The use of hydrocarbon fuels in Bitcoin mining has undergone a notable decline over the past thirteen years. Recent data reveals that the proportion of coal energy in Bitcoin (BTC) mining has dropped from 63% in 2011 to only 20% in 2024. This significant decrease averages about 8% annually, according to a recent report issued by the MiCA Crypto Alliance on March 31.
In contrast, the utilization of renewable energy sources in Bitcoin mining has seen a steady increase, growing at an average rate of 5.8% per year. This transition reflects a broader industry shift towards cleaner and more sustainable energy solutions, with forecasts indicating further decarbonization of Bitcoin’s environmental footprint in the forthcoming years.
Bitcoin absolute energy consumption trends and share of renewable and coal energy. Source: MiCA Crypto Alliance
Global Coal Consumption and Bitcoin’s Changing Energy Landscape
This declining reliance on coal comes against the backdrop of an increase in global coal consumption, which soared to new heights in 2024, reaching an estimated 8.8 billion tonnes according to the International Energy Agency (IEA).
The IEA projects that global demand for coal will remain near these record levels through 2027, with emerging economies such as India, Indonesia, and Vietnam anticipated to contribute significantly to future growth in coal usage.
Source: IEA
Scenarios for Bitcoin’s Energy Future Through 2030
The MiCA report outlines five potential scenarios for Bitcoin’s carbon footprint looking to the year 2030, ranging from a bearish price forecast of $10,000 per BTC to an ultra-bullish projection of $1 million per BTC. The study emphasizes that in a medium price scenario, renewable energy could make up between 59.3% and 74.3% of Bitcoin’s total electricity consumption, excluding nuclear energy inputs.
Peak annual carbon footprint estimations for different Bitcoin price scenarios based on IEA’s different energy transition scenarios. Source: MiCA Crypto Alliance
Looking ahead, the report anticipates a peak in Bitcoin mining energy consumption by 2030, corroborating forecasts from previous studies, including one released by NYDIG in September 2021. The NYDIG report projected that even under high price conditions, Bitcoin’s electricity consumption might peak at levels significantly higher than those observed in 2020, though it would still represent only a fraction of global primary energy use—approximately 0.4% and 2% of global electricity generation.
This ongoing evolution in the energy consumption methods of Bitcoin mining highlights the industry’s commitment to reducing its environmental impact and adapting to a rapidly changing energy landscape.
