Carbon Footprint of NFTs and Mitigation Methods

2 min readJul 20, 2023

With the rise of digital assets in recent years, NFTs (Non-Fungible Tokens) have gained an important place in the trading of digital art, games and other digital content. However, the environmental impact of these digital assets should not be ignored. The widespread use of NFTs can have a major impact on energy consumption and carbon footprint.

Carbon Footprint of NFTs

NFTs are traded based on blockchain technology and use energy-intensive algorithms. NFT transactions, especially on the Ethereum blockchain, play a major role in increasing the carbon footprint. According to studies, the amount of energy required to create one NFT can be equivalent to several months of household electricity consumption. Therefore, the rapidly growing popularity of NFTs also increases their negative impact on the environment.

Methods to Reduce the Carbon Footprint of NFTs

Energy Efficiency: Blockchain networks where NFT transactions are performed should be developed to increase energy efficiency. Alternative blockchain platforms that consume less energy should be researched and preferred.

Blockchain Migrations: Currently, most NFT transactions take place on Ethereum. However, with the launch of Ethereum 2.0, the proof-of-stake protocol will be used and energy consumption will decrease. Crypto artists and buyers should support the transition to these energy-friendly platforms.

Natural Energy Sources: It is important to favour energy sources. Natural and renewable energy sources should be used as much as possible. Energy providers should offer and promote green energy options for NFT transactions.

Awareness of NFT Creators: NFT creators should consider their carbon footprint before sharing their art and other content. They can reduce their environmental impact by using file formats that are smaller in size and consume less energy.

Invest in Carbon Offset Projects: NFT platforms can use some of the revenue generated to invest in projects to protect the environment. In this way, a more sustainable impact can be created by offsetting the carbon footprint of NFTs.


NFTs occupy an important place in the digital economy, and reducing the carbon footprint of these assets is critical to adopting an environmentally responsible approach. At an organisational level, NFT platforms and artists should collaborate to improve energy efficiency and take environmentally friendly steps. By reducing their carbon footprint, NFTs can both remain a creative platform in the digital art and content world and contribute to an environmentally friendly future.