A groundbreaking proposal to tax cryptocurrency and artificial intelligence operations has emerged from one of Europe’s most influential climate architects, potentially raising €147 billion annually to fund global climate action. Laurence Tubiana, CEO of the European Climate Foundation and co-architect of the Paris Climate Agreement, has positioned herself at the forefront of an ambitious campaign to bridge the climate finance gap through innovative taxation on emerging technologies that consume vast amounts of energy.
The proposal comes from Laurence Tubiana, one of the architects of the Paris Climate Agreement and former French diplomat, now co-chair of the Global Solidarity Levies Task Force. Tubiana’s credentials lend considerable weight to this initiative. As France’s former Climate Change Ambassador and Special Representative for the 2015 COP21 Climate Change Conference, she played an instrumental role in crafting the landmark Paris Agreement that now guides global climate policy.
Her current position as CEO of the European Climate Foundation, combined with her role as a professor at Sciences Po in Paris, positions her uniquely to understand both the technical complexities of climate finance and the political realities of international cooperation. The proposal represents more than academic theorizing—it reflects years of diplomatic experience in navigating the intricate balance between economic interests and environmental imperatives.
The Global Solidarity Levies Task Force, an independent group established after COP28, includes international experts working to propose new strategies for generating hundreds of billions of dollars annually to fight global warming. This institutional backing provides the proposal with the credibility and research foundation necessary to gain serious consideration from policymakers across multiple jurisdictions.
The scale of Tubiana’s proposal is ambitious by any measure. These taxes could yield €147 billion (£127 billion) annually with major economies’ participation, particularly as private jet use jumped 50% (2019-2023) and premium air travel recovered faster than economy post-pandemic, while polls show strong public backing for higher fees on luxury flights. This figure represents a significant portion of the climate finance gap that has plagued international climate negotiations for over a decade.
The cryptocurrency component of this taxation framework specifically targets the energy-intensive nature of digital asset operations. Recognizing the high energy demand of crypto mining, a $0.045 per kWh levy could reduce emissions while generating $5.2 billion in revenue. While this represents only a fraction of the total €147 billion target, the crypto tax serves dual purposes: reducing carbon emissions from energy-intensive mining operations while generating substantial revenue for climate initiatives.
The artificial intelligence sector faces similar scrutiny under this proposal. As AI systems require enormous computational power and energy consumption, Tubiana argues that these emerging technologies should contribute proportionally to addressing the climate challenges they help create through their carbon footprint.
The urgency behind Tubiana’s proposal stems from a stark reality in climate finance. There’s an urgent need to generate new sources of finance to scale up green, climate resilient development in the Global South: by 2025, it’s estimated that developing countries must mobilise USD 500 billion each year to adequately address climate change. This massive funding requirement far exceeds current commitments from developed nations, creating a critical gap that threatens global climate goals.
Traditional approaches to climate finance have consistently fallen short of meeting these needs. Developed countries’ pledges, while substantial, have not matched the scale required for meaningful climate action in developing nations. This financing shortfall has become a persistent source of tension in international climate negotiations, with developing countries arguing that insufficient financial support undermines their ability to transition to clean energy and adapt to climate impacts.
The task force brings governments together to foster political will and advance options for international climate levies, which could significantly contribute to closing the annual funding gap for developing and vulnerable countries (which experts estimate at $2.4 trillion by 2030). The scale of this funding gap—$2.4 trillion by 2030—underscores why innovative financing mechanisms like cryptocurrency taxation have gained serious consideration among climate policy experts.
The proposal strategically targets sectors that combine significant environmental impact with substantial revenue generation potential. Beyond cryptocurrency and artificial intelligence, the Global Solidarity Levies Task Force has examined various options for generating climate finance. The task force has been examining the potential of levies across shipping, aviation, fossil fuels, and financial transactions, as well as exploring options like levies on plastic or cryptocurrency.
The cryptocurrency sector represents a particularly compelling target for climate taxation due to its rapidly growing energy consumption and the concentration of mining operations in specific geographic regions. Bitcoin mining alone consumes more electricity than entire countries, making it a logical focal point for climate-related taxation policies.
The artificial intelligence sector faces similar scrutiny as machine learning algorithms and large language models require massive computational resources. Training a single AI model can consume as much energy as several American homes use in a year, creating a clear connection between AI development and climate impact that justifies targeted taxation.
Implementing a global cryptocurrency tax presents significant coordination challenges that Tubiana and her colleagues acknowledge. The decentralized nature of cryptocurrency networks and the mobility of mining operations create enforcement difficulties that traditional taxation systems are not designed to handle. Mining operations can relocate relatively quickly to jurisdictions with favorable tax policies, potentially undermining the effectiveness of unilateral tax measures.
However, the task force’s approach emphasizes multilateral cooperation to address these challenges. The Global Solidarity Levies Task Force: For People and the Planet was launched in November 2023 by Barbados, France and Kenya. It is supported by a Coalition for Solidarity Levies where countries can follow, consult and engage with the task force’s work. This international framework provides a mechanism for coordinating tax policies and preventing regulatory arbitrage.
The success of such coordination efforts depends largely on the participation of major economies where significant cryptocurrency mining and AI development occur. Without broad international participation, the effectiveness of these levies could be severely limited by capital flight and regulatory shopping.
The proposed cryptocurrency levy of $0.045 per kWh directly targets the energy consumption that drives environmental concerns about digital assets. This approach creates a direct economic incentive for more energy-efficient mining operations and could accelerate the transition toward renewable energy sources in cryptocurrency mining.
The revenue generation potential extends beyond the immediate $5.2 billion estimate for cryptocurrency taxation. As the crypto market continues to expand and energy consumption grows, the potential revenue from such levies could increase substantially. This scalability makes cryptocurrency taxation an attractive option for long-term climate finance strategies.
The broader €147 billion target encompasses multiple sectors beyond cryptocurrency and AI, reflecting a comprehensive approach to climate finance that recognizes no single sector can bear the entire burden. The diversified taxation approach reduces economic disruption in any single industry while maximizing revenue generation potential.
The political viability of Tubiana’s proposal may benefit from shifting public attitudes toward both climate action and digital asset regulation. Polls show strong public backing for higher fees on luxury flights, suggesting growing public acceptance of targeted taxation on activities perceived as environmentally harmful or associated with wealth inequality.
The cryptocurrency sector’s association with speculation and environmental damage in public perception could provide political cover for taxation measures that might face resistance in other contexts. Unlike traditional industries with established political constituencies, the cryptocurrency sector has limited political influence in most jurisdictions, potentially making it an easier target for new taxation.
However, the global nature of cryptocurrency operations and the technical complexity of implementing such taxes present significant implementation challenges that could undermine political support if not carefully managed.
As the Global Solidarity Levies Task Force continues its work, the cryptocurrency taxation proposal represents just one component of a broader strategy to address climate finance gaps through innovative taxation mechanisms. The success of this approach will depend largely on international coordination, technical implementation capabilities, and the political will to pursue ambitious climate finance solutions.
The €147 billion target, while ambitious, reflects the scale of challenge facing the international community in addressing climate change. Tubiana’s proposal offers a concrete pathway toward generating the substantial revenues needed for meaningful climate action, positioning cryptocurrency and AI taxation as essential components of a comprehensive climate finance strategy that matches the urgency of the climate crisis itself.