The Cardano Foundation Releases Sustainability Indicators in Partnership with CCRI
The Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has unveiled the blockchain network’s sustainability indicators to ensure compliance with Europe’s Markets in Crypto-Assets (MiCA) regulation, as stated in a recent announcement.
This release comes ahead of the second phase of MiCA implementation for crypto asset providers by six months. The goal is to adhere to MiCA requirements, which mandate that crypto asset issuers and service providers disclose sustainability indicators. The initial phase of MiCA targeted stablecoins and went into effect on June 30, with the subsequent phase scheduled for six months later.
To assist with compliance, the Cardano Foundation worked with CCRI to collect and evaluate quality data about the Cardano network. This collaboration produced a detailed report outlining comprehensive sustainability indicators specific to Cardano.
According to the report, Cardano utilizes an energy-efficient consensus protocol that consumes substantially less energy compared to Proof-of-Work blockchains like Bitcoin.
In May 2024, the Cardano network consumed only 704.91 MWh, equivalent to roughly 0.192 W per transaction per second (TPS).
The report also reveals Cardano’s annualized carbon footprint and the carbon intensity of its consumed electricity, which are 250.73 tCO2e and 356 gCO2 per kWh, respectively.
These sustainability metrics are in line with the draft regulatory technical standards (RTS) outlined in the MiCA regulation. Cardano hopes that this report will serve as a benchmark for other blockchain networks.
Frederik Gregaard, CEO of the Cardano Foundation, emphasized the increasing need to address sustainability in the crypto space. He highlighted that the partnership with CCRI will help Cardano meet MiCA’s rigorous requirements and support financial institutions in integrating sustainability into their digital asset offerings.
Similarly, Dr. Ulrich Gallersdörfer, CTO and co-founder of CCRI, underscored the importance of scientific methodologies and real-world data in measuring and managing the environmental impacts of blockchain networks.
This article was originally published in: Cardano, EU, Tokens
