According to Odaily, the International Monetary Fund (IMF) has raised concerns about the environmental impact of cryptocurrency mining and artificial intelligence (AI) data centers. In a recent blog post authored by Shafik Hebous, Deputy Director of the IMF's Fiscal Affairs Department, and economist Nate Vernon-Lin, the authors highlighted that these sectors currently account for 2% of global electricity consumption. They warned that this figure could rise to 3.5% within three years based on estimates from the International Energy Agency (IEA).
The report further cautioned that the increasing energy usage could lead to cryptocurrency mining contributing 0.7% to global carbon emissions by 2027. Extending the analysis to data centers, the authors noted that carbon emissions from these sectors could reach 450 million tons by 2027, representing 1.2% of the world's total emissions. To address these environmental challenges, Hebous and Vernon-Lin proposed targeted electricity taxes. They suggested that a direct tax of $0.047 per kilowatt-hour could incentivize the cryptocurrency mining industry to reduce its emissions in line with global targets.
However, the proposal has faced criticism. Opponents argue that such taxes could significantly hinder the development of the cryptocurrency industry. Additionally, some studies indicate that the environmental impact of cryptocurrency mining is still relatively small compared to other major industries like e-commerce or traditional finance.