EU Carbon Pricing Drives Bitcoin Miners to Russia

Higher carbon prices in the European Union (EU) are pushing bitcoin miners to relocate their emissions-intensive operations to Russia, according to an academic analysis. The study, published by three Vietnamese researchers, examined daily data from January 2019 through January 2026 and found a positive relationship between EU carbon allowances and changes in power sector carbon emissions in Russia.

The research suggests that the increasing cost of electricity due to higher carbon prices is driving miners out of Europe. In contrast, Russia offers abundant and inexpensive electricity, making it an attractive destination for mining operations. The study's findings highlight a potential weakness in regional efforts to curb greenhouse gas (GHG) emissions and point to a broader policy challenge for the EU.

Researchers compared the EU27 with Russia and the rest of the world using statistical models and found that the relationship between carbon prices, bitcoin prices, and changes in power sector carbon emissions was most pronounced in Russia. The study also notes that the issue is gaining importance as bitcoin mining economics improve, driven by stronger mining revenues and differences in carbon costs.