Cardano Foundation Release Sustainability Indicators to Comply with EU MiCA Regulations
The Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has released a set of sustainability indicators designed to comply with the Markets in Crypto-Assets (MiCA) regulation in the European Union.
This initiative shows Cardano’s commitment to transparency, sustainability, and regulatory compliance among similar service providers, setting a new benchmark for the broader crypto industry in the EU.
Today, July 2, the Crypto Carbon Ratings Institute (CCRI) released a comprehensive report on Cardano, aligning with the Markets in Crypto-Assets (MiCA) mandate, which requires crypto asset issuers and service providers to disclose sustainability indicators. This adherence is in line with MiCA’s Article 6 (1) and Article 66 (5), which demand detailed environmental impact information for both token issuers and crypto-asset service providers.
The Cardano Foundation, which oversees the ADA cryptocurrency, collaborated with CCRI to ensure rigorous blockchain monitoring and data collection. The CCRI report underscores Cardano’s commitment to sustainability through its adoption of an energy-efficient consensus protocol.
In contrast to energy-intensive Proof of Work (PoW) protocols like Bitcoin, Cardano operates with significantly lower electricity consumption. As of May 2024, the network’s total annualized electricity consumption is reported at 704.91 MWh. The report states:
“Cardano employs an energy-efficient consensus protocol. In comparison to Proof of Work (PoW)-based protocols such as Bitcoin, Cardano consumes significantly less electricity.”
Key metrics highlighted in the report include not only electricity consumption but also the carbon footprint of the Cardano network and marginal power demand
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