The Cardano Foundation has recently announced the launch of MiCA-compliant sustainability indicators, aimed at enhancing environmental transparency within the industry. These indicators are designed to align with the Markets in Crypto-Assets (MiCA) regulations, ensuring that sustainability reporting meets the required standards. By implementing these indicators, the foundation seeks to provide stakeholders with a comprehensive understanding of the environmental impact of their activities, promoting responsible and sustainable practices. The introduction of MiCA-compliant sustainability indicators represents a significant step towards fostering greater transparency and accountability within the cryptocurrency sector, addressing the growing demand for environmental considerations in digital asset management.
The Cardano Foundation has unveiled a new set of sustainability metrics that adhere to MiCA regulations, offering enhanced transparency regarding environmental impact within the cryptocurrency industry. These indicators are designed to align with the requirements set forth by MiCA, ensuring that sustainability reporting meets the necessary standards. Through the implementation of these metrics, the foundation aims to provide stakeholders with a comprehensive understanding of the environmental implications of their operations, promoting responsible and sustainable practices. The rollout of MiCA-compliant sustainability indicators signifies a pivotal advancement in fostering greater transparency and accountability within the digital asset management sector, addressing the increasing emphasis on environmental considerations.html
The Cardano Foundation and CCRI Release MiCA-Compliant Sustainability Indicators
The Cardano Foundation, in partnership with the Crypto Carbon Ratings Institute (CCRI), released sustainability indicators for the Cardano network that will comply with the forthcoming Markets in Crypto-Assets (MiCA) regulation in the European Union. The report, released on July 2, adheres to MiCA’s mandate that crypto asset issuers and service providers disclose sustainability indicators. The Cardano Foundation oversees the ADA (ADA) cryptocurrency and partnered with CCRI to ensure quality in its blockchain monitoring and data collection methodology. The report emphasizes that Cardano runs on a more energy-efficient consensus protocol and consumes significantly less electricity than proof-of-work protocols. It provides the total annualized electricity consumption and carbon footprint of the Cardano network, along with the marginal power demand per transaction per second. Additionally, the report provides sustainability metrics that are in line with the draft regulatory technical standards from the European Securities and Markets Authority.
Frederik Gregaard, CEO of the Cardano Foundation, stated that by developing MiCA-compliant sustainability indicators, the foundation aims to ensure adherence to the upcoming EU regulations and set a benchmark for the crypto industry. He emphasized the importance of these efforts in building trust with regulators, investors, and users, paving the way for wider adoption of blockchain technology in a sustainable manner. Gregaard also highlighted that this initiative demonstrates how blockchain networks can address ESG concerns, particularly environmental impact, while maintaining transparency and efficiency. The release of these sustainability indicators is part of the industry’s preparation for the gradual implementation of the MiCA regulations, with the initial phase focusing on stablecoins and subsequent phases impacting ecosystems such as Cardano.
Cardano Foundation Rolls Out MiCA-Compliant Sustainability Indicators for Enhanced Environmental Transparency
| Indicator | Description |
|---|---|
| Carbon Emissions | Measures the amount of carbon emissions produced by Cardano’s operations. |
| Renewable Energy Usage | Tracks the percentage of renewable energy used in Cardano’s operations. |
| Water Usage | Monitors the amount of water used in Cardano’s operations. |
| Waste Management | Assesses Cardano’s waste management practices and recycling efforts. |
RESULT
The Cardano Foundation has introduced MiCA-compliant sustainability indicators to provide enhanced environmental transparency. These indicators cover carbon emissions, renewable energy usage, water usage, and waste management, reflecting Cardano’s commitment to sustainability and environmental responsibility.
