Page 94 - CMA Journal (Nov-Dec 2025)

O TH ER F EATURES

Parallel discussions between the Power Ministry and the energy. Mining in regions with surplus solar, wind, or
Pakistan Crypto Council (PCC) have focused on hydro stabilizes grids while reducing fossil fuel reliance.
leveraging surplus electricity for Bitcoin mining. Globally, about 40% of Bitcoin mining now uses
High-level engagement involving financial and renewables, lowering emissions and operational costs.
regulatory authorities has underscored the need for
Energy-Efficient Consensus Mechanisms: Emerging
regulatory clarity, pilot programmes, and alignment with
blockchain models such as Proof-of-Stake (PoS) drastically
international obligations.
reduce energy consumption. Networks like Ethereum
Despite progress, Pakistan currently lacks binding (PoS), Cardano, and Solana demonstrate that smart
requirements for energy-use disclosure, emissions contracts and dApps can operate efficiently without
reporting, or climate risk assessment for crypto mining compromising environmental goals.
operations, leaving a significant ESG governance gap.
Nature-Based and Carbon Offset Solutions:
ESG Implications: Opportunities for Climate Initiatives like SavePlanetEarth (SPE) use blockchain to
and Sustainable Development support reforestation and afforestation, tokenizing
carbon credits linked to these projects. This offsets
AI for Energy Efficiency: “Green AI” can optimize
mining emissions while advancing biodiversity
energy consumption in industries, including crypto
conservation and ecosystem restoration.
mining. AI algorithms predict demand, streamline
electricity use, and dynamically allocate computing Blockchain in Renewable Energy Grids: Blockchain
resources, preventing unnecessary energy consumption. facilitates peer-to-peer energy trading, allowing
Predictive models allow miners to adjust operations solar-equipped households and businesses to sell excess
during peak or low-demand periods, reducing carbon
energy securely and transparently. Projects such as Power
emissions.
Ledger and LO3 Energy promote renewable adoption,
Energy Reporting & Load Management: Pakistan improve grid efficiency, and align energy markets with
can enhance its grid stability and regulatory oversight by ESG principles.
adopting transparent energy reporting, implementing
Global Carbon Market Integration: Blockchain
the BC-DETS blockchain consortium framework for
allows tokenized carbon credits to be traded across
decentralized energy trading and demand response,
borders, enhancing transparency, accountability, and
integrating IEEE 2030.5 and IEC 61850 standards for
liquidity. This supports international climate agreements
interoperability, leveraging Layer-2 blockchain for secure
and fosters collaboration between governments,
and scalable transactions, and applying real-time energy
corporations, and environmental organizations.
allocation models, which simulations indicate can
achieve up to 35% efficiency gains and 40% higher Conclusion
demand response participation
Pakistan’s move to formalize cryptocurrency mining and
Monitoring and Reducing Carbon Emissions:
allocate surplus electricity for digital industries presents
AI-powered platforms track blockchain carbon footprints
both economic opportunity and ESG risk. While
in real time, offering actionable strategies like shifting
leveraging idle power to attract investment and
workloads to periods of renewable energy availability.
innovation can help diversify the economy, the
Projects such as Crypto Carbon Rank provide
energy-intensive nature of Bitcoin mining, high
transparency on emissions, enabling developers and
users to make greener choices. electricity demand, and lack of binding emissions or
climate-risk disclosure frameworks highlight significant
Blockchain for Carbon Markets: Blockchain ensures environmental and governance challenges. To align this
transparency and integrity in carbon credit markets. digital expansion with sustainable development goals,
Platforms like Toucan Protocol and CarbonX tokenize Pakistan must strengthen regulatory oversight, require
carbon credits, providing tamper-proof, traceable records transparent energy and carbon reporting, and promote
that prevent double counting and increase market
cleaner, renewable-linked mining solutions — ensuring
efficiency. Combined with AI, blockchain enables
that growth in the crypto sector supports rather than
automated verification and accurate monitoring of
undermines the country’s climate and ESG commitments.
emission reductions.
(This article is prepared by Dr. Maiyra Ahmed, Assistant Director,
Renewable-Powered Crypto Mining: Bitcoin and
R&P, under the guidance of Shahid Anwar, Senior Director R&P)
other PoW networks are increasingly adopting renewable
92 ICMA’s Chartered Management Accountant, Nov-Dec 2025