Cardano Foundation submits blockchain sustainability report to EU regulators

What’s new? The Cardano Foundation NPO, in conjunction with the Crypto Carbon Ratings Institute (CCRI), has published sustainability metrics for the Cardano blockchain. They comply with the EU-wide Markets in Crypto-Assets (MiCA) regulation requirements, which gradually began to be implemented on June 30.

Material by Cointelegraph

What else is known? MiCA mandates cryptocurrency issuers and service providers to disclose sustainability metrics. Cardano Foundation, as curator of the native token of the Cardano (ADA) blockchain, engaged CCRI to ensure the quality of its blockchain monitoring methodology and data collection when compiling such a report.

The report emphasizes that Cardano is powered by the energy-efficient Proof of Stake (PoW) consensus protocol and consumes significantly less power than Proof of Work (PoW) protocols. It presents data on the total annual electricity consumption and carbon footprint of the Cardano network, as well as the marginal electricity consumption per transaction per second (TPS).

The sustainability metrics contained in the document are in line with the European Securities and Markets Authority’s (ESMA) draft regulatory technical standards.

Cardano Foundation CEO Frederik Gregaard said that the foundation wants to not only ensure compliance with EU regulations but also set a benchmark for the crypto industry.

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MiCA requirements partially came into force this week, and the industry has six months to bring its operations into compliance with environmental, social, and governance (ESG) requirements.

Gregaard called the initiative a demonstration of how blockchains can address ESG issues, particularly those related to the environment while maintaining transparency and efficiency:

“As the crypto market matures and the MiCA regulations come into full effect, such efforts will be crucial in building trust with regulators, investors and users alike, paving the way for wider adoption of blockchain technology in a sustainable manner.”

On June 30, MiCA’s provisions on stablecoins went into effect, with rules on crypto service providers to be introduced in December, affecting ecosystems such as Cardano.

At the time of writing, ADA is ranked 11th in the overall cryptocurrency rankings and fifth on the PoS token list with a capitalization of $14,5 billion. The asset is trading at $0,4093, having added 2% overnight. Weekly growth amounted to 5,4%, while the asset has lost 31% since the beginning of the year.