- Cardano’s sustainability indicators have been released in an environmental assessment, spotlighting the blockchain’s energy usage, carbon emissions, and environmental impact.
- Partnering with the Cardano Foundation, the Crypto Carbon Ratings Institute (CCRI) aligns Cardano’s operations with European Securities and Markets Authority’s (ESMA) stringent regulations.
- “We find a total annualized carbon footprint of 250.73 tCO2e for the Cardano network,” the CCRI report highlights, emphasizing the need for more renewable energy sources.
Cardano’s blockchain demonstrates superior sustainability under MiCA regulations, setting new standards for environmental transparency in the crypto industry.
Cardano Aligns with MiCA Sustainability Standards
Cardano, leveraging its Proof of Stake (PoS) protocol known as Ouroboros, is showcasing remarkable strides in energy efficiency. The network’s annual energy consumption stands at 704.91 MWh, significantly lower than traditional Proof of Work (PoW) systems like Bitcoin, which consume energy equivalent to that of small nations.
Breakdown of Cardano’s Carbon Footprint
According to CCRI, Cardano’s annual carbon emissions are quantified at 250.73 tonnes of CO2 equivalent, with a carbon intensity of 356 grams of CO2 per kWh. This suggests a balanced use of both renewable and non-renewable energy sources. The report urges that a shift towards renewable energy could further reduce these figures.
Electronic Waste and Sustainability Challenges
MiCA’s new framework includes evaluating electronic waste, which is a notable area for Cardano. The network produces around 8.26 tonnes of waste electrical and electronic equipment (WEEE) each year. Alarmingly, 51.93% of this waste is not recycled, highlighting an urgent need for better waste management solutions within the network’s hardware lifecycle.
Resource Utilization and Environmental Impact
The environmental report also discusses the extraction and use of critical raw materials necessary for Cardano’s hardware. As these materials are scarce and resource-intensive to extract, they present significant economic and environmental costs. Furthermore, the energy consumption patterns indirectly impact water usage, particularly in areas dependent on non-renewable energy sources for cooling processes during power generation.
Cardano’s Compliance with Global Sustainability Goals
Under MiCA, effective from June 2023, crypto-asset service providers must disclose their environmental impact extensively. CCRI’s detailed analysis of Cardano meets these disclosure requirements, promoting greater transparency in sustainability reporting across the crypto industry.
Cardano’s Network Operations and Environmental Load
Currently, the Cardano network runs 3,147 nodes and processes approximately 19,530,055 transactions annually. These statistics are crucial for evaluating the network’s operational framework and its consequent environmental implications. Each node operates at an average power of 25.576 watts, resulting in a total network power consumption of 80.47 kW. The power demand per transaction per second (TPS) is calculated at 0.192 W.
Conclusion
CCRI’s comprehensive report on Cardano highlights the network’s commitment to environmental sustainability while aligning with MiCA regulations. As environmental scrutiny intensifies within the crypto sector, such transparency is vital for investors, regulators, and stakeholders to make informed decisions. Cardano’s ongoing efforts set a benchmark in the industry, driving the conversation towards greater environmental responsibility.
