According to TechFlow, on November 22, at the United Nations Climate Conference, the Global Solidarity Tax Working Group led by Kenya, Barbados and France released a report proposing the imposition of a climate tax on cryptocurrency mining.
The tax, at $0.045 per kilowatt-hour, is expected to generate about $5.2 billion per year in revenue to support climate action, though the rate would rise to $0.085 per kilowatt-hour if fossil fuel pollution is taken into account.
The annual electricity consumption of the Bitcoin network exceeds the individual electricity consumption of most countries. The proposal aims to encourage mining companies to adopt efficient equipment, transition to renewable energy, and adopt energy-saving transaction verification methods.
The working group plans to submit a specific plan at the IMF and World Bank spring meetings in April 2025, expanding the scope to include billionaires, plastic production and cryptocurrency mining.