It's the same old narrative: "we must make Bitcoin use less energy"... Those who advocate this idea cannot see that it is a fallacy by definition. It's precisely that inflow of energy that gives Bitcoin its value. Cut down the energy usage, and you cut down Bitcoin's value. If there's something they should be targeting, it is not the amount of energy used, but the energy source (fossil fuels vs. renewable sources).
The amount of energy has to be kept high, and should actually increase, for the price to be able to reach 6 digits and beyond. It is precisely the immense amount of energy required for mining that gives Bitcoin its scarcity, and hence its value. It's a closed-loop system.
Those bureaucrats don't have a clue.
It seems that the source is also a kind of false dichotomy.
I have no problem with the idea of supplementing various energy sources, but there seem to be a lot of problems just getting into a framework that tries to classify various energies as if they can do the same things that fossil energies have been able to do... all kinds of false narratives seem to exist when there is too much attempt to control the narrative in terms of this energy good and this energy bad, but then realizing that the answers are not as cut and dry as they are made out to be in terms of the various trade-offs that go into the matters of even when put into practice and also stress tested and also to figure out in truthful empirical ways rather than just plotting matters out on paper.
"Green" (i.e., renewable) energy could be better for the planet (or so they say), and you're right in that things are not so cut-and-dry. Regardless, if one forces a limit on the energy inflow in the Bitcoin network, price will be negatively affected, as the network self-adjusts to the new equilibrium. They want it "green"? So be it (and good luck enforcing it), if it's good for the planet and/or makes Greta and the politicians happy. But I don't think Bitcoin's price can climb up to 6 digits and beyond, while its energy flow is 'choked' by artificially limiting it to some moderate value.