Research conducted by the Cambridge Centre for Alternative Finance (CCAF) in collaboration with the Ethereum Climate Platform (ECP) has revealed that the recent Ethereum upgrade known as the Merge has significantly reduced the network’s greenhouse gas emissions. By transitioning from a proof-of-work to a proof-of-stake consensus mechanism, Ethereum has positioned itself as a more environmentally friendly alternative to other high-carbon blockchains.
The findings, first unveiled at the COP28 conference during two key events, indicate that Ethereum has historically contributed approximately 27.5 million metric tonnes of carbon dioxide equivalents (MtCO2e). This data underscores the environmental implications of cryptocurrency technologies and highlights their potential to aid countries in fulfilling their climate commitments known as Nationally Determined Contributions (NDCs), which outline non-binding national plans for reducing greenhouse gas emissions.
The ECP, which includes collaborations with Allinfra and Consensys, has also announced its partnership with Boomitra, a recipient of the Earthshot Prize, aimed at mitigating one million tonnes of CO₂. This initiative marks a vital first step towards addressing Ethereum’s historical carbon emissions. In the coming years, the ECP intends to drive investment initiatives that tackle this legacy while utilizing its digital tools and leveraging a comprehensive network of carbon market specialists and corporations.
Anna Lerner, Executive Director of the ECP, emphasized the importance of this research, stating, “This pioneering study serves as a crucial reminder of how we can decarbonize impactful technologies and mobilize them for climate finance. The ECP was established to counteract Ethereum’s historical emissions, and now we possess concrete data to guide our efforts. We urge every business utilizing blockchain to take responsibility, adopt more sustainable practices, and work toward offsetting their carbon footprint.”
Bill Kentrup, Co-founder and Head of Origination at Allinfra, remarked on the significance of the findings, noting that they illuminate the positive impact achieved through Ethereum’s transition to a low-emission ecosystem. He called on others in the technology and business sectors to actively participate in combating the climate crisis by supporting the financing of verifiable green initiatives.
Steven Haft, Head of Global Partnerships and Climate Lead at Consensys, added, “As the second-largest blockchain globally, Ethereum’s proof-of-stake model, often referred to as ‘greened Eth,’ combined with Web3 technology, offers a compelling opportunity for attracting investment in climate-focused projects. The formation of the Ethereum Climate Platform underscores our commitment to addressing Ethereum’s historical carbon footprint. We welcome these research findings, which will serve as the foundation for our carbon pledge.”