Artificial intelligence and cryptocurrency should be taxed to support climate adaptation and environmental investment, according to a former key architect of the Paris climate agreement. The proposal adds to a growing debate on how to harness emerging technologies to finance the transition to a low-carbon future.
Innovative industries face growing scrutiny
Laurence Tubiana, France’s former climate ambassador and a central figure in the 2015 Paris accords, argued that the rapid growth of energy-intensive sectors such as AI and crypto mining must be matched with new regulatory frameworks. Speaking at a climate finance summit in Geneva, she called for a “green contribution” from sectors whose carbon footprints are becoming increasingly difficult to ignore.
“Artificial intelligence and digital currencies are transforming our economies, but they are also consuming huge amounts of energy,” Tubiana said. “A fair and transparent tax on these sectors could generate much-needed funds for adaptation efforts and green infrastructure, especially in vulnerable countries.”
Carbon cost of digital innovation under spotlight
The environmental impact of cryptocurrency mining has been a long-standing concern, particularly with networks like Bitcoin relying on proof-of-work mechanisms that demand high levels of electricity. Recent studies have shown that AI training models — especially large language models — also consume considerable energy, largely driven by data centre demand.
Tubiana’s comments reflect mounting pressure on policymakers to address these emissions and include digital innovation in global climate strategies. With global temperatures rising and extreme weather events becoming more frequent, climate advocates are calling for new revenue streams that align with the polluter-pays principle.
Momentum for climate financing solutions
Proposals to tax high-emission sectors are gaining traction ahead of COP30, with several governments and international bodies examining options for climate-linked levies. The European Union is considering digital taxes with environmental criteria, while the United Nations Development Programme has backed calls for new global financing mechanisms aimed at climate resilience.
Supporters of a tech tax argue that it could help close the gap between current climate finance pledges and actual disbursements. Estimates suggest that developing countries will require over $300 billion annually by 2030 for adaptation measures alone — a target that remains far from reach under existing frameworks.
Debate over implementation and fairness
Critics warn that implementing a tax on AI or cryptocurrencies may prove complex, especially given their global nature and decentralised structures. Tech industry groups have also expressed concern that such levies could stifle innovation and impose disproportionate burdens on start-ups or firms operating in jurisdictions with limited regulation.
Nevertheless, Tubiana insisted that the climate crisis demands bolder thinking. “We need solutions that reflect the scale and urgency of the challenge. Asking high-growth, high-impact sectors to contribute is both logical and necessary,” she said.
REFH – Newshub, 17 July 2025
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