Research from the Cambridge Centre for Alternative Finance (CCAF) and the Ethereum Climate Platform (ECP) reveals that the Merge – the upgrade that switched the ETH consensus mechanism from a proof-of-work protocol to a proof-of-stake system – ensured that Ethereum now has a much lighter greenhouse gas footprint than other high carbon-emitting blockchains.
This research, announced at COP28 at two events, reveal that Ethereum has historically created 27.5 million metric tonnes of carbon dioxide equivalents (MtCO2e), highlighting the impact of crypto asset technology on sustainability and how technology can be used to help countries access funding for their Nationally Determined Contributions.
A nationally determined contribution (NDC) or intended nationally determined contribution (INDC) is a non-binding national plan highlighting climate change mitigation, including climate-related targets for greenhouse gas (GHG) emission reductions.
The ECP, founded by Allinfra and Consensys, also recently welcomed Earthshot prize winner Boomitra as a new partner committed to mitigating one million tonnes of CO₂, which was a first step in addressing the historical carbon footprint of Ethereum. Over the next few years, the ECP will be facilitating investment to address this historical footprint and leveraging its digital toolset and vast network of carbon market experts and corporations.
Anna Lerner, executive director of the ECP said: “This trailblazing research gives us all a wake-up call when it comes to demonstrating how to decarbonise a vastly impactful technology - and how we can put it to work for climate finance. We started the ECP to counteract the historical emissions of Ethereum and now, we have a valid, specific quantitative figure to work with. We call on every business using blockchain to take accountability, commit to using more sustainable methods, and redress the carbon emissions that they have created.”
Bill Kentrup, co-founder and head of origination at Allinfra, added: “These findings mark a significant step forward and allow us to comprehend the magnitude of positive impact achieved through the near-complete decarbonisation of the Ethereum ecosystem. It is a source of inspiration for both the team here at Allinfra and the ECP where we are working to engage in climate mitigation together. We implore others in the global technology and business community to join the fight against the climate crisis by incentivising the financing of real-world, verifiably green projects.”
Steven Haft, head of global partnerships and climate lead, Consensys, continued: “Ethereum is the second biggest blockchain in the world by far; Proof of Stake Ethereum, ‘greened Eth’ and Web3 technology present an irresistible combination for attracting investible climate projects. This is why the Ethereum Climate Platform was formed and is committed to addressing the historical carbon footprint of Ethereum. We welcome the research and will use its peer-reviewed findings as the base of our carbon pledge.”