The Cardano Foundation and the Crypto Carbon Ratings Institute (CCRI) have introduced new sustainability indicators for the Cardano network, meeting the upcoming Markets in Crypto-Assets (MiCA) regulation requirements in the EU. This regulation mandates crypto asset issuers and service providers to disclose specific sustainability metrics.
The Cardano network’s sustainability indicators include its annual carbon footprint of 250.73 tCO2e and an annual electricity consumption of 704.91 MWh. The marginal power demand per transaction is 0.192 W. These indicators align with the draft regulatory technical standards by the European Securities and Markets Authority (ESMA) under MiCA regulation.
Cardano uses an energy-efficient consensus protocol, significantly reducing electricity usage compared to Proof of Work (PoW) protocols. The detailed report explains the methodology and results, emphasizing Cardano’s commitment to sustainability and regulatory compliance.
This initiative highlights the importance of scientific methodologies and real-world data in measuring and managing the environmental impacts of blockchain networks. The Cardano Foundation and CCRI’s collaboration ensures the Cardano network meets MiCA’s stringent requirements, aiding financial institutions in integrating sustainability into their digital asset propositions and aligning with investors’ increasing ESG awareness. This report enhances the transparency and sustainability of the Cardano network, serving as a benchmark for other blockchain networks aiming to meet regulatory sustainability disclosure obligations.