Key Points CCAF reports Ethereum’s energy use fell 99.98% after The Merge. ESG profile improved, but node concentration raises infrastructure concerns. The Cambridge Centre for Alternative Fi
The Cambridge Centre for Alternative Finance (CCAF) released a June 2026 report titled Ethereum After the Merge – A Change in Power, assessing how The Merge reshaped Ethereum’s energy profile and network structure.
The study found annual electricity demand declined from 2.4 GW to 7.87 GWh per year, while CO₂ emissions dropped from 10.3 MtCO₂e to 2.37 ktCO₂e following the transition to proof-of-stake.
According to CCAF, this 99.98% emissions reduction resulted from a single architectural software change implemented on September 15, 2022.
The analysis relies on a network-weighted average of 105 watts per node, presenting the findings as empirically measured rather than modeled estimates.
Before The Merge, Ethereum’s consumption was comparable to Iceland’s national grid, while post-Merge usage aligns more closely with the annual energy needs of landmarks such as the British Museum or the Eiffel Tower.
CCAF estimates the legacy banking sector consumes roughly 260 TWh annually, making Ethereum’s 7.87 GWh footprint approximately 33,000 times smaller.
In cross-chain comparisons, post-Merge Ethereum consumes less energy than Solana, which exceeds 13.4 GWh annually, but more than NEAR at 5.11 GWh per year.
The report states that while Ethereum remains one of the larger proof-of-stake networks in absolute consumption, its usage is relatively efficient given its economic scale.
With energy thresholds largely addressed, attention has shifted toward the structural resilience of Ethereum’s node infrastructure.
Secondary reporting referencing the CCAF findings indicates that a considerable share of full nodes is concentrated in a limited number of countries and hosted by a small group of cloud providers.
These validator location and hosting patterns are viewed as potential infrastructure risks, reframing the discussion from environmental impact to operational decentralization.
Separate analysis has also examined ongoing questions around Ethereum developer funding sustainability, adding another factor for institutional risk assessments as ESG barriers tied to proof-of-work diminish.
