Ethereum’s Green Transformation: Network Energy Demand Now Comparable to Eiffel Tower Operations

The Cambridge Centre for Alternative Finance (CCAF) has confirmed that Ethereum achieved a 99.98% reduction in energy consumption after The Merge. While the upgrade solved Ethereum’s major environmental concerns, the report highlights that network centralization and infrastructure dependencies are now becoming the key areas of focus for institutions.

CCAF’s June 2026 report, Ethereum After the Merge – A Change in Power, analyzed the effects of Ethereum’s move from proof-of-work to proof-of-stake. The study found that Ethereum’s annual electricity usage dropped from 2.4 gigawatts before The Merge to only 7.87 gigawatt-hours per year after the transition, equivalent to around 0.90 megawatts of continuous power consumption.

The report also showed a significant environmental improvement, with Ethereum’s annual carbon emissions declining from 10.3 million tonnes of CO₂ equivalent to approximately 2.37 thousand tonnes. This represents a 99.98% reduction achieved through a major software-level change rather than hardware upgrades.

The findings reinforce the importance of Ethereum’s September 15, 2022 transition, when the network replaced proof-of-work mining with proof-of-stake validation. The Merge removed the need for energy-intensive mining operations and became one of the most significant efficiency upgrades implemented by a major blockchain network, strengthening Ethereum’s position among ESG-focused investors.

CCAF’s Findings on Ethereum’s Energy Transformation

CCAF based its calculations on a network-weighted average of 105 watts per node, using real-world network observations rather than theoretical estimates.

The scale of Ethereum’s energy reduction becomes clearer through comparisons with everyday benchmarks. Before The Merge, Ethereum consumed electricity at a level similar to Iceland’s national power usage. After the upgrade, the network’s yearly energy demand is roughly comparable to the electricity required to operate the Eiffel Tower.

Ethereum’s current energy footprint is also significantly smaller than that of traditional financial systems. CCAF estimates that banking infrastructure—including branches, ATMs, and data centers—uses around 260 terawatt-hours of electricity annually. Ethereum’s post-Merge consumption of 7.87 gigawatt-hours is approximately 33,000 times lower.

The network’s carbon emissions have also fallen sharply, reaching only about 2.37 kilotonnes of CO₂ equivalent annually.

Compared with other blockchain networks, Ethereum’s energy usage remains below Solana, which consumes more than 13.4 GWh per year, but above NEAR Protocol, which uses about 5.11 GWh annually. CCAF emphasized that Ethereum remains relatively efficient when evaluated against its economic scale and the value secured by the network.

New Institutional Concerns After The Merge

With Ethereum’s energy profile significantly improved, the main institutional debate has shifted away from sustainability and toward network structure.

The CCAF report highlights concerns related to validator and node concentration, including geographic distribution and reliance on a limited number of cloud hosting providers. These factors represent potential risks for network resilience and decentralization.

The focus is now moving toward how widely Ethereum’s infrastructure is distributed and whether validator operations remain sufficiently independent over the long term.

The report could make Ethereum more attractive to institutional investors that previously avoided proof-of-work assets because of environmental concerns. However, investment committees may still need to evaluate decentralization, infrastructure security, and ecosystem sustainability before considering all major risks resolved.