In addition to cryptocurrencies, taxes on the plastics industry are also mentioned, which could generate revenue of between 25 and 35 billion dollars, and on ultra-rich individuals, which could yield between 200 and 250 billion dollars per year.
Bandeira is HIM too.
COP29, the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change, proposed taxing both cryptocurrency transactions and Bitcoin miners. Additionally, capital gains taxes were also mentioned.
Called “solidarity taxes,” these taxes are expected to raise up to US$344 billion (R$2 trillion) per year if approved.
The justification is that the cryptocurrency industry is one of the largest emitters of CO₂ in the world. An IMF report indicates that Bitcoin mining and the artificial intelligence sector could consume up to 6% of all energy in the world by 2027, accounting for up to 2% of CO₂ emissions.
COP29 suggests new taxes on the cryptocurrency industry
Held by the United Nations (UN) in the city of Baku, capital of Azerbaijan, between November 11 and 22, COP29 aims to solve the world's climate problems. One of the solutions presented was the taxation of several sectors of the cryptocurrency industry.
The first of these is a type of the famous Brazilian CPMF (Provisional Contribution on Financial Transactions). The text suggests a 0.1% tax on all cryptocurrency transactions and aims to raise US$15.8 billion/year from this.
Directly to Bitcoin mining, a tax on electricity used by these companies is proposed, of US$ 0.045 per kWh. The tax would generate US$ 5.2 billion/year, if approved.
Next up is a 20% tax on capital gains, which would hit investors directly. This would raise up to $323 billion in potential annual revenue, making it the largest of the three proposals.
The text was presented by Laurence Tubiana, French economist and CEO of the European Climate Foundation (ECF).
“This solidarity enables all countries to gradually increase their national ambitions to achieve the goal of limiting the temperature increase to 1.5°C.”
“However, there can be no climate justice without fiscal justice, as all countries face the same challenge: how to finance the transition while ensuring that those with the greatest resources and highest emissions pay their fair share,” Tubiana continued. “This is the goal of the Global Solidarity Levy Task Force: by COP30 in Belém, we want to present concrete options for global solidarity levies to offer new sources of predictable, stable and concessional finance.”
COP29 plans to raise $1 trillion a year and use that money to help developing countries.
In addition to cryptocurrencies, there are also mentions of taxes on the plastics industry, which could generate revenue of between 25 and 35 billion dollars, and on ultra-rich individuals, which could yield between 200 and 250 billion dollars per year.