Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has released a sustainability report for the Cardano network to comply with the upcoming Markets in Crypto-Assets (MiCA) regulation in the European Union. The report, adhering to MiCA’s directive for crypto asset issuers and service providers to disclose sustainability indicators, was published on July 2.
Significant Step by Cardano Foundation
According to the Cardano Foundation, a partnership with CCRI was established to ensure quality in blockchain monitoring and data collection methodology. The report highlights that Cardano is working on a more energy-efficient consensus protocol and consumes significantly less electricity compared to proof of work protocols.
The report also covers the total annual electricity consumption and carbon footprint of the Cardano network, as well as the marginal power demand per transaction per second. Additionally, the report provides sustainability metrics in line with the draft regulatory technical standards of the European Securities and Markets Authority.
Statement from a Prominent Figure
Cardano Foundation CEO Frederik Gregaard stated that by developing MiCA-compliant sustainability indicators, the foundation aims to ensure compliance with upcoming EU regulations and set a reference point for the crypto industry:
“With parts of the MiCA regulations coming into effect this week, the industry is now entering a six-month countdown to implement significant ESG binding requirements. As the crypto market matures and MiCA regulations fully come into force, such efforts will be crucial in building trust among regulators, investors, and users, and paving the way for the broader adoption of blockchain technology in a sustainable manner.”
Gregaard said this initiative demonstrates how blockchain networks can address ESG concerns, particularly environmental impact, while maintaining transparency and efficiency. The first phase of the staggered regulations under the MiCA package, focusing on stablecoin projects, came into effect on June 30. In December, regulations affecting crypto asset service providers impacting ecosystems like Cardano will be introduced.
