One of the architects of the Paris agreement has suggested that governments should explore the possibility of imposing taxes on artificial intelligence and cryptocurrencies as a means to generate additional revenue, which could then be allocated toward addressing the escalating climate crisis.

Laurence Tubiana, who serves as the chief executive of the European Climate Foundation and previously worked as a French diplomat, co-leads the Global Solidarity Levies Task Force, an international effort aimed at identifying new funding sources for climate action through taxes on high-pollution sectors such as aviation and fossil fuel extraction.

“That could be a first step – again, it’s the same rationale [for AI as taxing cryptocurrency], because they use a lot of energy,” she stated, adding that “Crypto seems to be something which is not regulated at all, and of course it’s a concern, from the financial stability element.”

The energy required to generate bitcoin, one of the most prominent cryptocurrencies, matches Poland’s entire annual energy consumption each year, while artificial intelligence also demands enormous resources, leading IT companies to aggressively compete for electricity supplies in various regions across the globe.

Easier said than done

Tubiana acknowledged that taxing AI could present challenges, as companies may attempt to relocate their data centers to avoid levies, while taxing cryptocurrencies would likely face significant pushback, particularly from the US, where figures like Donald Trump strongly support the technology. She pointed out, however, that central bankers have shown interest in exploring such measures.

“Because we need to regulate it – it’s organised crime sometimes, so you should look at where the money’s coming from, and who is the user,” Tubiana stated, noting that a group of experts has been assigned to find a way to tackle this issue.

The taskforce has already achieved an initial victory with several nations reaching an agreement to implement additional fees on first-class and business-class airline tickets, as well as private jet travel, as France, Spain, Kenya, Barbados, Somalia, Benin, Sierra Leone, and Antigua and Barbuda became the first countries to endorse this initiative when it was unveiled in late June.

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.

Remaining fugitive

Rebecca Newsom, who heads global political strategy for Greenpeace International's Stop Drilling Start Paying initiative, called on the task force to expand its efforts by advocating for taxes on fossil fuel extraction.

She argued that targeting oil and gas companies should be the clear priority, noting that as fossil fuel executives continue earning excessive profits while communities suffer worsening climate disasters like floods, storms, and wildfires, it's understandable that 80% of people support forcing these corporations to contribute.

Newsom urged the Global Solidarity Levies Task Force and wealthy nations to respond to this strong public demand for accountability.