Cardano introduces environmentally friendly measures to comply with Europe’s updated MiCA regulations
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The Cardano Foundation, in partnership with the Crypto Carbon Ratings Institute (CCRI), has released the blockchain network’s sustainability indicators to ensure compliance with Europe’s Markets in Crypto-Assets (MiCA) regulation, as stated on July 2.
This release precedes the second phase of MiCA implementation for crypto asset providers by six months. The goal is to meet MiCA requirements by disclosing sustainability indicators for crypto asset issuers and service providers. The initial phase of MiCA focused on stablecoins and went into effect on June 30, with the subsequent phase scheduled for six months later.
To aid compliance, the Cardano Foundation collaborated with CCRI to gather and evaluate data on the Cardano network. This collaboration led to a detailed report on sustainability indicators specific to Cardano.
Cardano indicators
According to the report, Cardano utilizes an energy-efficient consensus protocol that consumes significantly less energy compared to Proof-of-Work blockchains such as Bitcoin.
As of May 2024, the Cardano network has consumed only 704.91 MWh, equivalent to approximately 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 align with the draft regulatory technical standards (RTS) outlined in the MiCA regulation. Cardano aims to set a precedent for other blockchain networks with this report.
Frederik Gregaard, CEO of the Cardano Foundation, underscored the increasing importance of sustainability in the crypto industry. He emphasized how the collaboration with CCRI will assist Cardano in meeting MiCA’s stringent requirements and supporting financial institutions in incorporating sustainability into their digital asset offerings.
Likewise, Dr. Ulrich Gallersdörfer, CTO and co-founder of CCRI, emphasized the significance of scientific methodologies and real-world data in assessing and managing the environmental impacts of blockchain networks.
Mentioned in this articlePosted In: Cardano, EU, Tokens Editor Editor 
Liam ‘Akiba’ Wright
Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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