A recent environmental assessment conducted by the Crypto Carbon Ratings Institute (CCRI) under the MiCA regulations has unveiled detailed sustainability metrics for the Cardano blockchain. Collaborating with the Cardano Foundation, the assessment scrutinizes the network’s energy consumption, carbon emissions, waste generation, and broader environmental impact to ensure compliance with the latest European Securities and Markets Authority (ESMA) regulatory standards.
Cardano’s Environmental Impact Assessment
Utilizing the Ouroboros Proof of Stake (PoS) protocol, Cardano’s infrastructure demonstrates a substantial reduction in energy usage compared to traditional Proof of Work (PoW) networks. The annual energy consumption of the Cardano network is measured at 704.91 MWh, significantly lower than PoW systems such as Bitcoin, which often consume energy equivalent to small countries.
The total annual carbon emissions of Cardano amount to 250.73 tonnes of CO2 equivalent, with a carbon intensity of 356 grams of CO2 per kWh. This metric reflects the network’s varied energy sources, encompassing both renewable and non-renewable resources.
The report highlights the generation of approximately 8.26 tonnes of e-waste by the Cardano network annually, with 51.93% remaining unrecycled. Addressing electronic waste management emerges as a crucial area for enhancement within the network’s hardware lifecycle.
Furthermore, the assessment explores the network’s impact on critical raw materials necessary for hardware production, emphasizing their scarcity and the environmental and economic costs of extraction. Moreover, Cardano’s energy consumption indirectly influences water usage, especially in regions reliant on non-renewable energy sources where water is extensively employed for cooling in power generation.
With the enforcement of MiCA regulations in June 2023 mandating comprehensive disclosure of environmental impacts by crypto-asset service providers, the CCRI’s comprehensive report on Cardano not only meets these standards but also establishes a transparent benchmark for sustainability reporting in the crypto sector.
As of the report, Cardano operates 3,147 nodes and has processed 19,530,055 transactions annually. Understanding these operational figures is crucial to assess the network’s physical infrastructure and its environmental implications. The average power per node is 25.576 watts, with a total network power of 80.47 kW, and a power demand of 0.192 W per transaction per second (TPS).
In conclusion, the CCRI’s report offers vital insights into Cardano’s environmental footprint and its alignment with global sustainability targets. As environmental concerns gain prominence in the crypto industry, such assessments play a pivotal role in empowering investors, regulators, and the community to make informed decisions regarding the sustainability of blockchain technologies.
Cardano’s current trading value stands at $0.41.
