The International Monetary Fund has published an analytical article on the impact of cryptocurrency mining and data processing centers used for artificial intelligence on global carbon emissions, according to an expert in the field of international financial law Konstantin Kryvopust.
IMF representatives believe that one of the most effective tools for reducing emissions is to increase the taxation of electricity use in these areas.
As is noted in an IMF release, cryptomining and data centers now consume 2% of global electricity consumption and are responsible for nearly 1% of global emissions. This share is expected to rise to 3.5% by 2027, which is equivalent to Japan’s current electricity consumption.
So, according to the agency, one transaction in the Bitcoin network consumes as much electricity as the average person in Ghana or Pakistan uses in three years. At the same time, a request to ChatGPT consumes 10 times more electricity than a Google search request.
According to IMF estimates, by 2027 carbon emissions from cryptomining and data centers could reach 450 million tons, or 1.2% of the global volume.
The IMF has proposed a $0.047 per kilowatt-hour electricity tax for cryptominers, which could generate $5.2 billion in annual revenue and cut emissions by 100 million tons. A tax of $0.032 per kilowatt-hour is proposed for data centers, which could raise up to $18 billion annually.
Currently, the situation is the opposite of the measures proposed by the IMF. Many data centers and cryptominers enjoy generous tax breaks and incentives. The IMF notes that given the environmental damage, lack of significant job creation and pressure on the electricity grid, which could lead to higher prices for households and reduced demand for other low-emissions goods such as electric cars, the net benefits of these special tax regimes are vague at best.
The IMF emphasizes the need to implement appropriate policies to curb the growth of emissions from these industries.
