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July 18.2025

2 Minutes Read

Rethinking Climate Funding: Taxing AI and Crypto for Sustainability

Tax on AI and crypto could fund climate action, says former Paris accords envoy

Can Taxes on AI and Crypto Help Combat Climate Change?

In a world increasingly reliant on technology, the environmental impact of artificial intelligence (AI) and cryptocurrency has become a critical conversation. Laurence Tubiana, a former diplomat known for her contributions to the Paris Agreement, has made a compelling case for taxing these energy-intensive sectors to generate funds for climate action.

The Energy Demands of AI and Crypto

AI technologies, though innovative, consume enormous amounts of energy. Whether it's training complex algorithms or running large-scale data centers, the electricity required is staggering. In fact, the energy consumed by cryptocurrencies like Bitcoin is equivalent to the annual consumption of entire countries, highlighting a growing need for accountability and regulation. Tubiana suggests that introducing taxes on these technologies could act as a morally-responsible step toward mitigating their environmental harms.

Will Taxing Technology Really Work?

While Tubiana acknowledges the challenges in implementing taxes on AI, especially as companies could relocate data centers to minimize their tax liabilities, it’s clear that resistance strategies may exist for both AI and cryptocurrencies. Yet, as more voices in finance and governance recognize the need to regulate these sectors, there lies an opportunity to connect the dots between technology and sustainable funding.

Public Support for Climate Action Funds

Recent polling suggests that nations are ready to consider taxing sectors that are perceived as unfairly contributing to environmental issues. Charging luxury air travel, for example, gained traction as it aligned with a growing global appetite for environmental justice. Tubiana's proposals aren’t just about punishing the tech giants but about creating a fair financial system that supports what she describes as a “common effort” in the fight against climate change.

Countries Leading the Charge

The French President, Emmanuel Macron, has pledged to rally nations around these ideas, emphasizing the importance of global collaboration in meeting climate goals. If major economies enact such taxes, they could generate billions for the climate fund and shift corporate behaviors toward greener practices, benefitting society as a whole.

In a time when our digital landscape and ecological systems are heavily intertwined, Tubiana’s call to action is an essential consideration for governments and private sectors alike. This new financial strategy not only aims to address immediate climate concerns but also lays the groundwork for ethical technological advancement.

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Rethinking Climate Funding: Taxing AI and Crypto for Sustainability

Can Taxes on AI and Crypto Help Combat Climate Change?

The Energy Demands of AI and Crypto

Will Taxing Technology Really Work?

Public Support for Climate Action Funds

Countries Leading the Charge

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