Energy-related ESG Metrics
This disclosure is published in accordance with the Principle Adverse Impact (PAI) requirement under the
Commission Delegated Regulation (EU) 2025/422 published on March 31, 2025, that specifies the content,
methodologies, and presentation of information regarding climate and environmental impacts for crypto-assets
under the Markets in Crypto-assets Regulation (MiCA) (EU) 2023/1114.
Although CF Technologies does not issue any digital assets, the Company recognizes its’ obligation as a crypto
asset service provider to disclose information related to the principal climate and environmental adverse impacts
associated with the consensus mechanisms of the crypto assets made available to its customers.
Environmental Considerations of Consensus Mechanisms
1. Energy Consumption
Consensus mechanisms such as Proof-of-Work (PoW) (e.g., Bitcoin) rely on miners performing complex
computational tasks to validate transactions and secure networks. These operations are highly energy-intensive,
often exceeding 500,000 kWh as network participation increases.
By contrast, Proof-of-Stake (PoS) mechanisms (e.g., Ethereum, Tron, Solana, FastToken) are significantly more
energy-efficient, typically consuming below 500,000 kWh, thereby offering a lower environmental footprint.
2. Carbon Emissions
The carbon intensity of PoW networks depends heavily on the energy mix used by miners. In regions reliant on
fossil fuels, mining contributes substantially to CO₂ and greenhouse gas emissions. Even where renewable
energy sources are available, miners often operate on mixed grids that include non-renewable components.
In contrast, PoS and other modern consensus mechanisms achieve markedly lower emissions per transaction
due to their minimal energy requirements.
3. Electronic Waste (E-Waste)
PoW mining requires specialized hardware that becomes obsolete as mining difficulty increases and more
efficient models emerge. This leads to the generation of electronic waste (e-waste), much of which is difficult to
recycle and frequently ends up in landfills. PoS systems, requiring no dedicated mining equipment, mitigate this
issue almost entirely.
While no blockchain is entirely free from environmental impact, ongoing innovation, governance improvements,
and renewable energy integration are essential to building a more sustainable digital asset ecosystem.
Understanding Carbon Neutrality
Term Definition
Carbon footprint Total greenhouse gas (GHG) emissions generated by an activity.
Carbon credit A tradable certificate allowing one tonne of CO₂ equivalent emissions.
Carbon offset Actions compensating for emissions, e.g., reforestation or carbon capture.
Carbon neutrality Achieved when total emissions are balanced through reduction or offset initiatives.
Global frameworks now support tokenized carbon credits and blockchain-based offset tracking, promoting
transparency and integrity in carbon markets.
Pathways Toward Carbon Neutrality in Crypto
• Energy-efficient consensus mechanisms: The migration from PoW to PoS has reduced energy
consumption by over 99% for networks like Ethereum.
• Renewable energy adoption: Approximately 39% of Bitcoin mining is now powered by renewables
(hydro, wind, or solar).
• Carbon capture and offset programs: Projects supporting forest preservation, renewable power, and
verified carbon credits are on the rise.
• Tokenized carbon markets: Initiatives such as the Crypto Climate Accord, Energy Web, and Ripple’s
carbon-neutral XRP Ledger exemplify how blockchain innovation aligns with global sustainability goals.
The table below presents the required information regarding the principal adverse impacts of the consensus mechanism on climate and other
environmental factors.
Name LEI Name of
crypto-
asset
Consensus
Mechanism
Proof of Work
/
Proof of
Stake
Incentive mechanism and
Applicable fees
Beginning of
period of
disclosed
information
yyyy-mm-dd
End of
period of
disclosed
information
yyyy-mm-dd
Energy
Consumptio
n
(Kwh/a)
Decimal –
18/5
Energy Consumption
Sources and
Methodologies
Internal use
only
CF
Technologies
Limited
98450091A6D
61FB36406
Bitcoin Proof of Work
(PoW)
Block Rewards: Miners receive newly
minted bitcoins for validating blocks.
Rewards halve approximately every four
years (“halving”), capping total supply at 21
million and creating scarcity.
Transaction Fees: Users pay fees to
incentivize miners. Fees are market-driven,
with higher fees prioritizing faster
processing, particularly during network
congestion.
Energy consumption and Lightning Network
transactions are included in calculations,
reflecting the Digital Token Identifier
Foundation’s categorization for the
functionally fungible group (FFG). Excluding
Lightning transactions would significantly
increase per-transaction estimates.
2024-11-12 2025-11-12 244,849,939,
359.4213
Energy consumption is
estimated using a top-
down approach based
on economically
rational miner behavior,
SHA-256 hardware
efficiency, network
activity, and FFG DTI
mappings, applying
conservative
assumptions per EU
regulatory guidance.
https://www.
bankfrick.li/e
n/bitcoin
CF
Technologies
Limited
98450091A6D
61FB36406
Ethereum Proof of Stake
(after merge)
The network security is ensured through
economic incentives and penalties applied to
validators. Validators must stake a minimum
of 32 ETH and are compensated for
contributing to block production, attestation,
and sync committee duties.
Rewards consist of newly issued ETH and
transaction fees.
Transaction fees are divided into a burned
base fee and an optional priority fee payable
to validators, under the EIP-1559 fee model.
Misconduct results in slashing, while
inactivity triggers proportional penalties. This
framework aligns validator behaviour with
network security objectives and introduces a
more predictable, and potentially
deflationary, fee structure during periods of
elevated network usage.
2024-11-13 2025-11-13 2,159,953.20
000
A bottom-up approach
is used. The network’s
energy consumption is
primarily driven by node
operations. Estimates
are based on empirical
data gathered through
public information
sources, open-source
tools, and proprietary
crawlers. Hardware
characteristics are
derived from the
technical requirements
of the client software,
and device energy
usage is measured in
certified laboratories.
Where possible, the
https://www.
bankfrick.li/e
n/ethereum-
eth
Functionally Fungible
Group Digital Token
Identifier (FFG DTI) is
used to identify all
relevant
implementations of the
crypto-asset, with
mappings updated
regularly using
information from the
Digital Token Identifier
Foundation.
Assumptions regarding
hardware types and
participant numbers are
validated on a best-
effort basis using
available empirical
evidence. Participants
are generally assumed
to act in an
economically rational
manner.
CF
Technologies
Limited
98450091A6D
61FB36406
Bitcoin
Cash
Proof of Work
(PoW)
Block Rewards: Miners receive newly
minted bitcoins for validating blocks.
Rewards halve approximately every four
years (“halving”), capping total supply at 21
million and creating scarcity.
Transaction Fees: Users pay fees to
incentivize miners. Fees are market-driven,
with higher fees prioritizing faster
processing, particularly during network
congestion.
SmartBCH Incentives and Fees: Validators
are rewarded with a share of transaction
fees for securing the sidechain and
validating transactions. Fees, paid in BCH,
align validator incentives with network
stability and efficient transaction processing.
2024-11-12 2025-11-12 1,108,928,40
7.56520
The asset’s energy
consumption is
estimated using both
top-down and bottom-
up approaches:
Top-down: Focuses on
miners as the primary
energy consumers.
Energy use is
calculated based on
hardware efficiency
(SHA-256), miner
revenue opportunities,
and network profitability
thresholds. Merge
mining is considered
where relevant.
Bottom-up: Focuses
on network nodes,
using empirical data
from public sources and
in-house crawlers.
Hardware requirements
and energy
consumption are
https://www.
bankfrick.li/e
n/bitcoin-
cash
measured in certified
labs.
For both approaches,
the Functionally
Fungible Group
Digital Token
Identifier (FFG DTI) is
used to capture all
implementations of the
asset. Assumptions are
based on best-effort
empirical data and
conservatively estimate
adverse impacts.
CF
Technologies
Limited
98450091A6D
61FB36406
Cardano Proof of Stake Staking Rewards: - Validators (slot leaders)
secure the network by validating
transactions and creating new blocks. To
participate, validators must stake ADA, and
those with larger stakes are more likely to be
selected as validators. Validators are
rewarded with newly minted ADA and
transaction fees for successfully producing
blocks and validating transactions.
Delegators, who may not wish to run a
validator node, can delegate their ADA to
staking pools. By doing so, they contribute to
the network’s security and earn a share of
the rewards earned by the pool. The rewards
are distributed proportionally based on the
amount of ADA delegated.
Slashing Mechanism: To prevent malicious
behavior, Cardano employs a slashing
mechanism. Validators who act dishonestly,
fail to validate transactions properly, or
produce incorrect blocks face penalties that
involve the slashing of a portion of their
staked ADA. This provides strong economic
incentives for validators to act honestly and
ensures the network’s integrity and security.
Delegation and Pool Operation: Staking
pools can charge operation fees (a margin
on rewards) to maintain their infrastructure.
This includes fixed costs set by pool
operators. Delegators earn rewards after
pool fees are deducted, providing a
balanced incentive for both operators and
delegators to participate actively. Rewards
are distributed at the end of each epoch,
where staking pool performance and
2024-11-13 2025-11-13 813,103.200
00
A bottom-up approach
is used. The nodes are
considered to be the
central factor for the
energy consumption of
the network. These
assumptions are made
on the basis of
empirical findings
through the use of
public information sites,
open-source crawlers
and crawlers developed
in-house. The main
determinants for
estimating the
hardware used within
the network are the
requirements for
operating the client
software. The energy
consumption of the
hardware devices was
measured in certified
test laboratories. When
calculating the energy
consumption, if
available, we use - the
Functionally Fungible
Group Digital Token
Identifier (FFG DTI) to
determine all
implementations of the
asset of question in
scope and we update
https://www.
bankfrick.li/e
n/cardano-
ada
participation determine the distribution of
ADA rewards to all stakeholders.
Transaction Fees: are paid in ADA and are
generally low. They are calculated based on
the size of the transaction and the network’s
current demand. These fees are paid to
validators for including transactions in new
blocks. The fee formula is: a + b × size,
where a is a constant (typically 0.155381
ADA), b is a coefficient related to the
transaction size (0.000043946 ADA/byte),
and size refers to the transaction size in
bytes. This ensures that the fee adapts
based on network load and the size of each
transaction.
Staking Pool Fees: Staking pool operators
charge operational costs and a margin fee,
which covers the cost of running and
maintaining the staking pool. These fees
vary between pools but ensure that
operators can continue to provide their
services while offering rewards to
delegators. After the operator's fee, the
remaining rewards are distributed among the
delegators based on the size of their stake.
the mappings regularly,
based on data of the
Digital Token Identifier
Foundation. The
information regarding
the hardware used and
the number of
participants in the
network is based on
assumptions that are
verified with best effort
using empirical data. In
general, participants
are assumed to be
largely economically
rational.
CF
Technologies
Limited
98450091A6D
61FB36406
Shiba Inu Token/
No consensus
mechanism
n/a 2025-01-01 2025-04-23 1,945.78478 Data Source:
www.micacrypto
alliance.com/
methodologies
Micacryptoal
liance.com
CF
Technologies
Limited
98450091A6D
61FB36406
Ripple XRP Ledger
Consensus
Protocol (XRP
LCP)
On the XRP Ledger, a minimal transaction
fee is applied to each transaction, which is
permanently burned (transaction burn),
reducing the total supply and preventing
network spam.
2025.01.01 2025.04.23 123,362.958
90
Data Source:
www.micacrypto
alliance.com/
methdologies
Micacryptoal
liance.com
CF
Technologies
Limited
98450091A6D
61FB36406
USDC Token/
No consensus
mechanism
n/a 2025.01.01 2025.04.23 22,584.6856
6
Data Source:
www.micacrypto
alliance.com/
methodologies
Micacryptoal
liance.com
CF
Technologies
Limited
98450091A6D
61FB36406
TRON Proof of Stake On the TRON network, Super
Representatives (SRs) receive block
producer rewards for validating and
producing blocks, while TRX holders earn
staking and delegation rewards by
participating directly or indirectly in network
operations. Users pay gas fees to execute
transactions and smart contracts, and a
2025.01.01 2025.04.23 4,936,206.28
300
Data Source:
www.micacrypto
alliance.com/
methdologies
Micacryptoal
liance.com
portion of TRX may be permanently burned
through transaction burn, reducing total
supply and discouraging spam. TRX holders
also have governance rights, allowing them
to vote for SRs and participate in protocol
decisions, supporting decentralized and
sustainable network management.
CF
Technologies
Limited
98450091A6D
61FB36406
Polkadot Proof of Stake Block producer rewards incentivize
validators who create new blocks, while
staking rewards and delegation rewards
encourage DOT holders to lock or delegate
tokens to support network security,
promoting long-term, inclusive participation.
Transaction (Tx) fees and gas fees, paid in
DOT, reflect the computational resources
required for network operations, with lower
fees indicating more energy-efficient
protocols, relevant for environmental
reporting. Some DOT may be burned in
certain operations to manage supply,
demonstrating economic sustainability.
Governance rights allow DOT holders to
vote on network decisions, ensuring
transparency and accountability.
2025.01.01 2025.07.02 471,952.621
52
Data source:
www.micacrypto
alliance.com/
methdologies
One trading
CF
Technologies
Limited
98450091A6D
61FB36406
Binance
Coin
Proof of Stake Block producer rewards incentivize
validators who create new blocks on the
network. Staking rewards and delegation
rewards encourage BNB holders to lock or
delegate tokens to support network security,
promoting long-term, inclusive participation.
Transaction (Tx) fees and gas fees, paid in
BNB, reflect the computational resources
required for network operations, with lower
fees indicating more energy-efficient
protocols,important for environmental
reporting. In some cases, BNB may be
burned through mechanisms like the
quarterly BNB burn to reduce supply,
demonstrating economic sustainability.
Governance rights allow BNB holders to
participate in network decisions, ensuring
transparency and accountability.
2025.01.01 2025.07.02 170,218.055
32
Data source:
www.micacrypto
alliance.com/
methdologies
One trading
CF
Technologies
Limited
98450091A6D
61FB36406
Solana Proof of Stake Block producer rewards incentivize
validators (leaders) to create new blocks,
while staking rewards encourage validators
to lock their own SOL to secure the network.
Delegation rewards allow SOL holders to
2025.01.01 2025.07.02 18,566,026.3
4101
Data source:
www.micacrypto
alliance.com/
methdologies
One trading
delegate tokens to validators and earn a
share of their rewards, promoting
decentralization and long-term participation.
Transaction (Tx) fees, paid in SOL,
compensate validators for computational
resources, while gas fees are integrated into
Tx fees, keeping costs low and supporting
high-throughput operations. Additionally, a
portion of transaction fees may be burned,
helping manage SOL supply and
demonstrating economic sustainability.
CF
Technologies
Limited
98450091A6D
61FB36406
Litecoin Proof of Work Litecoin incentivizes miners primarily through
block rewards and transaction fees. When
miners successfully add a new block to the
blockchain, they receive a fixed amount of
newly minted LTC, currently 6.25 LTC
following the 2023 halving. In addition to
this reward, miners also collect the
transaction fees paid by users for including
their transactions in the block. Together,
these two incentives motivate miners to
contribute computational power to secure
the network and maintain its ongoing
operation.
2025.01.01 2025.07.02 7,082,950,85
3.66006
Data source:
www.micacrypto
alliance.com/
methdologies
One trading
CF
Technologies
Limited
98450091A6D
61FB36406
Dogecoin Proof of Work Dogecoin incentivizes miners primarily
through block rewards and transaction
fees. When a miner successfully mines a
new block, they receive a fixed reward of
10,000 DOGE, providing a predictable and
steady incentive. In addition to this block
reward, miners also collect transaction fees
paid by users for including their transactions
in the block. Together, these rewards
motivate miners to secure the network and
maintain its operations.
2025.01.01 2025.07.02 8,570,995,00
8.89045
Data source:
www.micacrypto
alliance.com/
methdologies
One trading
CF
Technologies
Limited
98450091A6D
61FB36406
FastToken Proof of Stake FTN on Ethereum functions as an ERC-20
utility and reward token, providing incentives
through airdrops, points-based rewards for
holding or staking, and participation in the
SoftConstruct Crypto Reward Program
(SCRP), while burn-and-buyback
mechanisms reduce circulating supply and
can enhance token value. It is also used
across Ethereum-compatible platforms for
payments, DeFi, gaming, and affiliate
rewards, encouraging active ecosystem
2024-11-13 2025-11-13 2,159,953.20
000
A bottom-up approach
is used. The network’s
energy consumption is
primarily driven by node
operations. Estimates
are based on empirical
data gathered through
public information
sources, open-source
tools, and proprietary
crawlers. Hardware
https://www.
bankfrick.li/e
n/ethereum-
eth
participation. All FTN transactions incur
Ethereum network gas fees paid in ETH,
and any additional project-level fees, such
as for bridge operations or staking programs,
are determined by the Fasttoken ecosystem.
characteristics are
derived from the
technical requirements
of the client software,
and device energy
usage is measured in
certified laboratories.
Where possible, the
Functionally Fungible
Group Digital Token
Identifier (FFG DTI) is
used to identify all
relevant
implementations of the
crypto-asset, with
mappings updated
regularly using
information from the
Digital Token Identifier
Foundation.
Assumptions regarding
hardware types and
participant numbers are
validated on a best-
effort basis using
available empirical
evidence. Participants
are generally assumed
to act in an
economically rational
manner.
The table below is the supplementary information on principal adverse impacts on the climate and other environment-related adverse impacts of the
consensus mechanism for those crypto-assets exceeding Energy Consumption of 0.5 GWh/year
Name of
Crypto-
asset
Renewable
energy
consumption
%
Energy
intensity
kWh
Scope 1
DLT GHG
emissions-
Controlled
tCO2e/a
Scope 2 DLT
GHG emissions –
Purchased
tCO2e/a
GHG
intensity
kgCO2e
Key energy sources and methodologies Key GHG sources and methodologies
Bitcoin 29.306425042 7.24340 0.00000 100877210.63319 2.98425 Renewable Energy Usage
The geographic locations of nodes are
determined via public sources, open-source
crawlers, and in-house tools. If unavailable,
comparable reference networks are used
based on consensus mechanism and
incentive structure. Node locations are
combined with public data on renewable
electricity from Our World in Data (Ember
2025; Energy Institute 2024). Energy intensity
is calculated as the marginal energy cost per
additional transaction.
References:
Ember (2025); Energy Institute (2024); Our
World in Data, Share of electricity generated
by renewables. Retrieved from
https://ourworldindata.org/grapher/share-
electricity-renewables
GHG Emissions
Node locations are identified using public
sources, open-source crawlers, and in-house
tools. If unavailable, comparable reference
networks are used based on consensus
mechanism and incentive structure. Node
locations are combined with electricity carbon
intensity data from Our World in Data (Ember
2025; Energy Institute 2024). Emissions
intensity is calculated as the marginal GHG
emissions per additional transaction.
References:
Ember (2025); Energy Institute (2024); Our
World in Data, Carbon intensity of electricity
generation. Retrieved from
https://ourworldindata.org/grapher/carbon-
intensity-electricity
Ethereum 32.225548601 0.00008 0.00000 718.86066 0.00003 To determine the proportion of renewable
energy usage, the locations of the nodes are
to be determined using public information
sites, open-source crawlers and crawlers
developed in-house. If no information is
available on the geographic distribution of the
nodes, reference networks are used which
are comparable in terms of their
incentivization structure and consensus
mechanism. This geo-information is merged
with public information from Our World in
Data, see citation. The intensity is calculated
as the marginal energy cost with respect to
one more transaction.
Ember (2025); Energy Institute - Statistical
Review of World Energy (2024) - with major
processing by Our World in Data. “Share of
electricity generated by renewables - Ember
and Energy Institute” [dataset]. Ember,
“Yearly Electricity Data Europe”; Ember,
“Yearly Electricity Data”; Energy Institute,
To determine the GHG Emissions, the
locations of the nodes are to be determined
using public information sites, open-source
crawlers and crawlers developed in-house. If
no information is available on the geographic
distribution of the nodes, reference networks
are used which are comparable in terms of
their incentivization structure and consensus
mechanism. This geo-information is merged
with public information from Our World in Data,
see citation. The intensity is calculated as the
marginal emission with respect to one more
transaction.
Ember (2025); Energy Institute - Statistical
Review of World Energy (2024) - with major
processing by Our World in Data. “Carbon
intensity of electricity generation - Ember and
Energy Institute” [dataset]. Ember, “Yearly
Electricity Data Europe”; Ember, “Yearly
Electricity Data”; Energy Institute, “Statistical
Review of World Energy” [original data].
“Statistical Review of World Energy” [original
data]. Retrieved
from https://ourworldindata.org/grapher/share-
electricity-renewables.
Retrieved
from https://ourworldindata.org/grapher/carbon-
intensity-electricity
Bitcoin
Cash
29.306425042 0.17087 0.00000 456874.13621 0.07040 Node locations are determined using public
sources, open-source crawlers, and in-house
tools. If unavailable, comparable reference
networks are used. Geographic data are
combined with electricity generation data from
Our World in Data (Ember 2025; Energy
Institute 2024). Renewable energy share is
calculated as the marginal energy use per
additional transaction.
Reference:
Ember (2025); Energy Institute (2024); Our
World in Data, Share of electricity generated
by renewables. Data Source:
https://ourworldindata.org/grapher/share-
electricity-renewables.
GHG emissions are estimated by determining
node locations using public sources, open-
source crawlers, or in-house tools; if
unavailable, comparable reference networks
are used. Node locations are combined with
electricity carbon intensity data from Our World
in Data (Ember 2025; Energy Institute 2024).
Emissions intensity is calculated marginally,
relative to one additional transaction. Data
source:
https://ourworldindata.org/grapher/carbon-
intensity-electricity
Cardano 31.805944181 0.00114 0.00000 273.81815 0.00039 To determine the proportion of renewable
energy usage, the locations of the nodes are
to be determined using public information
sites, open-source crawlers and crawlers
developed in-house. If no information is
available on the geographic distribution of the
nodes, reference networks are used which
are comparable in terms of their
incentivization structure and consensus
mechanism. This geo-information is merged
with public information from Our World in
Data, see citation. The intensity is calculated
as the marginal energy cost wrt. one more
transaction.
Ember (2025); Energy Institute - Statistical
Review of World Energy (2024) - with major
processing by Our World in Data. “Share of
electricity generated by renewables - Ember
and Energy Institute” [dataset]. Ember,
“Yearly Electricity Data Europe”; Ember,
“Yearly Electricity Data”; Energy Institute,
“Statistical Review of World Energy” [original
data]. Retrieved
from https://ourworldindata.org/grapher/share-
electricity-renewables.
To determine the GHG Emissions, the
locations of the nodes are to be determined
using public information sites, open-source
crawlers and crawlers developed in-house. If
no information is available on the geographic
distribution of the nodes, reference networks
are used which are comparable in terms of
their incentivization structure and consensus
mechanism. This geo-information is merged
with public information from Our World in Data,
see citation. The intensity is calculated as the
marginal emission wrt. one more transaction.
Ember (2025); Energy Institute - Statistical
Review of World Energy (2024) - with major
processing by Our World in Data. “Carbon
intensity of electricity generation - Ember and
Energy Institute” [dataset]. Ember, “Yearly
Electricity Data Europe”; Ember, “Yearly
Electricity Data”; Energy Institute, “Statistical
Review of World Energy” [original data].
Retrieved
from https://ourworldindata.org/grapher/carbon-
intensity-electricity
TRON 0.34124 0.00264 0.00000 1777.04786 0.00095 www.micacrypto alliance.com/ methodologies www.micacrypto alliance.com/ methdologies
Solana 0.4637799772 0.00052 0.00000 4,678.79081 0.00013 www.micacrypto alliance.com/ methodologies www.micacrypto alliance.com/ methdologies
Litecoin 0.4135380648 100.83245 0.00000 2,228,987.59877 31.73173 www.micacrypto alliance.com/ methodologies www.micacrypto alliance.com/ methdologies
Dogecoin 0.4135380648 349.87108 0.00000 2,711,251.12384 110.67424 www.micacrypto alliance.com/ methodologies www.micacrypto alliance.com/ methdologies
FastToken 32.225548601 0.00010 0.00000 718.86066 0.00003 To determine the proportion of renewable
energy usage for FTN transactions, the
geographic locations of Ethereum validator
nodes are identified using public information
sites, open-source crawlers, and in-house
developed crawlers. If no node location
information is available, reference networks
with similar incentivization structures and
consensus mechanisms are used. This
geographic data is merged with public
datasets on electricity generation from Our
World in Data, specifically the share of
electricity generated by renewables from
Ember (2025) and the Energy Institute –
Statistical Review of World Energy (2024).
The energy intensity is calculated as the
marginal energy cost of processing one
additional transaction. (Ember, 2025;
Energy Institute, 2024)
GHG emissions for FTN transactions are
derived from the electricity consumed by
Ethereum validator nodes (servers, networking,
cooling). The emissions are calculated by
multiplying the estimated electricity use by the
carbon intensity (gCO₂e/kWh) of the regional
electricity grids where nodes operate. Where
exact node location is unknown, comparable
reference networks are used to estimate a
weighted average of emissions. This
methodology aligns with Scope 2 DLT
accounting standards, capturing purchased
electricity emissions attributable to transaction
validation.
Conclusion
The cryptocurrency sector is steadily advancing toward sustainability and carbon neutrality. Networks such as Ethereum, Cardano, Solana, and Polkadot showcase
low-carbon innovation, while Bitcoin and Litecoin are taking steps to mitigate their impact through renewable energy and offset programs. Together, these initiatives
represent a clear industry commitment to a greener, more sustainable digital asset future, balancing technological progress with environmental responsibility.