Regulation
Cardano Unveils Green Metrics to Meet New European MiCA Standards
THE Cardano The Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has released the sustainability indicators of the blockchain network to ensure compliance with European standards Regulation of Cryptocurrency Markets (MiCA)according to a July 2 statement.
This release comes six months ahead of the second phase of MiCA’s implementation for cryptocurrency providers. The initiative aims to align with MiCA’s requirements, requiring cryptocurrency issuers and service providers to disclose sustainability indicators. The first phase of MiCA, which Stablecoin GoalsIt came into force on June 30, while the second phase is expected in six months.
To facilitate compliance, the Cardano Foundation has partnered with the CCRI to collect and analyze quality data about the Cardano network. This collaboration has produced a report detailing comprehensive sustainability indicators specific to Cardano.
Cardano Indicators
According to the report, Cardano employs an energy-efficient consensus protocol that consumes significantly less energy versus Proof-of-Work blockchain as Bitcoin.
As of May 2024, the Cardano network consumed only 704.91 MWh, which is approximately 0.192 W per transaction per second (TPS).
Cardano Key Metrics (Source: CCRI)
The report also reveals Cardano’s annualized carbon footprint and the carbon intensity of the electricity consumed, which amount to 250.73 tCO2e and 356 gCO2 per kWh, respectively.
These sustainability metrics are in line with the draft Regulatory Technical Standards (RTS) specified by the MiCA regulation. Cardano hopes that this report will set a benchmark for other blockchain networks.
Frederik Gregaard, CEO of the Cardano Foundation, highlighted the growing need to address sustainability in the cryptocurrency space. He noted that the partnership with CCRI will help Cardano meet the stringent requirements of MiCA and assist financial institutions in integrating sustainability into their digital asset offerings.
Similarly, Dr. Ulrich Gallersdörfer, CTO and co-founder of CCRI, emphasized the importance of scientific methodologies and real-world data in measuring and managing the environmental impacts of blockchain networks.
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Posted in: Cardano, European Union, Tokens Editor Editor 
Liam ‘Akiba’ Wright
Editor-in-Chief at CryptoSlate
Also known as “Akiba,” Liam is a reporter, editor, and podcast producer at CryptoSlate. He believes decentralized technology has the potential to bring about positive change on a large scale.