A proposed climate tax on cryptocurrency mining aims to raise funds for climate action, potentially generating $5.2 billion annually. The tax could promote cleaner practices among mining firms and aid global initiatives for renewable energy.
A growing proposal seeks to implement a climate tax on cryptocurrency mining during the United Nations climate conference. This tax, suggested at $0.045 per kilowatt-hour (kWh) of energy used by crypto mining, could potentially raise $5.2 billion annually. The objective of the tax is to mitigate emissions from the Bitcoin network, which consumes more electricity than many countries, and to finance renewable energy initiatives in underprivileged nations affected by climate change.
The proposed climate tax is part of a larger discussion on taxing under-regulated and polluting industries to close the climate finance gap. Initially, the Global Solidarity Levies Task Force aimed to focus on fossil fuels, aviation, and shipping. However, the expanding proposal now includes taxing billionaires, plastic production, and cryptocurrency mining. The tax is based on research from the International Monetary Fund that establishes necessary corrective measures for pollution linked to crypto mining.
In conclusion, implementing a climate tax on cryptocurrency mining presents a strategic avenue to generate significant revenue for climate initiatives while also holding polluting industries accountable. As the proposal progresses, details on its implementation will be essential to ensure its effectiveness and fairness in addressing climate challenges globally.
Original Source: www.theverge.com
