The Cardano Foundation, in partnership with the Crypto Carbon Ratings Institute (CCRI), has unveiled new sustainability metrics to comply with Europe’s Markets in Crypto-Assets (MiCA) regulation. This announcement comes six months before MiCA’s second phase for crypto asset providers begins.
Cardano’s initiative aims to align with MiCA rules, requiring crypto issuers to disclose sustainability indicators. The first phase, focusing on stablecoins, started on June 30. Cardano’s report, created with CCRI, details its energy-efficient consensus protocol, using only 704.91 MWh as of May 2024, or 0.192 W per transaction per second.
Key metrics include an annualized carbon footprint of 250.73 tCO2e and a carbon intensity of 356 gCO2 per kWh. These metrics meet MiCA’s draft regulatory standards, setting a benchmark for other blockchain networks.
Frederik Gregaard, CEO of the Cardano Foundation, emphasized the need for sustainability in crypto. Dr. Ulrich Gallersdörfer, CTO of CCRI, highlighted the importance of scientific data in managing blockchain environmental impacts.
This initiative is crucial for integrating sustainability into financial institutions’ digital asset offerings, reflecting the growing importance of eco-friendly blockchain solutions.
