The IMF proposes energy taxes on crypto miners and AI data centers to reduce carbon emissions and encourage the use of greener technology.
IMF Proposes Energy Taxes on Crypto Miners and AI Data Centers to Curb Carbon Emissions and Boost Green Technology Adoption
According to DL News, the International Monetary Fund (IMF) has suggested a new plan to reduce carbon emissions by introducing taxes on energy used by crypto miners and AI data centers. The idea is to make electricity more expensive for these industries so they will use less energy and adopt more efficient technology. The IMF report estimates that this tax could bring in $5.2 billion each year from crypto mining alone and reduce global carbon emissions by an amount equal to the current emissions of Belgium.
In 2022, crypto mining and data centers used about 2% of the world’s electricity. This number could rise to 3.5% by 2027, leading to carbon emissions of 450 million tons. The IMF believes that higher energy taxes could push these industries to use greener technology. While crypto miners would face higher taxes because they use more energy, data centers might also see increased costs, although to a lesser degree since they often operate in areas with cleaner energy sources.
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$5.2 Billion in Revenue, 100 Million Tons in Carbon Emissions: IMF Proposes Energy Taxes to Curb Crypto Mining and AI Data Centre Impact (PHOTO: CoinMarketCap)
IMF Urges Global Coordination on Energy Taxes for Crypto Miners and Data Centers to Prevent Relocation and Ensure Environmental Impact
The IMF also warns that these taxes need to be applied globally. If only some countries impose strict energy taxes, companies might just move to countries with lower taxes, which would make the effort less effective. Right now, many data centers and crypto miners enjoy tax breaks, which raises questions about the true environmental and economic benefits of these incentives.
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