Tax on AI and Crypto: Funding Climate Action

Former Paris accords envoy, Laurence Tubiana, suggests that governments explore levies on energy-intensive technologies like artificial intelligence and cryptocurrencies to generate funds for addressing the climate crisis. Tubiana, the president of the European Climate Foundation and a key figure in the Paris Agreement, leads the Global Solidarity Levies Task Force, aiming to identify new revenue sources for environmental initiatives by taxing high-polluting industries such as aviation and fossil fuel extraction.

The Call for Taxation

Tubiana advocates for the taxation of cryptocurrencies and the consideration of levies on artificial intelligence to support climate-focused initiatives. While acknowledging potential resistance, particularly from cryptocurrency proponents in the US, including former President Donald Trump, Tubiana notes an emerging interest from central bankers in these proposals.

Global Impact

She emphasizes that countries could implement such taxes independently, without a universal agreement, providing a potential avenue for funding climate action. By taxing AI and crypto, governments could raise significant revenues to combat environmental challenges.

According to Sam Boolman, ChainIntel’s lead analyst, “Tubiana’s proposal reflects a growing trend where novel revenue streams, such as those from emerging technologies, are being considered to support crucial global initiatives like climate change mitigation. This intersection of technology, finance, and sustainability highlights the evolving landscape of environmental funding.”