix. |
| S.16 | Key GHG sources and methodology | CCAF’s 2025 report estimates Bitcoin mining-related greenhouse gas emissions at approximately 39.8 MtCO₂e/year. This figure is used as contextual information on overall greenhouse gas emissions and as the basis for the calculated GHG intensity figure in S.14. It is not presented as a MiCA S.12 or S.13 Scope 1 / Scope 2 DLT split, because the selected public sources do not provide such a breakdown. |
The Bitcoin network validates transactions through a proof-of-work consensus mechanism. Miners expend computational power to solve cryptographic puzzles, leading to substantial electricity consumption. The environmental impact of Bitcoin mining depends primarily on the amount of electricity consumed, the electricity generation mix and the geographic location of mining activity.
Mining powered by fossil fuels increases greenhouse gas emissions and may also increase other air pollutants, such as nitrogen oxides and particulate matter. Renewable and other low-carbon energy sources reduce emissions intensity, but they do not eliminate all environmental impacts.
In addition to CO₂e emissions, Bitcoin mining may be associated with electronic waste, natural resource impacts from mining equipment manufacturing, load on electricity grids and local effects on energy costs and infrastructure.
LocalBitcoins Oy does not engage in Bitcoin mining and has no practical ability to change the Bitcoin consensus mechanism or miners' energy choices. The company uses the existing Bitcoin network in the provision of crypto-asset services. The company's own customer transaction volume is also limited relative to the global Bitcoin network.
The figures in this disclosure are based on publicly available sources. LocalBitcoins has not obtained proprietary MiCA sustainability indicator data from CCRI, Crypto Risk Metrics or another specialist data provider. Where a MiCA-specific indicator is not directly available from the selected public sources, LocalBitcoins has either marked the indicator as not separately available or provided a calculated estimate based on clearly stated public source data. Energy intensity and GHG intensity figures are methodology-dependent and should be interpreted as indicative estimates rather than verified actual transaction-level impacts.
Cambridge Centre for Alternative Finance, Cambridge Digital Mining Industry Report:
https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/cambridge-digital-mining-industry-report/
Cambridge Centre for Alternative Finance, CBECI methodology:
https://ccaf.io/cbnsi/cbeci/methodology
Cambridge Judge Business School news, sustainable energy rising in Bitcoin mining:
https://www.jbs.cam.ac.uk/2025/cambridge-study-sustainable-energy-rising-in-bitcoin-mining/
Digiconomist, Bitcoin Historic Sustainability Performance
https://digiconomist.net/bitcoin-historic-sustainability-performance
Digiconomist, Bitcoin Energy Consumption Index
https://digiconomist.net/bitcoin-energy-consumption